Carpathian Gold Inc.

Carpathian Gold Inc.

November 29, 2011 11:14 ET

Carpathian's Ongoing Drilling Returns 518 m of 0.85 g/t Au & 0.21% Cu at its Ciresata Porphyry Deposit, Romania

TORONTO, ONTARIO--(Marketwire - Nov. 29, 2011) - Carpathian Gold Inc. (TSX:CPN) (the "Corporation" or "Carpathian") is pleased to provide further results from its 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.

The resource delineation and definition drilling at the Ciresata gold-rich Cu porphyry deposit has now been completed with approximately 37,200 metres drilled in 2011. Assay results from the Ciresata drilling program through drill hole RGD-41 have previously been reported (see last News Release dated September 20, 2011). Assay results from an additional 14 drill holes have been received and include core holes RGD-42 to RGD-55 that are reported herein. Assay results for the balance of the core holes from RGD-56 through RGD-63 are pending and will be reported at a later date. The drill hole intersections reported here are mixtures of in-fill holes in the core of the deposit and drill holes defining the margins of the deposit.

The following are highlight intersections from these drill holes with complete intersections listed in the table further on in the press release together with brief descriptions.

  • 487 metres at 0.90 g/t Au and 0.15% Cu (1.21 g/t Au-eq*) in drill hole RGD-55
    • Inclusive of 117 metres at 1.39 g/t Au and 0.20% Cu (1.80 g/t Au-eq*)
  • 353 metres at 0.92 g/t Au and 0.16% Cu (1.26 g/t Au-eq*) in drill hole RGD-45
    • Inclusive of 107 metres at 1.46 g/t Au and 0.21% Cu (1.89 g/t Au-eq*)
  • 518 metres at 0.85 g/t Au and 0.21% Cu (1.28 g/t Au-eq*) in drill hole RGD-50
    • Inclusive of 222 metres at 1.01 g/t Au and 0.24% Cu (1.50 g/t Au-eq*)
  • 493 metres at 0.83 g/t Au and 0.14% Cu (1.11 g/t Au-eq*) in drill hole RGD-48
    • Inclusive of 191 metres at 1.17 g/t Au and 0.16% Cu (1.49 g/t Au-eq*)

The immediate Ciresata deposit area is now considered to have been drill tested with drill hole RGD-63 as the data cut-off for the updated resource estimate. Any further significant resource growth at Ciresata is now considered to lie within surrounding satellite targets.

The objective of the 2011 drilling program is to delineate the size and tenor of the gold-rich Ciresata porphyry deposit and upgrade its inferred resource category to the measured plus indicated resource categories. Additional in-fill drilling outside of Ciresata was also undertaken to upgrade the inferred resources of both the Colnic and Rovina porphyry deposits to the measured plus indicated categories. The results from the 2011 drill program will be utilized to provide an updated resource estimate for the RVP, which will then be utilized in the pre-feasibility study that is also underway. There are currently six diamond drill rigs working and it is expected that by the end of 2011 approximately 45,000 metres of core drilling will have been completed on the project.

With the delineation drilling of the immediate Ciresata deposit area now completed, one drill rig has been dedicated to test satellite targets in the vicinity of Ciresata. Four drill rigs are being utilized for the in-fill diamond drilling programs at the Colnic Au-Cu porphyry and Rovina Cu-Au deposits. The in-fill drilling program at the Colnic deposit has been completed with assay results pending, and the four drill rigs are currently drilling in-fill core holes at the Rovina Cu-Au porphyry deposit. The sixth drill rig is being utilized for geotechnical holes for the pre-feasibility study.

In addition to the in-fill drilling that is currently underway, the Corporation has allocated approximately 15,000 metres of drilling over the next 10 months to exploration drill test targets in the Ciresata deposit area. This drilling is currently in progress, as well as drilling to test other targets on the Rovina Exploration License as part of a collaborative effort between Carpathian and Barrick Gold Corporation ("Barrick") resulting from the strategic private placement of Barrick into Carpathian as previously announced on July 18, 2011.

"We continue to be pleased with the drilling results from the Ciresata porphyry, and while the drilling focus has now shifted to the nearby Colnic and Rovina porphyry deposits for use in the on-going pre-feasibility study, we believe the 2011 drill program has enhanced the size of Ciresata and its contribution to the pre-feasibility study" said Dino Titaro, CEO of Carpathian. Mr. Titaro added, "At least one drill rig will remain committed to testing satellite targets in the Ciresata area through the end of 2011 and into next year".

Below is a drill hole intersection table from the recently received assay results of holes RGD-42 to RGD-55:

Drill hole From
To (m) Length
RGD-42 245 695 450 0.52 0.11 0.74 North margin
Inclusive 316 386 70 0.74 0.12 0.99
RGD-43 81 792 711 0.79 0.15 1.10 Central part
Inclusive 126 485 359 1.05 0.18 1.42
RGD-44 251 711 460 0.55 0.10 0.76 East margin
RGD-45 424 777 353 0.92 0.16 1.26 Southern part
Inclusive 451 558 107 1.46 0.21 1.89
Also 453 501 48 1.70 0.23 2.16
RGD-46 427 629 202 0.53 0.09 0.71 West margin
RGD-47 319 674 355 0.70 0.12 0.95 Central to eastern margin
Inclusive 319 509 190 0.87 0.14 1.16
Also 319 405 86 1.09 0.16 1.42
RGD-48 217 710 493 0.83 0.14 1.11 Central to eastern margin
Inclusive 229 576 347 0.96 0.15 1.27
Also 318 509 191 1.17 0.16 1.49
Also 344 378 34 1.34 0.17 1.69
RGD-49 294 472 178 0.21 0.06 0.33 North margin
RGD-50 332 850 518 0.85 0.21 1.28 Northwest margin
Inclusive 336 779 433 0.90 0.22 1.35
Also 432 654 222 1.01 0.24 1.50
Also 457 500 43 1.24 0.27 1.79
RGD-51 403 678 275 0.63 0.11 0.86 West margin
Inclusive 617 673 56 0.83 0.14 1.12
RGD-52 262 731 469 0.48 0.12 0.72 North margin
Inclusive 486 570 84 0.60 0.15 0.92
RGD-53 418 677 259 0.26 0.06 0.39 Southeast margin
RGD-54 165 520 355 0.74 0.16 1.07 Central to west margin
Inclusive 287 427 140 0.96 0.21 1.39
Also 289 380 91 1.01 0.21 1.45
RGD-55 190 677 487 0.90 0.15 1.21 Central to east margin
Inclusive 265 382 117 1.39 0.20 1.80
Also 310 333 23 1.96 0.25 2.47
* 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 length:
RGD-42 / 1110N / 52.2 degrees / -85 degrees / 888.0 metres;
RGD-43 / 1060N / 56.0 degrees / -83 degrees / 903.0 metres;
RGD-44 / 985N / 59.3 degrees / -79 degrees / 777.0 metres;
RGD-45 / 880N / 49.9 degrees / -70 degrees / 923.0 metres;
RGD-46 / 1080N / 0.0 degrees / -90 degrees / 891.0 metres;
RGD-47 / 1010N / 53.3 degrees / -70 degrees / 709.3 metres;
RGD-48 / 1060N / 44.1 degrees / -78 degrees / 855.0 metres;
RGD-49 / 1180N / 49.5 degrees / -88 degrees / 651.0 metres;
RGD-50 / 1130N / 50.3 degrees / -67 degrees / 885.0 metres;
RGD-51 / 1060N / 50.3 degrees / -83 degrees / 708.0 metres;
RGD-52 / 1240N / 0.0 degrees / -90 degrees / 777.0 metres;
RGD-53 / 925N / 49.2 degrees / -78 degrees / 760.0 metres
RGD-54 / 1130N / 228.6 degrees / -75 degrees / 832 metres
RGD-55 / 1010N / 49.1 degrees / -70 degrees / 820 metres

Drill hole locations are shown on the Drill hole Plan Map on the Corporations website at

In-fill drilling in the core of the Ciresata deposit confirms the high-grade tenor of the deposit and includes the intersections from RGD-55 with 487 metres at 0.90 g/t Au and 0.15% Cu including 117 metres of 1.39 g/t Au and 0.20% Cu; and RGD-48 with 493 metres at 0.83 g/t Au and 0.14 % Cu including 191 metres of 1.17 g/t Au and 0.16 % Cu.

Core hole RGD-50 is an in-fill drill hole on the northwest margin of the deposit and intersected 518 metres at 0.85 g/t Au and 0.21% Cu and extends the high-grade core of mineralization. RGD-45 is an in-fill drill hole in the south part of the deposit and intersected 353 metres at 0.92 g/t Au and 0.16% Cu which is higher-grade than nearest drill holes.

All drill holes on the margins of the deposit, with exception of RGD-49 and RGD-55, have intersected significant mineralization that management believes will exceed the cut-off grade, which will be determined by the on-going pre-feasibility study. Examples include RGD-44 with 460 metres at 0.55 g/t Au and 0.10 %Cu and RGD-51 with 275 metres at 0.63 g/t au and 0.11 %Cu.

RVP Background Information

RVP is comprised of three Au-Cu porphyry systems (Rovina, Colnic and Ciresata) that 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$1,450/oz gold and US$3.00/lb copper the study arrived at a pre-tax NPV of US $1.13 billion based on a 10% discount rate.

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

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 ("RDM") 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 RDM 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 production by mid 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, except as required by law. 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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