Carpathian Gold Inc.

Carpathian Gold Inc.

July 07, 2010 06:00 ET

Carpathian Updates Brazil and Romanian Project Advancements

TORONTO, ONTARIO--(Marketwire - July 7, 2010) - Carpathian Gold Inc. (TSX:CPN) (the "Corporation" or "Carpathian") wishes to provide a progress update on its wholly owned Riacho dos Machados ("RDM") Gold Project located in the state of Minas Gerais, Brazil and on the Rovina Valley Project ("RVP"), located in west-central, Romania.

RDM Gold Project, Brazil

A Feasibility Study ("FS") is nearing completion and is following the guidelines of the NI 43-101 Preliminary Economic Assessment ("PEA") that was announced on August 12, 2009. The FS will be released within the upcoming weeks. The updated resource estimate, reserve estimate, engineering studies, and permitting activities are all advancing in parallel with key progress points highlighted below.

  • Resources/Reserves and Geotechnical: An updated NI 43-101 compliant resource estimate to be used for the FS is near completion. Five drill rigs are presently on site, including 3 diamond drill rigs for ore definition and 2 geotechnical rigs. Following the ore definition drilling, the diamond drill rigs will be utilized for testing strike extensions and new exploration targets. A minimum of 6,000 m of ore definition and exploration drilling is planned for the present program and this follows the 32,000 m of drilling that has been completed to date on the RDM gold project.

  • Engineering/Metallurgy: All capital costs, operating costs, infrastructure, layout design and mining plans required for the FS are essentially complete with optimization work underway integrating the various studies to enhance the robust economics of the project. Recent metallurgical test work results support the earlier work performed for the PEA of 90% or better gold recovery. Indications from the ongoing FS support the PEA study results of low cost, near-term +100,000 oz per year gold production.

  • Permitting: As previously announced (April 14, 2010), the Corporation has already been granted the critical path time line license, the Licenca Previa ("LP") that allows the earthworks in the mine, water retention and tailing dams to be constructed. All technical documentation required for the Licenca Instalacao ("LI") that will allow construction to begin on the Project, has been compiled and will be submitted by mid-July to the state environmental agency, SUPRAM, for their review and approval. As previously announced on June 21, 2010, all surface lands required for the life-of-mine footprint for the open pit mining operation have now been acquired.

  • Project Financing: The project is well financed at this stage as a result of the Macquarie Bank Limited US$30 Million gold sale and purchase agreement that closed on May 21, 2010. Management is evaluating non-equity project finance options and is in continuous discussions with various financial institutions, with the aim of obtaining additional project financing upon completion of the FS.

Rovina Valley Project, Romania

Following the release of the positive PEA study (announced March 23, 2010), the Corporation embarked on a deep drilling program on one of its three gold-rich copper porphyries, the Ciresata porphyry. The PEA study indicated a long life project of 19 years, producing approximately 200,000 oz of gold and 50 million pounds of copper annually.

  • The results of the first deep drill hole (RDG-16) on the Ciresata Porphyry were released on May 11, 2010 and included 668 m at 0.70 g/t Au and 0.15% Cu and includes 208 m at 1.13 g/t Au and 0.19% Cu. This drill hole verified the geologic model in its upper part serving as an in-fill hole and more importantly has extended the Au-Cu mineralization approximately 300 m below the present resource estimate that was utilized in the PEA study.

  • Deep drilling has resumed on the Ciresata porphyry to evaluate mineralization depth extensions below the present resource estimate. This program will eventually be expanded to evaluate known mineralized targets lateral to the deposit.

  • The Corporation is continuing with its long lead EIA and SIA work, including its proactive local stakeholder engagement programs. These programs includes interactive local community hall public meetings and partnership programs with local NGO's (with European Union funding) and community leaders to implement community-based projects. The Rovina Valley Project has no legacy mining issues and the proposed mine site footprint developed from the PEA does not include any known protected heritage sites or archaeological occurrences.

  • As previously announced, a consortium of State-recognized independent consulting groups have been retained for the purpose of preparing a technical report to convert the Rovina Exploration License into a Mining License as per the norms of the National Agency of Mineral Resources ("NAMR"). This report includes preliminary evaluations of environmental factors, risk factors and economic benefits as well as defined resources/reserves along with mining and processing, all to be reviewed and approved by the NAMR for Mining License designation. The work program for this study and the report are progressing on schedule for the submittal of this document to the NAMR in Q4 2010.

Mr. Titaro, P. Geo., is the qualified person (as defined in National Instrument 43-101) responsible for preparing the information, including 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 Project located in Romania. The RDM Gold Project, based on the PEA is expected to be a +100,000 ounce per year gold producer at a relatively low cash cost. The Project is currently in the Feasibility Study stage.

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)
    Carpathian Gold Inc.
    Mike O'Brien
    Manager Investor Relations
    +1 (416) 368-7744
    +1 (416) 260-2243 (FAX)
    Investor Relations, Montreal
    +1 (514) 341-0408 or 1-866-460-0408
    +1 (514) 341-1527 (FAX)
    Seton Services, UK
    Toni Vallen
    +44 207 224 8468