Carpathian Gold Inc.
TSX : CPN

Carpathian Gold Inc.

May 11, 2011 07:00 ET

Carpathian Drilling Continues Intersecting Strong Wide Gold-Copper Zones at Its Ciresata Porphyry Deposit, Romania

TORONTO, ONTARIO--(Marketwire - May 11, 2011) - Carpathian Gold Inc. (TSX:CPN) (the "Corporation" or "Carpathian") is pleased to provide further results from its 35,000 metre 2011 diamond drill program at the Corporation's 100% owned Rovina Valley Project ("RVP") in west-central Romania. The RVP includes three Au-Cu porphyries discovered by the Corporation with the focus of the 2011drilling program on the gold-rich Ciresata copper porphyry deposit. Four drill rigs are presently working at the Ciresata deposit with the objective of defining the deposit limits, upgrading the inferred resource to the measured plus indicated resource categories, as well as testing satellite targets.

Approximately 7,000 metres of the planned drill program have been completed year to date with results through drill-hole RGD-21 previously reported. Assay results from drill-holes RGD-22, 23, and 24 located in the south and southwest margin of the deposit have recently been received and include the following highlight intersections:

  • 434 metres at 0.95 g/t Au and 0.16% Cu (1.23 g/t Au-eq) in drill hole RGD-24
    • Inclusive of 357 metres at 1.06 g/t Au and 0.17% Cu (1.41 g/t Au-eq)*
  • 358 metres at 0.88 g/t Au and 0.16% Cu (1.21 g/t Au-eq) in drill hole RGD-23
    • Inclusive of 210 metres at 1.02 g/t Au and 0.18% Cu (1.39 g/t Au-eq)*
  • 410 metres at 0.73 g/t Au and 0.16% Cu (1.06 g/t Au-eq) in drill hole RGD-22
    • Inclusive of 172 metres at 1.05 g/t Au and 0.22% Cu (1.50 g/t Au-eq)*

"We continue to be impressed with the drill results from the Ciresata porphyry and look forward to further drill results from our accelerated program", said Dino Titaro, President and CEO of Carpathian." Mr. Titaro adds, "The Ciresata porphyry continues to demonstrate its high-grade tenor emphasizing the new gold-rich porphyry class of deposit we have discovered in Romania. The results from the ongoing 2011 drill program support our belief that the size of this deposit will be enhanced and will contribute significantly to the results of our RVP pre-feasibility study".

Core hole RGD-23 is the southern-most deep drill hole completed to date and extends the drill-defined mineralization a further 60 metres to the south. This drill hole intersected significant gold-copper mineralization over 358 metres and includes a higher-grade core of 210 metres at 1.39 g/t Au-eq*.

Core hole RGD-22 is a step-out from drill hole RGD-16 (which intersected 791 m at 0.63 g/t Au and 0.14% Cu, including 208 m of 1.13 g/t Au and 0.19% Cu) located on the southwest margin of the deposit and extended the drill-defined mineralization a further 75 metres to the southwest. Hole RGD-22 intersected significant gold-copper mineralization over 410 metres and includes a higher-grade core of 172 metres at 1.50 g/t Au-eq*.

Core hole RGD-24 is an in-fill drill hole in the southwest part of the deposit and near drill hole RGD-5, which was only drilled to a relatively shallow depth of 369 metres (which intersected 65 m at 0.77 g/t Au and 0.12% Cu for 1.02 g/t Au-eq). RGD-24 intersected significant gold-copper mineralization well below the area tested by hole RGD-5 and intersected 434 metres of strong gold copper mineralization, including 357 metres of 1.41 g/t Au-eq*.

Drill hole locations are shown on the Drill-hole Plan Map on the Corporations website at www.carpathiangold.com.

Below is a drill-hole intersection table from the recently received assay results:

Drill holeFrom
(m)
To
(m)
Length
(m)
Au
(g/t)
Cu
(%)
Au-eq*
(g/t)
RGD-22**2066164100.730.161.06
Including2924641721.050.221.50
RGD-23**2876453580.880.161.21
Including3415512101.020.181.39
Including3414831421.170.191.55
RGD-24**1766104340.950.161.23
Including2536103571.060.171.41
Including3354541191.640.192.03
  • To estimate Au-eq (Gold Equivalent) a gold price of US $1,000 and a copper price of US $3.00/lb is used. Metallurgical recoveries are not taken into account. This is consistent with the Au-eq. calculations the Corporation has used in its recent press releases for Ciresata.
  • ** The following drill-hole collar list includes: Drill-hole number / drill fence / azimuth / inclination / total depth: RGD-22 / 960N / 50° / -85° / 797 metres; RGD-23 / 880N / 50° / -70° / 807 metres; RGD-24 / 925N / 50° / -78° / 928 metres. Drill hole locations are shown on Drill-hole Plan Map at www.carpathiangold.com.

The Ciresata porphyry system is a blind deposit that begins 40 to 140 m below surface. The recent drill results from the south and southwest margin of the deposit shown above highlight significant gold-copper mineralization over intervals ranging from 360 metres to 430 metres in length. Mineralized intervals within the core of the deposit can reach up to 716 metres in length (example, drill-hole RGD-17 which intersected 716 metres at 1.14 g/t Au and 0.16% Cu (1.47 g/t Au-eq); see the Corporation's Press Release dated September 8th, 2010. On the presently known northwest margin of the deposit, mineralized intervals range up to 626 metres (example, drill-hole RDG-21 with 626 metres at 0.92 g/t Au and 0.19% Cu (1.32 g/t Au-eq); see Corporation's Press Release dated March 22nd, 2011.

The deposit remains open to the north and west. With the four drill rigs presently operating at Ciresata the corporation plans to expedite the definition of the Ciresata deposit.

RVP Background Information

RVP is comprised of three Au-Cu porphyry systems (Rovina, Colnic and Ciresata) which were discovered by the Corporation. From 2006 to 2008, 181 diamond drill holes totaling 71,375 m have been completed on the project prior to the present drilling program. In late 2008, PEG Mining Consultants Inc. ("PEG") completed a NI 43-101 resource estimate ("2008 Resource").

A detailed NI 43-101 compliant Preliminary Economic Assessment ("PEA") was released on March 23, 2010. The PEA was completed by PEG, which led a consortium of specialists assembled for the study. The PEA, utilized conventional open-pit mining for the Colnic and Rovina deposits with the Ciresata deposit mined by bulk-underground methods. Ore processing will utilize industry-standard crush-grind and flotation process at a rate of 40,000 tonnes per day to produce a gold-rich saleable copper concentrate. This process does not require the use of cyanide. The study considered a 19 year mine-life over which a total of 6.22 million Au-eq ounces would be produced. At metal prices of US$1,250/oz gold and US$3.00/lb copper the study arrived at a pre-tax NPV of US $870 million based on a 10% discount rate. Further details of the study are presented in previous news releases of the corporation.

According to the cautionary statement required by NI 43-101, it should be noted that this PEA is preliminary in nature as it includes inferred mineral resources that cannot be categorized as reserves at this time and as such there is no certainty that the preliminary assessment and economics will be realized. The full Study of the PEA is available on www.SEDAR.com.

Mining License Application Update

A consortium of Romanian certified consultants have completed studies and reports required by the National Agency of Mineral Resources ("NAMR") for conversion of the Rovina Exploration License to a Mining License. These studies include resource-reserve assessments, mining and processing evaluations, environmental-social baselines and risk assessments, and health & safety evaluations. The technical portion of the reports have already been submitted to the NAMR; however, and in cooperation with the NAMR, the anticipated positive impact of the present drill program to significantly change and increase the gold-copper resources at the Ciresata deposit have lead to a mutual agreement on including the present drill program results in the Mining License Application, prior to the conversion to a Mining License.

Sample Protocol

All samples collected from any program in Romania are prepared and analyzed at the independent ALS Romania SRL Laboratory in Gura Rosiei, Romania, owned and operated by ISO Certified ALS-Chemex Laboratory, using industry standard fire assay techniques for gold on 50-gram sample charges with AAS finish. Copper is analyzed using the industry-standard method of aqua-regia digest on a 0.40-gram sub sample with an AAS finish. Coarse blanks, pulp blanks, pulp duplicates, core twins and certified gold and copper standards are inserted on a routine basis. They consist of 15 per cent of submitted samples. In addition, coarse rejects from 3% of the samples are periodically re-submitted for analysis. For the current drill program a minimum of 3% of sample pulps are analyzed at the ISO Certified OMAC Laboratory in Ireland, for check assays. The drill assays reported in this press release are from split HQ and NQ size diamond core with the remaining half retained for reference. All holes at the Ciresata deposit are sampled at one metre intervals through the mineralized zone and two-metre intervals in the upper barren zone.

Mr. Titaro is the qualified person (as defined in National Instrument 43-101) overseeing the design and implementation of the present exploration programs. He is responsible for preparing the technical information contained in this news release.

About Carpathian

The Corporation is an exploration and development company whose primary business interest is developing near-term gold production on its 100% owned Riacho dos Machados Gold Project in Brazil, which is currently in the Feasibility Study stage, along with progressing its exploration and development plans on its 100% owned Rovina Valley Au-Cu Project located in Romania. On a company wide basis, the Corporation currently hosts NI 43-101 resources of 4.0 million ounces of gold in the measured plus indicated categories and 4.5 million ounces of gold in the inferred category, as well as 759.1 million pounds of copper in the measured plus indicated category and 663.1 million pounds of copper in the inferred category.

The Riacho dos Machados Gold Project, for which a Feasibility Study has been completed, is targeted to produce in the order of ±100,000 ounces of gold per annum, with construction targeted by management to be initiated by mid 2011 with an anticipated goal for the commencement of production in late 2012 or early 2013. The Rovina Valley Project will enhance the Corporations growth profile as a mid-tier gold producer.

Forward-Looking Statements: This press release includes certain statements that may be deemed "forward-looking statements". Forward-looking statements are frequently characterized by words such as "plan", "expect", "Project", "intend", "believe", "anticipate", "estimate", and other similar words, or statements that certain events or conditions "may" or "will" occur. All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Corporation expects, are forward-looking statements. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurance that forward-looking statements will prove to be accurate, as results and future events could differ materially from those anticipated statements. The Corporation undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

The TSX does not accept responsibility for the adequacy or accuracy of this news release.

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