Carpathian Gold Inc.
TSX : CPN

Carpathian Gold Inc.

September 08, 2010 06:00 ET

Carpathian Hits Best Hole to Date in Romania: 716 m of 1.14 g/t Au & 0.16% Cu, Including 244 m of 1.70 g/t Au & 0.22% Cu, Extending the Mineralization 280 m Below Previous Drilling

TORONTO, ONTARIO--(Marketwire - Sept. 8, 2010) - Carpathian Gold Inc. (TSX:CPN) (the "Corporation" or "Carpathian") is pleased to provide additional results from its deep drill hole program at the Ciresata Au-Cu porphyry deposit, one of three proximal Au-Cu porphyry deposits discovered by Carpathian that comprise the 100% owned Rovina Valley Project ("RVP") in west-central Romania. Results from drill hole RGD-17, the second drill hole from its three deep drill hole program at the Ciresata Porphyry, have been received with drill hole RGD-18 in progress. The Ciresata Porphyry is a blind deposit that begins approximately 40 to 140 m below surface.

Hole RDG-17 was drilled vertically for 975 m, with the top of the porphyry beginning at approximately 135 m below surface. This hole intercepted 716 m averaging 1.14 g/t Au and 0.16% Cu and includes several higher-grade intervals within this intersection as shown below.

Drill hole From (m) To (m) Length (m) Au (g/t) Cu (%) Au-eq* (g/t)
RGD-17** 160 876 716 1.14 0.16 1.47
Including 160 593 433 1.38 0.18 1.75
Including 216 460 244 1.70 0.22 2.15
and 363 460 97 2.02 0.24 2.51
 
* To estimate Au-eq (Gold Equivalent) a gold price of US $1,000 and a copper price of US $3.00/lb is used. The Au-eq at these commodity prices is similar to previous Au-eq. calculations used by the Corporation at a gold price of US $675 and a copper price of US $1.80.
** RGD-17 located on drill fence 1060N and drilled vertically to 975 m depth; drill hole location is shown on drill hole location map at www.carpathiangold.com.

RGD-17 is now the longest and highest-grade mineralized intercept encountered to date at the Ciresata Porphyry. This hole also extended the known Au–Cu mineralization at the Ciresata Porphyry approximately 280 m below previous drilling and 200 m below the resource estimate block model utilized in the Preliminary Economic Assessment ("PEA") dated March 23, 2010. Below the block model at a vertical depth of approximately 673 m, this hole (RGD-17) encountered 203 m of 0.83 g/t Au & 0.14% Cu from 673 m to 876 m, including 71 m of 1.05 g/t Au & 0.15% Cu from 705 m to 776 m. Hole RGD-17 hole was collared 100 m north of the previously reported intersection from deep drill hole RGD-16 which averaged 668 m of 0.70 g/t Au and 0.15% Cu and included 208 m of 1.13 g/t Au and 0.19% Cu (see press release dated March 11, 2010).

"We are very pleased with the results of this second hole of the deep drilling program as it intersected a high-grade part of the Ciresata Porphyry deposit not previously known, with outstanding grades over a very significant length", said Dino Titaro, President and CEO of Carpathian." In addition, the extension of the mineralization to depth significantly below our previous drilling supports our belief that the Ciresata deposit, the highest gold-grade porphyry of the Rovina Valley Project, has significant upside for resource expansion. This drill hole also indicates that the average grade of the Ciresata porphyry could increase and with additional drilling has the potential for this high grade Au-Cu porphyry to impact and directly improve the positive results from the recently completed NI 43-101 compliant Preliminary Economic Assessment study released on March 23rd of this year."

The Ciresata Porphyry is a Au-Cu deposit that is presently defined by a NI 43-101 compliant inferred resource estimate based on 15 widely spaced drill holes to a nominal maximum depth of 650 m below surface. The resource is estimated at 101.3 million tonnes at a grade of 0.90 g/t Au and 0.17% Cu (at a base-case cutoff of 0.70 g/t Au-eq* utilizing a gold price of US$675 per ounce and a copper price of US$1.80/lb). Several of these previous drill holes ended in mineralization and the objective of the three deep drill hole program is two-fold; 1) to test the depth extension of this mineralization in the context of utilizing a bulk underground mining method as outlined in the recently released results of the PEA (see press release dated March 23, 2010), and 2) to confirm the geologic model for the deposit and begin upgrading the resource to measured plus indicated categories.

The Ciresata Porphyry is also open laterally and will be drill tested in conjunction with this deep drilling program. The assay results from hole RGD-17 and those from hole RGD-16, the first hole from our deep drill program (see above), have both verified the resource and geologic model and extended the Au-Cu mineralization well below the present resource estimate model.

In addition to the commencement of the drilling of hole RGD-18, the Mining License application studies are advancing and progressing on schedule, with the goal of all documentation to be submitted to the appropriate government authorities by the end of this year for the conversion of the Rovina Exploration License to a Mining License.

Background: PEA Study

This study outlines the plan to mine the Rovina and Colnic porphyry Au-Cu deposits by open pit methods focusing on the high-grade cores of these deposits as they extend to the present surface. The 'blind' and higher grade Ciresata Au-Cu porphyry deposit will be mined by bulk underground mining methods. The results of the PEA Study highlighted additional upside potential for the resource growth at the Ciresata deposit, which is the objective of the deep drill hole program. This program will test for depth extensions of the mineralization and provide infill drill hole data useful for upgrading the present resource category from Inferred to Indicated. A summary of the PEA results is provided below with further details found in the press release dated March 23, 2010:

Highlights of the Study include:

  • Average annual gold production of 238,000 ounces per annum for the first five years and averaging 196,000 ounces per annum over the mine life of 19 years, for a total of 3.72 million ounces of recoverable gold over the life-of-mine (LOM).

  • Average annual copper production of 53.5 million lbs for the first five years and averaging 49.4 million lbs per annum over the19-year mine life, totaling 938 million lbs of recoverable copper over LOM.

  • Total gold equivalent ounces produced over the 19-year mine life is 6.22 million.

  • Total operating cash cost of US $379/oz with copper as a by-product credit and US $483/oz gold ounce on a co-product basis (copper cash cost is US $1.05/lb on a co-product basis).

  • At near spot metal prices of US $1,000/oz gold and US $3.00/lb copper the NPV is US $1,130 million based on a 5% discount rate.

  • Project internal rate of return ("IRR") of 24.2%, with a 3.3-year payback on an initial Project capital expenditure of US $509.4 million, at a gold price of US $1,000/oz and copper price of US$3.00/lb.

Sample Protocol

All samples collected for the 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 Ciresata deposit are sampled at one metre intervals through the mineralized zone and two-metre intervals in the upper barren zone.

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.

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. 

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.

Contact Information

  • Carpathian Gold Inc.
    Dino Titaro
    President & CEO
    +1(416) 368-7744
    +1(416) 260-2243 (FAX)
    or
    Carpathian Gold Inc.
    Mike O'Brien
    Manager Investor Relations
    +1(416) 368-7744
    +1(416) 260-2243 (FAX)
    info@carpathiangold.com
    www.carpathiangold.com
    or
    Paradox Investor Relations, Montreal
    +1(514) 341-0408 or 1-866-460-0408
    +1 (514) 341-1527 (FAX)
    info@paradox-pr.ca
    or
    Seton Services, UK
    Toni Vallen
    +44 207 224 8468
    toni@setonservices.co.uk