Press Release Source: Carpathian Gold Inc. On Friday September 16, 2011, 8:00 am EDT
TORONTO, ONTARIO--(Marketwire - Sept. 16, 2011) - Carpathian Gold Inc. (TSX:CPN - News; the "Corporation" or "Carpathian") is pleased to report that it has received the Ad Referendum ("AR") for the Licenca Instalacao ("LI") thereby enabling it to proceed with the overall construction of its 100% owned Riacho dos Machados ("RDM") Gold Project, located in Minas Gerais State, Brazil. The Corporation will expedite the construction of the project with the targeted goal for the commencement of gold production in late 2012/early 2013 at a nominal anticipated production rate averaging + 94,000 ounces per annum for an initial eight year period.
The Corporation is also pleased to announce that for its mining fleet it has selected Caterpillar ("CAT") equipment for the life of the mine operation. The initial order of mining equipment has been requisitioned and it is anticipated that it will be delivered to the project by second quarter of 2012. A contract mining group has been selected to commence the pre-stripping of the deposit prior to the arrival of the CAT equipment.
Earlier this year, the Corporation announced that it had already acquired the secondary and tertiary crushers, and the ball mill and ancillary grinding equipment, that has a capacity of 9,000 tpd, which will be shipped to the project site this fall. The project currently calls for a 7,000 tpd milling operation.
There are numerous exploration targets on strike of the RDM mine site and exploration drilling will commence on these targets to further enhance both the mine life and annual production rate.
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.
Mr. Titaro is the qualified person (as defined in National Instrument 43-101) overseeing the design and implementation of the present work programs. He is responsible for preparing the technical information contained in this news release.
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.