Carpathian Gold Inc.
TSX : CPN

Carpathian Gold Inc.

November 22, 2010 07:00 ET

Carpathian Intersects 709 m of 0.63 g/t Au & 0.14% Cu, & Extends Mineralization 300 m Below Previous Drilling in Romania

TORONTO, ONTARIO--(Marketwire - Nov. 22, 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-18, the third of the deep-drill hole program at the Ciresata porphyry, have been received.

Carpathian has also commenced a planned 20,000 m drill program for the Ciresata deposit to continue to upgrade the present inferred resource to the measured and indicated category, define mineralization limits and test satellite targets.

The Ciresata porphyry system is a blind deposit that begins 40 to 140 m below surface. Hole RDG-18 was collared 70 m north of RGD-17 and drilled vertically for 980.2 m. This drill hole is the northern-most of the three completed deep-drill holes with the stronger portion of the mineralized section of the porphyry first encountered at a relatively greater depth of 170 m and extending to a much greater depth of 930 m down-hole, as compared to the previous two deep-drill holes. RGD-18, intercepted 709 m at 0.63 g/t Au and 0.14% 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-18** 221   930   709   0.63   0.14   0.92  
  Including 309   890   581   0.66   0.15   1.00  
    320   483   163   0.74   0.13   1.02  
  And 717   831   114   0.81   0.16   1.15  
                           
  * To estimate Au-eq (Gold Equivalent) a gold price of US $1000 and a copper price of US $3.00/lb is used. This is consistent with the Au-eq. calculations the Corporation has used in its recent press releases for Ciresata. 
  ** RGD-18 located on drill fence 1110N and drilled vertical to 980.2 m depth; drill hole location is shown on drill hole location map at www.carpathiangold.com

Drill hole RGD-18 extends the known Au-Cu mineralization at the Ciresata porphyry approximately 300 m below previous nearby drilling and approximately 270 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 down-hole depth of approximately 669 m, this hole encountered 221 m of 0.66 g/t Au & 0.15% Cu from 669 m to 890 m, including 114 m of 0.81 g/t Au & 0.16% Cu from 717 m to 831 m.

"We are very pleased with the results of the deep-drilling program at the Ciresata porphyry, the highest gold-grade porphyry of the Rovina Valley Project porphyry cluster, as it has extended mineralization 280 to 300 meters below the previous drilling and supports our belief of significant resource growth potential at Ciresata", said Dino Titaro, President and CEO of Carpathian." In addition, drill hole intersections such as in RGD-17 highlight the high-grade gold tenor of Ciresata and the potential of further drilling to positively impact the recently completed NI 43-101 compliant Preliminary Economic Assessment study released on March 23rd this year." Mr. Titaro adds that "in addition to a significant drilling program planned for Ciresata, we look forward to initiating feasibility studies and obtaining a Mining License for the Rovina Valley Project in 2011".

Deep Drill-hole Program

Carpathian has now completed the three deep-drill hole program within the Ciresata deposit as outlined earlier this year. This deposit is defined by an initial 43-101 compliant inferred Resource Estimate based on 15 widely-space drill holes to a nominal maximum depth of 650 m below the surface. Several of the previous drill holes ended in mineralization and the objective of the three deep-drill hole program was 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 positive results of a NI 43-101 compliant PEA (see press release dated March 23, 2010), and 2) to confirm the resource and geologic model for the deposit in the upper part of the drill holes as well as test for depth and lateral extensions to the mineralization.

The three deep-drill hole program comprised of holes RGD-16, RGD-17, and RGD-18 are located along a north-south line over a distance of 170 m from within the core of the Ciresata deposit extending to the northern portion of the deposit. The results of this drilling program have successfully met the objectives of the program as defined above by adding significant depth extensions of gold and copper mineralization below previous drilling in addition to verifying and upgrading the grade tenor of the inferred resource estimate. Results of these three deep drill holes have added 280 to 300 m depth extension of Au-Cu mineralization below the previous drilling. Highlights from the two previous drill holes, RGD-16 and RGD-17 (previously released on September 8th and May 11th, 2010), are as follows and include 716 m at 1.14 g/t Au and 0.16% Cu from drill hole RGD-17:

  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 216   460   244   1.70   0.22   2.15  
  RGD-16** 142   933   791   0.63   0.14   0.91  
  Including 316   524   208   1.13   0.19   1.53  
                           
  * To estimate Au-eq (Gold Equivalent) a gold price of US $1,000 and a copper price of US $3.00/lb is used. This is consistent with the Au-eq. calculations the Corporation has used in its recent press releases for Ciresata. 
  ** RGD-16, 17, and 18 are located on a north-south line in the center of the known deposit with the following northing coordinates; 513212, 513313, and 513381 respectively. A drill hole location map is available at www.carpathiangold.com

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 $1.13 billion 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 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 Ciresata deposit are sampled at one metre intervals through the mineralized zone and two-meter 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 43-101 resources of 3.88 million ounces of gold in the measured plus indicated categories and 4.58 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, which is in the final phase of a Feasibility Study, is expected to produce approximately 100,000 ounces of gold per annum, with construction targeted by management to be initiated either later this year or early 2011. The Rovina Valley Project in Romania 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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