Carpathian Gold Inc.
TSX : CPN

Carpathian Gold Inc.

May 19, 2009 07:00 ET

Carpathian Gold Announces Initial Gold Mineral Resource & Commencement of Phase II Drilling on the RDM Gold Project, Brazil

TORONTO, ONTARIO--(Marketwire - May 19, 2009) - Carpathian Gold Inc. (TSX:CPN) ("the Corporation or Carpathian") is pleased to announce its initial National Instrument 43-101 compliant Resource Estimate, as provided by independent consultants NCL Brasil Ltda. ("NCL"), on its 100% owned Riacho dos Machados ("RDM") gold project located in Minas Gerais State, Brazil. This Resource Estimate includes 1.01 Million ounces gold in the inferred category and 0.29 Million ounces gold in the Measured + Indicated categories. Of the total resource, 79% of the gold resource ounces (all categories) are contained within an open-pit shell utilizing the pit-optimizer software (Whittle) with appropriate mining costs, US$800/ounce gold price, and a 0.30 g/t Au cut-off grade. Below the open-pit shell and excluding a 20 m crown pillar, a higher-grade cut-off was utilized (1.0 g/t Au) based on potential economic parameters to define a resource with underground mining potential.

The following table summarizes the results of the Resource Estimate for both open-pit mineralization and underground mineralization



RDM Mineral Resource

OPEN-
PIT
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Measured Indicated Meas+Ind Inferred

Au Au Au Au Au Au Au Au
Kt (g/t) (koz) Kt (g/t) (Koz) kt (g/t) (Koz) Kt (g/t) (Koz)
----------------------------------------------------------------------------
OXIDE 42 1.72 2.3 574 1.91 35.2 616 1.90 37.5 1,099 1.32 46.6
MIXED 33 1.32 1.4 768 1.67 41.3 801 1.66 42.7 2,365 1.48 112.6
FRESH
ROCK 504 1.81 29.3 2,626 1.89 159.3 3,131 1.87 188.6 11,700 1.60 603.5
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TOTAL
OPEN-
PIT 579 1.77 33.0 3,968 1.85 235.8 4,547 1.84 268.8 15,164 1.56 762.7
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UNDER-
GROUND
----------------------------------------------------------------------------
Measured Indicated Meas+Ind Inferred

Au Au Au Au Au Au Au Au
Kt (g/t) (Koz) Kt (g/t) (Koz) kt (g/t) (Koz) Kt (g/t) (Koz)
----------------------------------------------------------------------------
TOTAL
UNDER-
GROUND 201 3.31 21.4 201 3.31 21.4 2,733 2.84 249.7
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TOTAL
OPEN
PIT +
UNDER-
GROUND
----------------------------------------------------------------------------
Measured Indicated Meas+Ind Inferred

Au Au Au Au Au Au Au Au
Kt (g/t) (Koz) Kt (g/t) (Koz) kt (g/t) (koz) Kt (g/t) (Koz)
----------------------------------------------------------------------------
TOTAL 579 1.77 33.0 4,169 1.92 257.2 4,748 1.90 290.2 17,897 1.76 1,012.4
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- Base case cut-offs grades used in the Mineral Resource are 0.3 g/t Au for the open-pit and 1.0 g/t Au for the underground component of the mineralization.

- Open-pit Resources are constrained within a pit shell utilizing appropriate mining costs and US$800/oz gold.

- Rounding of tonnes as required by reporting guidelines may result in apparent differences between tonnes, grade and contained metal content.

Mr. Dino Titaro, President and CEO of the Corporation commented: "We are exceptionally pleased with this initial Mineral Resource Estimate, given that it represents a starting point for the resource potential for the RDM gold project that has been achieved within 6 months of completion of this acquisition in late 2008. We are highly encouraged as the total gold resource comprised of more than 1.0 Million oz in the Inferred category and 290 Koz in the measured + indicated category has more than met our initial expectations and supports our view that this project can be re-activated along a fast-track development plan. This Resource Estimate is the basis of a detailed Preliminary Economic Assessment that is currently in progress and is primarily focused on the open-pit mineralization, with the view that the open-pit will meet certain payback, return on investment and net present value thresholds required by the Corporation. A new drilling program has been initiated with the goal to rapidly upgrade the inferred resources to the measured and indicated categories for use in a planned feasibility study later this year. We are very confident that this program will not only allow us to upgrade our resources category, but could also increase the size of the open-pit resource along strike. An initial analysis indicates that the expected life of the open-pit mine could be in the order of 10 years".

The open-pit resource lies within a continuously mineralized gold zone of 1,900 metres in length that dips at 35 to 45 degrees to the south east. This mineralized zone is open both to the north and south of the open-pit resource estimate. The open-pit resource extends from surface to a vertical depth of approximately 290 metres. The underground resource starts below the open-pit resource, taking into account a 20 metre crown pillar, and extends 230 metres, and locally approximately 460 metres, below the pit. This mineralization remains open at depth.

Future Potential

In addition to the immediate on-strike extension to the open-pit mineralization to the north and south, the underground resource at RDM has a geological potential of 12 million tonnes at 2.91 g/t Au for a potential of 1.12 million ounces. This was determined by NCL through the measurement of the volume of the deposit from the geological model provided by Carpathian for the resource estimate, using the average grade of the composite samples below the open-pit, less the current underground resource. This potential that exists within the underground grade shell model where data from existing drill holes is too widely spaced to properly interpolate grade and should not be relied upon as a resource. Further deep drilling will be required to ascertain the extent of this mineralization and convert the mineralization into a resource. The grade of this underground mineralization is analogous to existing underground operating mines in Brazil, such as Yamana Gold's Fazenda Brasileiro and Jacobina and Jaguar Mining's Paciencia.

The RDM mine site mineralization occurs within a 14.0 kilometre long shear zone hosted in Precambrian metamorphic rocks that has a demonstrated gold endowment and is covered by Exploration Licenses totaling 21,000 ha . The current resource only represents approximately 2.0 kilometres of the southern portion of this shear zone. There are numerous surface gold targets of similar gold grade mineralization that occur along strike within this shear zone north of the open-pit resource. These targets will be evaluated in early 2010 as they have the potential to provide additional mill feed to increase the sustainable mine life and annual gold production rate.

Resource Estimate

Grade and tonnage reports at various cut-off grades for the open-pit and underground resources are shown in the tables at the end of the press release.

To generate the Mineral Resource Estimate the following data and methods were used:

- Mineral resources were estimated in conformance with the CIM Mineral Resource and Mineral Reserve definitions referred to in National Instrument 43--101, Standards of Disclosure for Mineral Projects.

- The Resource Estimate database includes 11,277 metres of diamond drilling completed by Carpathian and the re-sampling of 5,144 metres of historical core.

- A thorough QA/QC program was in place during the drill program, which included the insertion of standards, duplicates and blanks at regular intervals totalling 20% of the submitted samples along with a check assay program from a secondary assay laboratory with 3% check assays. A review of the QA/QC database showed adequate levels of quality for the resource estimate.

- Densities were determined for a representative number of rock and mineralization types using industry standard methods. A total of 81 determinations exist in the database. The average value for each modeled alteration type was applied to the block model.

- Detailed geologic logging and sectional interpretations led to the development of 3D domain models of lithology and alteration types. These geologic domains were utilized to constrain grade-shell solids with a nominal cut-off of 0.30 g/t Au for the open-pit and 1.0 g/t Au for the underground. The grades shells typically form stacked elongate tabular bodies. In the open-pit, a main mineralized solid is bracketed by a thinner footwall and hanging wall solids. Cumulative thickness of these zones range from 20-30 metres in the north part of the pit and 15 metres in the south part of the pit (true widths). For the underground model a single grade-shell solid was adopted with widths on the order of 5-10 metres.

- A three-dimensional (3D) geological and block model was generated using Gemcom software. Analyses of gold grade distributions and variography studies were utilized for grade interpolation search parameters which used the Ordinary Kriging method.

- A pit optimizer software (Whittle) was used to define the portions of the block model with reasonable prospects of being economical by using open-pit methods, as defined by the CIM code for mineral resources. NCL adopted the following parameters for the Whittle:

-- Gold price of US$800 /oz
-- Mining operating cost: US$1.25/tonne
-- Plant operating cost including a CIL circuit: US$6.30 /tonne
-- G&A: US$1.25/tonne
-- Gold recovery (for all mineralization types based on metallurgical test work completed by Carpathian) of 90%
-- For the open-pit, pit slope angles of 40degrees, 45degrees and 50degrees (oxide, mixed and fresh rock domains) were utilized
-- The Whittle model indicated that at US$800 gold and with the above costs applied that the open-pit resource could handle a 10.3:1 strip ratio

- The underground model was examined to justify the portions of the block model that would support the necessary capital to develop them. The portions that were too isolated or with insufficient grade or tonnage for underground mining were categorized as waste. For the underground model the following parameters were applied.
-- Gold price of US$800 /oz
-- Mining operating cost: US$15.45/tonne
-- Plant operating cost including a CIL circuit: US$6.30/tonne
-- G&A: US$1.25/tonne
-- Gold recovery: of 90%

- The resource classification for all models was based primarily on the number of composites within a search ellipsoid. The requirement for indicated resources is two drill holes from different octants within a search volume of 40 m radius along plunge and 36 m across plunge. Measured resources has half of this range, also requiring two drill holes and inferred resources are defined with a search volume of 100 x 90 m, without restriction of number of drill holes.

Mr. Rodrigo Mello, P.Geo, Senior Geologist with NCL is the Qualified Person responsible for the Mineral Resource estimate. The complete NI 43-101 compliant Technical Report will be filed on SEDAR at www.SEDAR.com within 45 days.

Metallurgical Test Work Results

In addition to the extensive leaching test work that was performed by Companhia Vale do Rio Doce ("Vale"), the previous mine operator at RDM, three 50 kilogram composite samples of the north, central and south areas of the contemplated open-pit mine were collected from fresh drill cores for bench scale mineral process test work performed by SGS Geosol Laboratories in Belo Horizonte, Brazil. The average head grades of the test samples ranged from 1.7 to 2.2 g/t Au. The test work results showed that the gold could be recovered utilizing a standard crushing, wet milling, and cyanide leaching circuit. The samples were ground to a product particle size of 80% passing 200 mesh (74 microns). The average gold extraction achieved after 24 hours of leaching with cyanide was 90.5% without carbon and 90.7% with carbon. The cyanide consumption was relatively low at approximately 1.8 kg per tonne of ore.

2009 Exploration Program

The Corporation has commenced a 15,000 m diamond drill/reverse circulation drilling program. The objective of this program is to in-fill drill areas within the open-pit mineralization that are in the inferred resource category in order to upgrade them to the measured and indicated category. In addition, drilling will also be carried out in the southern extension of the mineralized zone in order to extend this mineralization at depth while keeping within the confines of an open-pit resource. Drilling will also be completed to further define the extent of the open-pit mineralization immediately north of the current resource estimate with the results to be incorporated into an updated resource estimate.

NCL has been retained to complete a Preliminary Economic Assessment on the project based on the current resource estimate. This study will primarily be focused on the open-pit portion of the mineralization. It is expected that this study will be completed early in the third quarter of 2009.

Sample Protocol

All samples are half-core from split NQ drill cores sampled on a metre by metre basis through the mineralized zone and into surrounding altered rock. Re-sampling of Vale drill core utilizes mostly quarter-core samples. All drill core samples collected from Brazil are prepared and analyzed at the independent ISO Certified ALS Chemex laboratory, located near Belo Horizonte, Brazil using industry standard fire assay techniques for gold on 50-gram sample charges with AAS finish. Coarse blanks, pulp blanks, pulp duplicates, and known gold standards are inserted on a routine basis. They consist of 12% of submitted samples. In addition, on a periodic basis 3% of the crusher rejects are re-submitted and a minimum of 3% of the pulps will be analyzed at the ISO Certified SGS Laboratory near Belo Horizonte, Brazil for check assays.

Mr. Titaro is the qualified person (as defined in NI 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.

Carpathian Gold 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 along with progressing its exploration and development plans on its 100% owned Rovina Valley Au-Cu project located in Romania.

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.



RDM Mineral Resources (Various Cut-off grades)

Open-Pit Resource, within the Pit Shell at $800/oz Au.
Base-case cut-off grade is shaded.

---------------------------------------------------------------------------
Cut-Off
Grades Measured Indicated Meas + Ind Inferred
---------------------------------------------------------------------------
Au Au Au Au Au Au Au Au Au
(g/t) Kt (g/t)(Koz) Kt (g/t) (Koz) Kt (g/t) (Koz) Kt (g/t) (Koz)
1.4 332 2.38 25.4 2,382.4 2.43 186.1 2,715 2.42 211.5 7,929 2.13 542.9
1.2 392 2.21 27.9 2,713.9 2.29 199.9 3,106 2.28 227.8 9,441 2.00 606.1
1.0 451 2.07 29.9 3,131.9 2.13 214.7 3,583 2.12 244.6 11,199 1.86 668.3
0.9 480 2.00 30.8 3,345.3 2.06 221.2 3,826 2.05 252.0 11,995 1.80 692.7
0.7 532 1.88 32.2 3,784.4 1.91 232.4 4,317 1.91 264.6 13,595 1.68 733.7
0.5 563 1.81 32.8 3,919.1 1.87 235.1 4,482 1.86 267.9 14,749 1.60 756.7
0.3 579 1.77 33.0 3,968.2 1.85 235.8 4,547 1.84 268.8 15,164 1.56 762.7
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Rounding of tonnes as required by reporting guidelines may result in
apparent differences between tonnes, grade and contained metal



Underground Resource beneath the $800/oz Au Open-Pit.
Base-case cut-off grade is shaded.

--------------------------------------------------------------------------
Cut-Off
Grades Measured Indicated Meas + Ind Inferred
--------------------------------------------------------------------------
Au Au Au Au Au Au Au Au Au
(g/t) Kt (g/t) (Koz) Kt (g/t) (Koz) Kt (g/t) (Koz) Kt (g/t) (Koz)
2.0 177 3.59 20.4 177 3.59 20.4 2,003 3.33 214.6
1.5 178 3.58 20.4 178 3.58 20.4 2,313 3.13 233.0
1.2 200 3.32 21.4 200 3.32 21.4 2,499 3.00 241.0
1.0 201 3.31 21.4 201 3.31 21.4 2,733 2.84 249.7
0.8 201 3.31 21.4 201 3.31 21.4 3,053 2.64 259.4
--------------------------------------------------------------------------

Rounding of tonnes as required by reporting guidelines may result in
apparent differences between tonnes, grade and contained metal content.

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

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