TORONTO, ONTARIO--(Marketwire - April 6, 2011) - Carpathian Gold Inc. (TSX:CPN) (the "Corporation" or "Carpathian") is pleased to announce the positive results from the NI 43-101compliant feasibility study (the "Feasibility Study") for the development of the open-pit portion of its 100% owned Riacho dos Machodos Gold Project ("RDM" or the "Project) located in Minas Gerais State, Brazil. The Feasibility Study was compiled by a consortium of prominent industry consultants with Tecnomin Projetos e Consultoria Ltda. ("Tecnomin") as the lead consultant, NCL Brasil Ltda. ("NCL") and Golder Associates Brasil Consultoria e Projetos Ltda. ("Golder") as members of the consortium.

Highlights of the feasibility study are as follows:

  • Proven and probable open-pit reserves of 20.9 million tonnes at 1.24 g/t Au for 830,200 ounces of gold (based on a US$950 per ounce gold pit-shell).

  • Initial 8-year mine life at a mill throughput of approximately 7,000 tonnes per day utilizing conventional open-pit mining and crushing-grinding with CIL recovery of gold.

  • Average annual recoverable gold production of 93,400 ounces (100,000 ounces/year in the first three years of operation).

  • Average cash operating cost over the life of mine of US$558 per ounce.

  • Pre-tax project net present value ("NPV") of US$150.8 million based on a 5% discount rate using a gold price of US$ 1,150 per ounce for gold resulting in an internal rate of return ("IRR) of 24.9%.

  • After-tax project NPV of US$123.8 million based on a 5% discount rate at US$ 1,150 per ounce of gold with an IRR of 21.9%.

  • Using near current spot price of US$1,350 per oz of gold, the after-tax NPV based on a 5% discount rate is US$220.1 million with an IRR of 33.4%.

  • Estimated start up capital of US$160 million.

  • Global measured plus indicated mineral resource of 936,600 ounces (inclusive of mineral reserves) and 587,300 ounces in the inferred category.

  • Additional opportunities for future conversion of resources to reserves and resource growth, reduction in capital and increased mill feed grade. 

"The completion of the Feasibility Study along with basic engineering in just three years from the date of the acquisition of the RDM Project, during a period of global economic crisis, is a major achievement that allows the transformation of the Corporation into a near-term gold producing company with a built-in project-development pipeline, said Dino Titaro, President and CEO. "We have already commenced in the implementation of the development of this Project through the purchase of a 9,000 tonne per day processing facility as well as starting the detailed engineering and arrangements on key items, including permits and potential project financing. Opportunities exist to further benefit the development cost of the project as well as its annual gold throughput that are currently being assessed and developed. The Project has significant upside on resource and reserve growth and a work program is in progress to expand on these opportunities" Mr Titaro, also adds " I am pleased to advise that the Board of Directors of the Corporation have accepted and approved the development of the RDM Gold Project".

The following table presents a list of the project parameters from the Feasibility Study.

Project Parameters Open-pit design based on economic pit-shell at US$950 gold price
Total Tonnes Ore Produced 20.9
Open-pit Ore Production Rate 7,000 t/d
Average Ore Processing Rate 2.555 million t/yr
Average Mill Feed Gold Grade 1.24 g/t
Gold Recovery 90%
Total Contained Gold 830,200 oz
Total Gold Production 747,031 oz
Mine life 8 years
Average Annual Gold Production 93,400 ounces
Average Annual Gold Production (1st three years) 100,000 ounces
Total Capital (includes sustaining capital, contingency, owners cost) US$188.7 million
Pre-Production Capital (includes pre-strip of 19.0 million tonnes) US$145.8 million
Initial Capital (includes pre-production capital plus majority of year 1 purchase of mining equipment) US$160.3 million
Total Operating Cost (average LOM) US$20.0/t
Effective Tax Rate 15.25%
Royalties 2%
Refining + Transport + Insurance US$13/ounce
Cash Operating Cost Per Ounce US$558 per ounce
Cut-Off grade 0.37 g/t Au
Average Operational Strip Ratio 7.4:1
Exchange Rate R$:US$ 2.0

In addition to the above, the economic parameters used for the financial analysis of the cash flow model also include the following:

Item Unit  
Average Mining Cost US$/tonne mined 1.40
Processing Cost US$/ore tonne 7.76
G&A US$/ ore tonne 1.01
Reclamation fee US$'000 per year 90.0
Closure Cost US$ 8,200,000

The cash flow financial model was created utilizing the mine production schedule, associated gold grades, gold recoveries and capital and operating costs as set out above. The mine design and reserves for the Project where based on a gold price of US$950 per ounce. A base case gold price for the financial model was a constant US$1,150 per ounce for the life of mine. This gold price represents the approximately two-year trailing average price for gold and was established as the base case given the current gold trend and the near term production profile of the project. It also represents the possible put arrangement for gold that would be established by senior bank debt lenders for the Project. The exchange rate set for the project was established at the beginning of the study and reflects the possible currency hedge that would be applicable to the project from a senior bank debt lender.

A summary of both the pre-tax and after-tax economic evaluation of the Project at ranging gold prices is shown below.

Economical Evaluation Results Summary  
Financial Model US$1,150
NPV5 pre-tax (US$ MM) $ 150.8   $ 179.2   $ 207.6   $ 236.0   $ 264.4  
NPV5 (after tax) (US$ MM) $ 123.8   $ 147.8   $ 171.9   $ 196.0   $ 220.1  
IRR (pre-tax)   24.9 %   28.4 %   31.8 %   35.2 %   38.5 %
IRR (after tax)   21.9 %   24.6 %   27.6 %   30.5 %   33.4 %
Payback (yr)   3.8     3.4     3.0     2.8     2.6  

For tax calculation purposes, the economic model uses a straight-line depreciation method based on the mine life and does not take into account other tax benefits that may be applicable under Brazilian tax rules, which could increase free cash. At a gold price of US$1,150 per ounce the average yearly EBITDA is approximately US$52 million. At US$1,350 gold the average yearly EBITDA is approximately US$70 million.

Additional Opportunities

Several opportunities have been identified that will be followed up during the construction period and afterwards, namely as follows.

  • The state power company CEMIG has indicated its willingness to continue negotiating a reduced power rate on a long-term contract and a collaborative effort for upgrading additional power to the project area in an expedited manner.

  • The balance of defined open-pit measured + indicated resources that were not converted to mineral reserves for this study will be evaluated for further conversion once operations commence that could then add an additional year to the initial mine-life.

  • Resource growth potential is considered to be very good from both on-strike discoveries of new deposits over a known 14 km length as well as further economic evaluations of underground resources.

  • With careful selective mining and the grade control program that will be implemented there is an opportunity to reduce the current mining dilution of approximately 22% and improve the process plant feed grade. Mine optimization studies are currently underway.

  • Further optimization of gold recovery and reagent consumption is possible with some additional test work.

  • Leasing of mining equipment to reduce initial upfront capital requirements.

Mineral Reserves and Resources

The open-pit mineral reserves were estimated using diluted resource model and pit optimisation software Whittle Four-X with the Lerch-Grossman algorithm to develop a series of nested pits for the mineral resource, considering the full open-pit option and initial topography.

Optimized shells based only on measured plus indicated resources were selected as guides for mine designs. The mineral reserves are defined as in-pit diluted mineral resources above the internal cut-off grade of 0.37 g/t Au. Contained measured resources are transformed to proven reserves and contained indicated resources are transformed into probable reserves. Inferred mineral resources are not converted to mineral reserves and are instead treated as waste for mine planning purposes in the Feasibility Study. The overall dilution of the mineral resources was calculated at 22%. The final open-pit design was based on the economic shell generated at US$950 per ounce of gold with variable slopes angle. The haulage road width is 20 metres at a 10% road gradient. The last three benches were designed with a ramp of 15 metres wide. The open-pit design includes a single exit on the east side of the pit that provides access to the ROM pad area, primary crusher, and the waste rock storage area. The final pit is 1.8 kilometres long in the north-south direction and 0.6 kilometres wide in the east-west direction. The highest wall will be about 270 metres on the southeast side. The total area impacted by the pit is about 92 hectares. 

The table below summarizes the mineral reserve estimate. 

Mineral Reserves for RDM Gold Project

MM tonnes Gold (g/t) Gold Contained (kHz)
Proven 2.3 1.30 97.5
Probable 18.5 1.23 732.7
Total 20.9 1.24 830.2

The table below summarizes the total mineral resource (inclusive of reserves) for the Project (previously detailed in a press release date April 5, 2011).

NI 43-101 Mineral Resource Estimate for RDM Gold Project  
Open-Pit Measured   Indicated   Measured plus Indicated   Inferred  
  ktonnes Au
) Au
) ktonnes Au
) Au
) ktonnes Au
) Au
) ktonnes Au
) Au
Total 2,065 1.53   101.7   17,242 1.50   829.5   19,308 1.50   931.3   4,617 1.62   240.7  
Underground Measured   Indicated   Measured plus Indicated   Inferred  
) Au
)   Au
) Au
)   Au
) Au
)   Au
) Au
Total - -   -   52 3.18   5.3   52 3.18   5.3   4,830 2.23   346.6  
Total Open-Pit & Underground Measured   Indicated   Measured plus Indicated   Inferred  
) Au
)   Au
) Au
)   Au
) Au
)   Au
) Au
Total 2,065 1.53   101.7   17,294 1.50   834.4   19,360 1.50   936.6   9,557 1.92   587.3  
  • Base case cut-offs grades used in the mineral resource are 0.32 g/t Au for the open-pit and 1.0 g/t Au for the underground component of the mineralization. 
  • Open-pit resources are constrained within a pit-shell utilizing appropriate mining and processing costs and US$1,100/oz gold (see parameters listed below). The US$1,100 gold price is less than the two-year trailing average gold price.
  • Rounding of tonnes as required by reporting guidelines may result in apparent differences between tonnes, grade and contained metal content.

To develop the mineral resource, the GEMS(R) and GSLib software packages were used, for 3-d variography studies, grade interpolation of block models using ordinary kriging and validation procedures. To define the portion of the block model with reasonable prospects of being economic optimization software (Whittle Four-X) was used for the portion amenable to open-pit mining, using parameters obtained from the feasibility study, and a basic interpretation for the underground model, utilizing parameters from similar mines. The gold price reference used was US$1,100/oz. A base-case cut-off grade of 0.32 g Au/t was used for the open-pit resource estimate that is constrained by a 1,100 US$/oz gold Whittle pit-shell. To define the mineral resources below the open-pit resource envelope, a 1g/t gold-grade shell was built and a separate block model was prepared, excluding a 10 m crown pillar immediately below the resource open-pit. A basic engineering analysis was additionally used to exclude from the underground resource estimate zones that are too isolated or low grade to justify development.

The table below shows the open-pit mineral resource at various cut-off grades.

Open-Pit Resource Cut-Off grade versus Grade-Tonnage

Cut-Off Grade
Measured + Indicated  Inferred 
Au (g/t)   Au (g/t) Au (Koz)   Au (g/t) Au (Koz)
1.10 10,885 2.08 727.4 2,824 2.16 196.4
0.95 12,679 1.93 786.5 3,256 2.01 210.6
0.80 14,574 1.79 839.8 3,678 1.88 222.4
0.65 16,482 1.67 884.3 4,060 1.77 231.4
0.50 18,168 1.57 915.6 4,405 1.68 237.8
0.35 19,218 1.51 930.3 4,608 1.62 240.6
0.32 19,308 1.50 931.3 4,617 1.62 240.7

Mining, Production and Plant Feed

Mining will utilize owner operated conventional open-pit method with drill and blast backhoe excavators, haul trucks, and auxiliary mobile equipment to support a mining operation of a nominal 2.555 million tonnes per year of ore and a maximum of 27.7 million tonnes per year of waste. Total mineable mineral reserve amounts to 20.9 million tonnes of ore at a grade of 1.24 g/t Au with an operational strip ratio of 7.4 to 1. A combination of owner operated and contractor equipment will be used during the pre-production period.

The run-of mine ("ROM") ore will be hauled from the open-pit with 40 tonne haul trucks and dumped directly into the hopper that feeds the primary crusher at a rate of 7,000 tonnes per calendar day or 2.555 million tonnes per year. A small ore stockpile of 5,000 tonnes will be established at the primary crusher area in the event that the pit operation is stopped so that the crushing plant can continue to operate. 

A life of mine production schedule was prepared by pit phases and years to determine the requirements for the mine infrastructure development, the tonnes and grade of the ore, tonnes of waste rock and tonnes extracted by year. The distribution of ore and waste contained in each of the mining phases was used to develop the schedule, assuring that criteria such as continuous ore exposure, mining accessibility, and consistent material movements were met.

A marginal cut-off grade of 0.37 g/t Au that defines the separation between ore and waste was utilized to define the ore body. An operational cut-off, higher than the marginal cut-off was used as a strategy to increase the ore grade of the plant feed during the first two years of production.

The table below shows the mine production of ore and low-grade ore for each mining year. The schedule is based on 2,555 ktonnes of ore per year for plant feed. Year 3 considers a plant feed of 3,025 ktonnes to maintain the annual gold production above 90,000 per year. 

Mine Production Schedule
Mining Year Ore Low Grade Ore Waste ktonnes Total ktonnes Strip Ratio
Cut-Off Au(g/t) ktonnes Au (g/t) Au (koz) Cut-Off
Au (g/t)
ktonnes Au (g/t) Au
PP 0.56 704 1.195 27.0 0.37-0.56 354 0.462 5.3 17,942 19,000  
Y01 0.56 1,836 1.356 80.1 0.37-0.56 425 0.463 6.3 27,739 30,000 12.27
Y02 0.58 2,742 1.401 123.5 0.37-0.58 864 0.475 13.2 26,394 30,000 7.32
Y03 0.56 2,420 1.388 108.0 0.37-0.56 516 0.463 7.7 27,065 30,000 9.22
Y04 0.37 2,494 1.163 93.3 - - - - 27,506 30,000 11.03
Y05 0.37 2,555 1.224 100.5 - - - - 17,269 19,824 6.76
Y06 0.37 2,555 1.403 115.3 - - - - 14,051 16,606 5.50
Y07 0.37 2,555 1.285 105.6 - - - - 5,815 8,370 2.28
Y08 0.37 846 1.632 44.4 - - - - 515 1,361 0.61
Total   18,707 1.326 797.6   2,159 0.468 32.5 164,295 185,161  

The following table shows the process plant feed grade schedule.

 Process Plant Feed Schedule
Mining Year Plant Feed
Mined Ore Stockpile Rehandle Total Plant Feed
ktonnes Au (g/t) ktonnes Au (g/t) ktonnes Au (g/t) Au (koz) Gold
Gold (koz)
Y01 (*) 1,836 1.36 676 1.20 2,512 1.31 106 90 95
Y02 2,555 1.40 - - 2,555 1.40 115 90 104
Y03 2,369 1.39 186 1.37 2,555 1.39 114 90 103
Y04 2,494 1.16 531 0.61 3,025 1.07 104 90 93
Y05 2,555 1.22 - - 2,555 1.22 101 90 90
Y06 2,555 1.40 - - 2,555 1.40 115 90 104
Y07 2,555 1.29 - - 2,555 1.29 106 90 95
Y08 846 1.63 1,708 0.47 2,554 0.85 70 90 63
Total 17,766 1.33 3,100 0.70 20,866 1.24 830 90 747
(*) Y01 considers one month at 80% throughput and 11 months at 100% throughput (7,000 tonnes per day)

Metallurgy, Processing and Infrastructure


A series of test work utilizing core from the in-fill drilling program during 2008 to 2010 was performed to determine the Bond work index and gold recoveries of the ore. The results of the test work previously performed by Companhia Vale do Rio Doce ("CVRD", now named Vale) during the period of 1987 to 1997 was reviewed and utilized as references to the new test work. The results of the new test work showed a range of Bond work indices of 14.5 to 18.5 kW-h/t. The overall average gold recovery of the cyanide leach test work performed on sulphide ore was about 90%. The gold recoveries for the oxide and transitional ores consisting of about 4.0 million tonnes of the mineable reserve showed a range of about 95% to 98%. The gold recovery with and without the use of activated carbon was the same.

The cyanide destruction test work utilizing a metabisulphite and air system produced results of less than 1 ppm of total cyanide and 0.37 ppm of weak acid dissociable ("WAD") cyanide for the final tailing product.

Sedimentation tests that included non-ionic, anionic, and cationic flocculants showed that the anionic flocculant provided the best results to obtain a clear overflow and a final slurry density of 45% to 48%. The CIL system will be operated at about 40% solids for the sulphide ore and at about 35% solids for the oxide and transitional ores because of slight viscosity variations. 

Process Plant

The process plant is conventional with a primary jaw crusher, secondary and tertiary cone crushers in closed circuits with vibrating screens, a single stage ball mill in a closed circuit with cyclones, a CIL circuit, a cyanide destruction system, and an adsorption, desorption and recovery ("ADR") plant to produce gold bars with a gold content of about 95%. The final crushed product will be 100% passing 19mm and final product of the grinding circuit or the CIL feed will be 80% passing 53 microns. The processing rate of the plant will be 7,000 tonnes per calendar day at a head grade of 1.24 g/t Au and will average about 90% gold recovery. Approximately 7,780 ounces of gold will be produced on a monthly basis.

The leach circuit will consist of two agitated holding tanks and six agitated CIL tanks with air injection to provide about 24 hours of leaching time. Based on the test work, the oxygen content of the slurry will be about 8 ppm which is sufficient for efficient gold leaching. The content of activated carbon in the CIL circuit is 25kg per cubic metre of pulp. The carbon will be advanced three times per day for 45 minutes each time. Fresh activated carbon will be added in the last or sixth CIL tank.

The ADR plant will comprise an acid wash and neutralizing circuit, a pressure strip vessel, a carbon reactivation kiln, and the associated carbon holding tanks and carbon fines recovery system. The pregnant solution will flow from the strip vessel to electrowinning cells via a holding tank where the gold will plated onto stainless steel cathodes. The gold will be removed from the cathodes with high pressure washers and recovered with filters. The filter cake containing the gold will be dried and smelted to produce bars of gold bullion. The ADR plant is sized to process three tonnes of carbon per day at a grade of about 3,500 ppm.

The cyanide destruction circuit will consist of two agitated reactor tanks in series where the CIL tailing will be treated with air and metabisulphite to oxidize the total and WAD cyanides.

The reagents that will be utilized in the process will comprise: oxygen (air), activated carbon, sodium cyanide (liquid or big bags), bulk lime, sodium metabisulphite, caustic soda, hydrochloric acid, anionic flocculant, and anti-scalent. All of the reagents will be mixed with water to a specified concentration and introduced into the circuit as a solution or diluted slurry. Automated reagent dosage systems will be utilized to maintain the correct concentrations of the reagents in the process circuits.


The Project benefits from the infrastructure developed by the previous operator (Vale) who mined oxide gold-ore from a shallow open-pit until 1997. The terrain at the mine-site is of gentle relief and amenable to infrastructure development with the planned mine-site layout a compact design with pit-proximal process plant, Tailings Management Facility, and waste dump.

The electrical power for the project operations will be provided by upgrading the existing 33 km long 18.8 kV transmission power line to a 34.5 kV transmission line. The present 13.8 KV line will be used during the construction period. During operations, a 2.25 MW diesel fired generator for the supplemental power not provided by the transmission line. A standby generator will be installed as a back-up and a supply of emergency power. The peak demand of the process plant is calculated at 8.3 MW and the continuous running demand is calculated at 7.7 MW. The power will be distributed throughout the site at 13.8kV transmission lines.

The existing access to the mine-site is by a14 kilometre all weather compacted gravel road from the interstate paved highway.

The mine-site support facilities will include: a guarded gatehouse with an electronic entry system, an administration complex, mine work shop and offices, a process plant office work shop and offices, a metallurgical and assay laboratory complex, a process plant central control room, and a crushing facility local control room. The security system at the gold recovery area will be directly linked to the Military Police in Belo Horizionte and Janauba.

Capital and Operating Cost

The feasibility study is based on capital cost estimates of +/- 15% on solicited price and delivery quotations.

The following table outlines the Total capital cost for the project.

Pre-Production Capital (including majority of mine equipment acquisition for Y1 operation) Production Y1
US$ ('000's)
Production Y2 to Y8
US$ ('000s)
Total Capital US$ ('000s)  
PP Cost
US$ ('000s)
Site Preparation 2,758.0     2,758.0  
Mine Development (includes related earthworks & contractor costs) 25,650.0     25,650.0  
Mine Equipment* 27,095.5 4,386.5 17,658.6 49,140.6  
Civil Works 6,494.7     6,494.7  
Equipment and Bulk Materials 35,324.5     35,324.50  
Tailing Dam 6,087.1   3,363.1 9,450.2  
Waste Rock Stockpile 1,711.6   2,976.4 4,688.0  
Construction, Commissioning and Vendor Support 13,017.6     13,017.6  
Engineering and Project Management 13,240.0     13,240.0  
Owner's Cost 6,800.0     6,800.0  
Logistics and Transport 1,875.0     1,875.0  
Taxes (equipment and services) 6,382.1     6,382.1  
34.5 kV Power Transmission Line 3,200.0     3,200.0  
Contingency 10,700.0     10,700.0  
Subtotal 160,336.1 4,386.5 23,998.1 188,720.7  
Closure Cost       8,200.0  
Salvage Credit       (15,492.4 )
Total 160,336.1 4,386.5 23,998.1 181,428.3  
* Represents the up-front payments which the Corporation will be required to make in order to secure the long lead time mining equipment which must be on site for the start of operations in Year 1.  

The initial capital requirement is approximately US$160.3 million, which includes pre-production and construction costs of approximately US$ 145.0 million as well as 75% of Year 1 mining equipment purchases.

Operating Cost over the life of the project is projected to average US$558/oz gold. The unit costs on a per ore tonne are shown above in the economic analysis section of this press release.

The cash position of the Corporation as of December 31, 2010 is US$45.7 million. The Corporation also has an undrawn amount of US$22.5 million from a gold sales and purchase agreement with Macquarie Bank Limited ("Macquarie Bank") (see press release dated May 21, 2010). Additionally the Corporation has entered into financing arrangement mandates for up to US$97 million (see press release dated September 21, 2010).

The Corporation has already disbursed approximately US$12 million of the $160 Million referred to in the table above. These disbursements were for:

  1) the purchase of a 9,000 tonne per day comminution plant and ancillary equipment that include two cone crushers, one 9.3 MW ball mill complete with twin 4.65 MW synchronous motors and trommel, crushing conveyor, and cyclones with the spare parts, and;
  2) basic engineering and the start of the detailed engineering.

Additionally the Corporation has acquired all of the surface rights covering the footprint of the deposit and infrastructure and has obtained its initial environmental license.

The Corporation has also Retained Hatch Engineering to provide, Project, Procurement, and Construction Management for the development of the project. 

The schedule shows a project development time of about 18 months. Pending the completion of senior debt project financing arrangements and the timing thereof, which is beyond the control of the Corporation, in addition to the receipt of the Installation License for construction by June of this year, it is anticipated that the commercial production of gold could begin at the end of 2012.

The feasibility study was prepared by independent consultants, all qualified persons under NI 43-101, with collaboration of the Corporations technical team. The qualified persons have reviewed and approved the content of this press release. The following consultants participated in the study.

Tecnomin: under the direction of Altair Nolasco da Rocha (Project Co-coordinator, CREA 53.779/D MG), and Jackson Oliveira Bragança (CREA 19.590/D MG) (lead consultant for the overall Study and responsible for the design of the infrastructure and process plant and their capital cost and operating cost).

NCL: Carlos Guzmán, General Manager and Principal Mining Engineer (MAusIMM), (mineral reserves, open-pit mine design, production plan and scheduling, mine capital and operating cost) and Rodrigo Mello, Consulting Geologist (MAusIMM) (mineral resources).

Golder: Jose Mario Mafra, M.Sc., Civil and Geotechnical Engineer (CREA-MG – 18006/D) (geotechnical, water balance, pit slopes, waste rock stockpile, and tailing disposal design and all associated capital and operating costs).

John A. Wells, Metallurgical Consultant: Metallurgical Engineer (FSAIMM) (metallurgy and processing design and process flow sheet development in conjunction with Tecnomin and co-lead on the overall preparation of the Technical Report).

Mr. Titaro, P.Geo., is the qualified person for the Corporation.

The NI 43-101 compliant Technical Report will be filed on within 45 days.

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 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, which is in the final phase of a Feasibility Study, 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. 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.

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