Carpathian Gold Inc.
TSX : CPN

Carpathian Gold Inc.

July 11, 2011 11:43 ET

Carpathian Reports Further Significant Drill Results at Ciresata, Romania: 314 m of 1.08 g/t Au and 0.20% Cu (1.48 g/t Au-eq(i))

TORONTO, ONTARIO--(Marketwire - July 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 2011 drilling program on the gold-rich Ciresata copper porphyry deposit. Four drill rigs are presently working at the Ciresata deposit, with a fifth drill rig arriving this week, 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 14,500 metres of the planned drill program have been completed at the Ciresata porphyry deposit year-to-date with results through to drill-hole RGD-24 previously reported. Assay results from an additional five drill-holes (RGD-25, 26, 27, 28, 29 and RGD-30) have been received representing 4,152 metres of drilling and are reported herein. With the exception of RGD-27, which is an in-fill hole, all of the other drill holes reported here are located on the outer perimeter of the Ciresata deposit. The following significant Au-Cu intercepts from these latest drill holes are highlight below.

  • 314 metres at 1.08 g/t Au and 0.20% Cu (1.48 g/t Au-eq(i)) in drill hole RGD-27
    • Includes 65 metres at 1.49 g/t Au and 0.25% Cu (2.01 g/t Au-eq(i))
  • 668 metres at 0.86 g/t Au and 0.17% Cu (1.20 g/t Au-eq(i)) in drill hole RGD-28
    • Includes 198 metres at 1.13 g/t Au and 0.17% Cu (1.49 g/t Au-eq(i))
  • 249 metres at 1.04 g/t Au and 0.16% Cu (1.37 g/t Au-eq(i)) in drill hole RGD-29
    • Includes 54 metres at 1.50 g/t Au and 0.18% Cu (1.88 g/t Au-eq(i))
  • 427 metres at 0.77 g/t Au and 0.16% Cu (1.10 g/t Au-eq(i)) in drill hole RGD-30

"With the definition drill program now targeting the perimeter of the Ciresata porphyry mineralization we continue to be impressed with the drill results", said Dino Titaro, President and CEO of Carpathian." Mr. Titaro adds, "These results indicate the deposit is still open and supports our belief that the size of this deposit will increase. The grades of the mineralization are consistent with previous results so that the additional tonnage and grades will contribute significantly to the results of our RVP pre-feasibility study".

Core hole RGD-27 is an in-fill hole drilled at -80 degrees from the same location as the vertical deep drill-hole RGD-16 (which intersected 791 metres at 0.63 g/t Au and 0.14% Cu, including 208 metres at 1.13 g/t Au and 0.19% Cu, see Corporation's News Release dated May 11, 2010) and has extended the mineralization within the core of the deposit 100 metres to the northeast at depth.

Core hole RGD-28 is a deep vertical drill hole (999 metres total depth) located 60 metres northeast of drill hole RGD-17 (716 metres at 1.14 g/t Au and 0.16% Cu, see Corporation's New Release dated September 8, 2010) and extends the high-grade core of the deposit both at depth and laterally to the northeast by approximately 60 metres.

Core hole RGD-29 is located on the south margin of the deposit and is north of drill hole RGD 25. While RGD-25 intersected only anomalous mineralization, RGD-29 intersected 249 metres at 1.04 g/t Au and 0.16 % Cu (1.37 g/t Au-eq.(i)). This intersection extends the mineralization south 50 metres toward RGD-25 which marks the southern perimeter of the deposit.

Core hole RGD-30 is a step-back drill hole to the southwest and extends the known mineralization in the upper part of the deposit 40 metres to the southwest.

Core holes RGD-25 and RGD-26 were drilled on the southeast and northwest margins of the deposit, respectively. These holes intersected long intervals of anomalous gold-copper mineralization with 496 metres at 0.40 g/t Au-eq(i) in RGD-25 and 453 metres at 0.73 g/t Au-eq(i) in hole RGD-26. These drill holes are interpreted to represent the low-grade margins of the deposit in the northwest and southeast margins. All other lateral directions still open at the deposit are still open laterally as well as at depth.

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

The results from five new drill holes representing 4,152 metres of drilling are presented below.

Drill hole From (m) To (m) Length (m) Au (g/t) Cu (%) Au-eq(i) (g/t)
RGD-25 180 676 496 0.27 0.06 0.40
Inclusive 508 562 54 0.42 0.07 0.56
RGD-26 224 677 453 0.51 0.11 0.73
Inclusive 343 408 65 1.49 0.25 2.01
RGD-28 254 922 668 0.86 0.17 1.20
Inclusive 344 542 198 1.13 0.17 1.49
Also 383 416 34 1.50 0.21 1.91
RGD-29 367 616 249 1.04 0.16 1.37
Inclusive 489 543 54 1.50 0.18 1.88
RGD-30 258 685 427 0.77 0.16 1.10
Inclusive 475 507 32 1.02 0.19 1.43
(i) 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-25 / 810N / 50 degrees / -68 degrees / 772 metres;
RGD-26 / 1180N / 51 degrees / -79 degrees / 715 metres;
RGD-27 / 985N / 50 degrees / -80 degrees / 805 metres;
RGD-28 / 1060N / 50 degrees / -89 degrees / 999 metres;
RGD-29 / 850N / 50 degrees / -70 degrees / 861 metres;
RGD-30 / 1110N / 49 degrees / -75 / 981metres.

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 presented herein are representing significant down-hole mineralization thicknesses on the edge of the deposit as previously defined in the NI 43-101 Resource Estimate. These intersections include 668 metres in RGD-28 on the northeast margin; 249 metres in RGD-29, an in-fill on the south margin; and 427 metres in RGD-30, a step-back to the southwest. In the core of the deposit mineralized intervals 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 8, 2010.

The deposit remains open to the southwest, west and northeast. With four drill rigs presently operating at Ciresata and a fifth drill rig arriving this week, the Corporation plans to expedite the definition of the Ciresata deposit as well as nearby satellite deposits.

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.

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 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 focusing on activities surrounding permitting and construction, 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 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.

Contact Information