TORONTO, ONTARIO–(Marketwire – Feb. 28, 2013) – Carpathian Gold Inc. (TSX:CPN) (the “Corporation” or “Carpathian”) is pleased to provide an update on its wholly owned Riacho dos Machados Gold Project (“RDM” or “Project”) located in the state of Minas Gerais, Brazil.
Project Construction and Development
- The Project development remains on track for gold production in the second half of 2013 at an annualized rate of approximately 100,000 ounces for an initial period of +8 years.
- As of the end of February 2013, the construction and development of the project in order to commence the start of gold production is approximately 70% complete with the work force approaching a peak number of 1,000.
- The Project will mine 7,000 t/d of ore from an open pit operation and will treat ore utilizing a standard crush, grind and a CIL processing facility.
- A new reverse circulation drill rig dedicated for ore-control and short-term mine planning has been commissioned and is drilling in the pit.
- Waste removal and mining is progressing as planned and ore is currently being stockpiled for the start up of the process plant in the second half of this year.
- The tailing dam and tailing impoundment area construction is progressing with approximately 1/3 of the impoundment area now lined and will be ready to receive water for the operations in early April.
- All major equipment and ancillary material for the crusher systems and process plant are either on site or being delivered and being erected as per the schedule.
- The assay laboratory is on site and ready to operate.
- The upgrade of the power line to the Project is underway and remains on schedule.
As previously reported (January 16, 2013) an initial 5,720 metre exploration-drilling program was completed to evaluate on-strike near surface oxide gold mineralization both to the north and south of the open pit. These targets are a short distance from the crushing operations so that any new, economically viable, mineralized zone could easily be trucked to the processing facility that has excess capacity as it is a 9,000 t/d plant. The exploration program included soil geochemistry, rock-float sampling, trenching, auger drilling, and diamond core drilling. Three targets north, and one south of the mine were drill tested while several additional targets were scout drilled.
New assay results have been received for the Northwest Extension of the open pit and the Mata da Roca Target. Highlights are as follows:
- Northwest Extension (Immediately north along strike of the Feasibility open pit)
- Diamond drill hole FNW-01 intersected 6 m with 0.70 g/t Au (46 – 52 m hole depth)
- Diamond drill hole FNW-03 intersected 4 m with 1.07 g/t Au (1 – 5 m hole depth)
- Mata da Roca 2 Target (8.4 km south of the pit)
- Diamond drill hole FMU-01 intersected 7 m with 2.09 g/t Au (21 – 28 m hole depth)
Assay results that were previously reported are as follows:
- Cinco Mil Target (less than 1 km north of the pit)
- Trench TRCM1 with 11 metres (m) at 3.23 g/t Au
- Diamond drill hole FCM-13 intersected 11 m with 4.10 g/t Au (0-11 m hole depth, located below TRCM1)
- Manguinha Target (2 km north of the pit)
- Diamond drill hole FMG-05 intersected 11 m with 1.02 g/t Au (14-25 m hole depth)
- Diamond drill hole FMG-07 intersected 8 m with 1.34 g/t Au (31-39 m hole depth)
Notes: Intersections utilize a 0.10 g/t Au cut-off allowing a maximum 2.0 consecutive m at <0.10 g/t Au and minimum intersection grade of 0.30 g/t Au. All above intersections are in weathered oxide zone. Intersection lengths are reported as down-hole length as true widths are not precisely known at this time. All drill holes are inclined at -50 to -60 degrees drilling azimuth of 270 to 290 degrees with exception of FMG-05 which drilled at -85 degrees and azimuth of 90 degrees. Hole orientations are designed to cut the regional trend of mineralization, which is north striking and east dipping.
The Mata da Roca target is deemed to be high priority target as it falls within a composite 3 km long Au-in-soil anomaly (defined as >10 ppb Au with core zones of >25 ppb Au; background is approximately 5 ppb Au). There still remain at least three targets within 5 km north of the open pit mine area that will require drill testing in 2013.
BTV Features Carpathian Gold on BNN & PDAC Event Details
BTV-Business Television features Carpathian Gold on BNN Saturday, Mar 2 @ 8:00pm EST & Sunday, Mar 3 at 9:30am EST. http://www.b-tv.com/i/videos/CarpathianGoldMar13.wmv
Please drop by our booth #2341 during the PDAC at the Metro Toronto Convention Centre-South building on March 3-6, 2013.
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.
Carpathian 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 focused on construction, along with progressing its exploration and development plans on its 100% owned Rovina Valley Au-Cu Project (“RVP”) located in Romania.
On a company wide basis, Carpathian currently hosts NI 43-101 proven plus probable reserves of 830,200 ounces of gold (proven reserves of 2,300 Kt at 1.30 g/t Au and probable reserves of 18,500 Kt at 1.23 g/t Au) and NI 43-101 mineral resources (inclusive of reserves) of approximately 8.1 million ounces of gold in the measured plus indicated categories (RVP: 405.9 million tonnes at 0.55 g/t Au for 7.19 million ounces, RDM: 19.36 million tonnes at 1.50 g/t Au for 0.936 million ounces) and approximately 0.9 million ounces of gold in the inferred category (RVP: 26.8 million tones at 0.38 g/t Au for 0.33 million ounces, RDM; 9.447 million tones at 1.93 g/t Au for 0.587 million ounces), as well as 1.4 billion pounds of copper in the measured plus indicated category (RVP: 405.9 million tones at 0.16% Cu) and 97.0 million pounds of copper in the inferred category (RVP: 405.9 million tonnes at 0.16% Cu) (see press releases dated July 17, 2012 and April 6, 2011 for further details on resources and reserves).
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 in the second half of 2013. The Rovina Valley Project will enhance Carpathians growth profile as a mid-tier gold producer.
Mr. Titaro is the qualified person (as defined in National Instrument 43-101) and is responsible for preparing the technical information contained in this news release.
Forward-Looking Statements: Statements and certain information contained in this press release and any documents incorporated by reference may constitute “forward-looking statements” within the meaning of applicable Canadian securities legislation which may include, but is not limited to, information with respect to the Corporation’s expected production from, and further potential of, the Corporation’s properties; the Corporation’s ability to raise additional funds; the future price of minerals, particularly gold and copper; the estimation of mineral reserves and mineral resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Often, but not always, forward-looking statements/information can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements/information is based on management’s expectations and reasonable assumptions at the time such statements are made. Estimates regarding the anticipated timing, amount and cost of exploration and development activities are based on assumptions underlying mineral reserve and mineral resource estimates and the realization of such estimates are set out herein. Capital and operating cost estimates are based on extensive research of the Corporation, purchase orders placed by the Corporation to date, recent estimates of construction and mining costs and other factors that are set out herein. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Carpathian and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.
Such factors include: uncertainties of mineral resource estimates; the nature of mineral exploration and mining; variations in ore grade and recovery rates; cost of operations; fluctuations in the sale prices of products; volatility of gold and copper prices; exploration and development risks; liquidity concerns and future financings; risks associated with operations in foreign jurisdictions; potential revocation or change in permit requirements and project approvals; competition; no guarantee of titles to explore and operate; environmental liabilities and regulatory requirements; dependence on key individuals; conflicts of interests; insurance; fluctuation in market value of Carpathian’s shares; rising production costs; equipment material and skilled technical workers; volatile current global financial conditions; and currency fluctuations; and other risks pertaining to the mining industry. Although Carpathian has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein or incorporated by reference are made as of the date of this presentation or as of the date of the documents incorporated by reference, as the case may be, and Carpathian does not undertake to update any such forward-looking information, except in accordance with applicable securities laws. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers are cautioned not to place undue reliance on forward-looking information. The forward-looking information contained or incorporated by reference in this document is presented for the purpose of assisting shareholders in understanding the financial position, strategic priorities and objectives of the Corporation for the periods referenced and such information may not be appropriate for other purposes.
The TSX does not accept responsibility for the adequacy or accuracy of this news release.