Carpathian Gold Inc.
TSX : CPN

Carpathian Gold Inc.

March 03, 2011 11:20 ET

Carpathian Provides 2011 Project Updates and Announces Expanded Work Program in Romania

TORONTO, ONTARIO--(Marketwire - March 3, 2011) - Carpathian Gold Inc. (TSX:CPN) (the "Corporation" or "Carpathian") wishes to provide the following project updates and expanded plans for 2011.

RDM Gold Project, Brazil

The Feasibility Study ("FS") for the 100% owned Riacho dos Machados ("RDM") Gold Project, located in Minas Gerais State, Brazil is nearing completion with peer reviews underway and results anticipated to be released within the coming weeks. This study will include a new updated resource estimate based on the additional drilling of 74 core holes for 9,938 metres, completed at the end of 2010. The objective of that drill program was to upgrade a large portion of the inferred resources within the open pit portion of the deposit to the measured plus indicated resource category. This new resource is being utilized in the FS for the mineral reserve status.

Carpathian has already purchased a 9,000 tonne per day ball mill, crushers (the "Plant") and additional equipment complimentary to the Plant. Additional long lead items required for the construction and development of the project are also in the process of being obtained with Hatch Engineering and Lyon Engineering advancing EPCM in anticipation of the construction decision.

Exploration drilling along the northern strike extension of the deposit will also be carried out during the year with five targets presently defined. Currently, an initial 6,300 metres of drilling has been designated for this program, which will likely expand, pending the drill results.

Carpathian's objective is to commence the construction of this project in the first half of 2011, with the goal of the commencement of gold production in the latter half of 2012.

Rovina Valley Project, Romania

As previously announced, a 20,000 metre drilling program is underway on the 100% owned Rovina Valley Project ("RVP"), Romania. The primary objective of this program is to drill a combination of in-fill holes and lateral extension holes on the Ciresata gold-rich copper porphyry in order to build upon the size of the deposit. This work program follows the successful drilling in 2010 that expanded the deposit at depth by an additional 280 to 300 metres below previous drilling. 

Based on drill results to date, a second drill rig is being mobilized to the project and an additional two to three drill rigs will follow. The objective is to accelerate the pace of drilling and to add an additional +15,000 metres of drilling on the project in order to continue to evaluate the depth and lateral extension of the Ciresata porphyry, provide further upgrading on the remaining inferred resources on both the Colnic and Rovina porphyry systems and test satellite targets.

Bulk sample metallurgical test work for pre-feasibility/feasibility design purposes will be completed in 2011 along with additional detailed geotechnical work, mining and process design work following the recommendations of the Preliminary Economic Assessment study completed in 2010. 

The objective of this expanded work program is to complete a new resource on the entire project, with the goal of providing a resource to be dominantly in the measured plus indicated category and expected for completion by the end of 2011. This information along with the other technical work programs will be utilized in a pre-feasibility/feasibility study to be completed within the first half of 2012.

The long lead environmental, social and permitting programs will also be expanded during the year. All of the documentation to convert the current Exploration License to a Mining License has been submitted as per the norms of the National Agency of Mineral Resources ("NAMR") for their review and acceptance.

About Carpathian

The Corporation is an exploration and development company whose immediate business interest is to develop gold production in the near term at its 100% owned Riacho dos Machados Gold Project in Brazil. Currently, the Feasibility Study for the RDM Gold Project is being completed. 

As the RDM Gold Project is being developed to the production phase, the Corporation will advance its exploration and development plans for it's 100% owned Rovina Valley Au-Cu Project located in Romania. When the Rovina Project is brought into production, this will elevate the Corporation's gold output resulting in it becoming a substantial mid-tier gold producer.

On a company wide basis, the Corporation currently hosts NI 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 plus 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 is targeted to produce in the order of 100,000 ounces of gold per annum with an anticipated goal for the commencement of gold production in late 2012. 

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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