TORONTO, ONTARIO-(Marketwire - Jan. 10, 2012) - Carpathian Gold Inc. (TSX:CPN) (the "Corporation" or "Carpathian") is content to provide a overview of the results and achievements for 2011 and it is capital expenditure and exploration work programs and outlook for 2012 for which it has allocated a complete budget of around $152 Million. The Corporation is pleased about the achievements it produced in 2011 on its two wholly owned assets: 1) Riacho dos Machados Gold Mining Project (the "RDM Mine" or "Project") in Brazil which is now in the mine construction phase and; 2) the Rovina Valley Project in Romania which can be currently undergoing a Pre-feasibility Study. Both of these projects supply the means for this provider to achieve its goal to become a gold producer inside near-term and advance its project pipeline toward a gold production profile of your mid-tier mining company.
Despite 2011 being a year of very unsettled and turbulent markets this provider was able to raise significant equity funds enabling it to succeed its two projects. These total funds are utilized for the on-going exploration and Pre-Feasibility Study for the Rovina Valley Project as well as provide the equity contribution necessary on the capital to construct the RDM Mine the location where the goal would be to commence gold production by mid-2013. To help achieve this goal, this business finalized at the end of 2011, a senior debt financing package dedicated for that construction in the RDM Mine.
To conclude, the Corporation achieved the following in 2011.
RDM Mine, Brazil:
Completed and announced and updated Resource Estimate along with the results of a bankable Feasibility Study;
Received environmentally friendly and construction permit for your construction in the Project, and:
Senior debt Project financing of $80 Million arranged.
Rovina Valley Project, Romania:
46,590 metres of drilling, mainly in the Ciresata porphyry in order to define the extent of the deposit in addition to upgrade resource categories about the Ciresata, Colnic and Rovina porphyry deposits in preparation for a updated Resource Estimate slated for 2012; [stone cone crusher for sale]
Additional drilling to provide geo-technical information in planning for a Pre-Feasibility Study slated for mid-2012, and;
Barrick Gold acquired a 9% desire for the Corporation for $20 Million dedicated exclusively for the advancement of the Rovina Valley Project.
Corporate:
Completed a $46 Million bought deal equity financing, and;
Approved a $152 Million afford 2012 of which approximately $136 Million is specialized in the construction of the RDM Mine.
Recommendations a brief summary of the 2011 objectives for that RDM Mine along with the Rovina Valley Project along with summary results and/or progress developments on both projects. magnetic separator for mineral
RDM Mine, Brazil
For 2011, this business established the subsequent goals:
complete an updated Resource Estimate;
complete a bankable Feasibility Study for the open-pit portion of the deposit;
complete the permitting process to allow for the construction of the Project;
proceed which has a construction decision, and;
evaluate the on-strike extension of the gold mineralization.
In April of 2011, this business announced an updated Resource Estimate as well as the results of its Feasibility Study.
The 2011 Resource Estimate highlights include (begin to see the Corporation's press release of April 5, 2011):
Measured plus Indicated mineral resource of 19.4 million tonnes at 1.50 g/t Au for 936,600 ounces of gold (open-pit plus underground), a rise of 15% through the 2010 Resource Estimate.
Inferred resource of 9.5 million tonnes at 1.93 g/t Au for 587,300 ounces of gold (open-pit plus underground), including inferred open-pit resource of four years old.6 million tonnes at 1.62 g/t Au for 240,700 ounces of gold.
Highlights of the feasibility study are listed below (see the Corporation's pr release of April 6, 2011):
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 in a mill throughput of approximately 7,000 tonnes every day utilizing conventional open-pit mining and crushing-grinding which has a CIL circuit and an ADR plant to recuperate the gold.
Average annual recoverable gold production of 93,400 ounces (100,000 ounces/year inside the first several years of operation).
Average cash operating cost on the life of mine of US$558 per ounce.
Pre-tax project net present value ("NPV") of US$150.8 million based on a 5% discount rate by using a gold expense of US$ 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 the IRR of 21.9%.
Estimated launch capital of US$160 million (R$2.00 to $US1.00).
Additional opportunities for future conversion of resources to reserves and resource growth, lowering of capital and increased mill feed grade.
Using near current spot prices of US$1,600 per oz of gold mining equipment, the after-tax NPV with different 5% discount rate is US$268.2 million by having an IRR of 36.5%. Using the release of the feasibility study results, the board of directors in the Corporation announced, on April 6, 2011 a choice to proceed with the development of the RDM Mine.
On November 28, 2011 the Corporation announced it had received official notice on the effect that this Licenca Instalacao ("LI"), allowing for the construction of the RDM Mine was granted. This business originally announced the governmental approval to the construction in the Project on September 16, 2011, but was later advised the COPAM (an environmental agency group) wished to further evaluate the technical data and therefore the construction activities with the Project were suspended for your Project until the approval of the license was granted and subsequently announced on November 28, 2011. While the suspension on the previous permission to proceed with construction with the Project was fairly short, it nonetheless resulted in an overall cumulative delay of that time period line for construction and gold production. The job suspension happened at the same time when the earthwork contractors would have been mobilizing. This delay led to limiting the task activity that might be carried out throughout the rainy season and the holiday season. This provider envisions that the RDM Mine will commence production by mid-2013.
The Corporation's goal to undertake an exploration drill program along strike in the open-pit deposit on several gold mineralized targets would not commence in the past year, predominantly as a result of delays in obtaining drilling permits, which delays were in connection with obtaining the LI, and also the Corporation's give attention to getting the necessary permits needed for the construction of the Project. This exploration drill program is scheduled to get started on towards the end with the first quarter of 2012.
Rovina Valley Project, Romania
The organization set out these objectives for 2011:
a drill program of around 35,000 metres (originally established at 20,000 metres but later increased in the past year), with the primary goals of: 1) expanding the size of the Ciresata gold-rich copper porphyry deposit and upgrading its inferred resources to the measured plus indicated resource categories, and; 2) in-fill drilling at the Rovina copper-gold porphyry deposit and the Colnic gold-rich copper porphyry deposits to up-grade the inferred resources on the measured plus indicated categories, all being incorporated into a updated Resource Estimate planned for 2012;
in addition on the planned drilling above, throughout the year an extra 15,000 m diamond drilling program was initiated to evaluate exploration/satellite porphyry targets for the Project,
initiate a Pre-Feasibility Study about the Project to be completed by mid-2012;
amend technical reports with comes from the 2011 drilling program including any related mine design impacts as well as the potential growth of the Ciresata deposit being incorporated into documentation required for the conversion with the Exploration License to your Mining License, and;
continue Environmental Impact Assessment ("EIA") and Social Impact Assessment ("SIA") programs all through the year as well as all long-lead time programs which will be required for permitting in the project.
During 2011, the organization completed a number of drill programs for 77 core holes totaling 46,590 metres. Nearly all this drilling, about 33,230 metres was completed on in-fill and lateral extension drilling on the Ciresata porphyry. At the Colnic porphyry 4,695 metres of in-fill drilling was also completed. Those two porphyries are now drilled off for reasons like an updated resource estimate. In late 2011, in-fill drilling commenced about the Rovina porphyry and 2,110 metres was done by the end of year. An additional 7,300 metres is going to be required to drill off this porphyry (for the resource update) that will be carried out in early 2012. As indicated above, this year's drill program for resource updating purposes was budgeted at 35,000 metres, however as a consequence of positive drill results this method will now total approximately 48,000 m.
Beyond the above drilling for that resource update, 8 drill holes totaling 2,140 metres of geotechnical drilling was also completed with the proposed Rovina and Colnic open-pits as part of the geotechnical work program to the Pre-Feasibility Study.
Through the latter section of 2011, the organization commenced a 15,000 metre exploration drill program to evaluate satellite targets for the property. Five drill-holes totaling 4,415 metres were completed by the end of year with a focus on testing potential extensions with the Ciresata deposit. The total amount of this drilling program is going to be carried out during 2012 and definately will focus on new porphyry targets for the Rovina Exploration License.
Some highlight intersections in the 2011 diamond-drill program on the Ciresata gold-rich porphyry are as follows:
Drill hole From (m) To (m) Length (m) Au (g/t) Cu (%) Au-eq* (g/t)
RGD-19 109 733 664 0.86 0.17 1.20
Including 173 386 213 1.24 0.24 1.73
also 289 337 48 1.59 0.29 2.19
RGD-21 147 773 626 0.92 0.19 1.32
Including 147 629 482 1.06 0.21 1.50
also 208 544 336 1.22 0.23 1.70
RGD-27 320 634 314 1.08 0.20 1.48
Including 343 408 65 1.49 0.25 2.01
RGD-41 314 884 570 0.77 0.19 1.16
Including 314 752 438 0.83 0.19 1.23
Including 321 491 170 1.08 0.19 1.48
Including 321 352 31 1.39 0.19 1.78
RGD-55 190 677 487 0.90 0.15 1.21
Including 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 tariff of US $1,000 plus a copper tariff of US $3.00/lb is employed. Metallurgical recoveries are not taken into account. This is consistent with the Au-eq. calculations the organization has used in their recent pr announcements for Ciresata. Understand the Corporations website at http://www.carpathiangold.com/ for drill hole locations and drill hole orientations.
A consortium of leading engineering groups and specialists, led by AGP Mining Consultants Inc. ("AGP"), was selected in 2011 to complete a Pre-feasibility Study around the Project, specifically for the Ciresata, Colnic and Rovina porphyries. AGP has also been retained to finish an updated resource estimate for your three porphyry deposits incorporating new drill hole data from 2010 to 2012. This new database will incorporate an additional 46 step out and in-fill drill hole results on the Ciresata deposit, the in-fill drill comes from the Colnic deposit as well as the on-going in-fill drilling comes from the Rovina deposit. It can be expected that the resource update will likely be completed in the other quarter of 2012 with all the Pre-Feasibility Study results announced within the 3rd quarter of 2012.
A consortium of Romanian certified consultants are actually retained with the Corporation to accomplish the studies and still provide a report needed by the National Agency of Mineral Resources ("NAMR") for conversion from the Rovina Exploration License to a Mining License. These studies include resource-reserve assessments, mining and processing evaluations, environmental-social baselines and risk assessments, and health & safety evaluations. The technical area of the report were initially completed in early 2011 and were to be submitted to the NAMR; however, along with cooperation while using NAMR, the anticipated positive impact from the 2011 drill program which could increase the gold-copper resources with the Ciresata deposit led to a mutual agreement to feature the 2011 Ciresata drill ends in the Mining License Application prior to the conversion to a Mining License. This revised report work is near completion in fact it is expected this report will probably be submitted to the NAMR by the end of the first quarter of 2012.
As well as the technical fieldwork, this provider, through its wholly owned operating subsidiary in Romania, continued to take care of its proactive local stakeholder engagement programs. Such as local community hall public meetings, a public information centre and partnership programs with local NGO's (partly funded with the European Union) and community leaders to implement community-based projects. The good relations with all the community have allowed unhindered surface access for drilling within the project area which requires permission from landowners. Moreover, throughout the year this business continued having its long lead time work activities for both EIA and SIA documentation that will be required for the permitting in the project.
2011 Corporate Activity
In the Corporate Level the subsequent achievements were realized next year.
On July 18, 2011 the organization announced a strategic private placement with Barrick Gold Corporation ("Barrick") for the CDN$20 Million private placement, which gave Barrick an equity interest in the Corporation of around 9% at that time. The results of the private placement can be exclusively applied to the exploration and development develop the Rovina Valley Project.
On October 5, 2012, the Corporation announced who's would get into a committed arrangement with Macquarie Bank Limited ("Macquarie Bank") to get a Project Loan Facility (the "Facility") ranging from US$75 to US$97 million and associated currency and commodity price protection facilities to fund the construction and growth and development of the RDM Mine. On December 14, 2011, the Board of Directors in the Corporation and Macquarie Bank consented to enter into final documentation for the Facility of US$80 million. Together with this the Corporation, through Macquarie Bank, also applied for price protection programs in the form of currency swaps for the Project's CAPEX (R$1.90 to $US1.00) and OPEX (R$1.983 to $US1.00) in addition to a gold price protection program made up of 216,600 ounces of gold (approximately 26% from the open-pit reserves) at a price of US$1,600 per ounce. It is expected how the Facility documentation will likely be completed during the first quarter of 2012 understanding that the first draw down from the Facility will probably be around April 2012, when the Corporation has funded its share of Project expenditures through its equity.
On November 29, 2011, the organization announced it closed a bought deal equity financing of $46 Million, using the majority of the proceeds to be utilized for the construction and development of the RDM Mine.
On December 14, 2011, the Board of Directors approved a 2012 consolidated budget of $152.4 Million ones approximately $136 Million will likely be used for from the and development of the RDM Mine, approximately $12 Million to the exploration and additional development of the Rovina Valley Project along with the balance for corporate expenditures. The 2012 funding requirement will probably be provided for by the US$80 Million Project Loan Facility, (net proceeds of around US$74.0 Million), current cash of approximately CDN$96 Million and in-the-money warrants of approximately $2.5 Million.
2012 Outlook
The Corporation's priorities will expedite from the and development of the RDM Mine as well as to continue to advance and expand the time at the Rovina Valley Project. As well as the Corporation will continue to evaluate every other opportunities that could add significant shareholder value.
The subsequent lists the major objectives for every of the RDM Mine along with the Rovina Valley Project for 2012.
2012 Objectives for your RDM Mine, Brazil
Construct and develop the open-pit area of the Project all year round and into 2013 on an anticipated commencement of production by mid-2013.
Embark with an exploration drill program (approximately 6,000 metres) primarily on-strike of the open-pit mineralization to outline additional shallow resources for future growth and extending the mine life of the Project.
Evaluation studies for the exploitation of deeper resources by using an underground operation with the aim of adding approximately 50% more mineable material approximately nearly through the open-pit mining operation.
Continue EIA and SIA programs all year round.
2012 Objectives for your Rovina Valley Project, Romania
Obtain final approval for your conversion in the Exploration License to your Mining License.
Complete the in-fill drilling program for the Rovina porphyry (approximately 7,300 metres).
Continue using the exploration drilling on new potential porphyry targets on the property (approximately 10,600 metres).
Complete an updated resource estimate.
Complete a Pre-Feasibility study.
Convert the Exploration License to your Mining License.
Continue EIA and SIA programs throughout the year as well as all long-lead time programs that'll be required for permitting of the project.
source:mining.com
Initiate the detailed permitting process so that you can put the project into production.
Further information on the Corporation and also the individual projects is found on the Corporation's website at www.carpathiangold.com andwww.sedar.com.
Mr. Titaro could be the qualified person (as defined in National Instrument 43-101) overseeing the structure and implementation with the present exploration programs. He could be responsible for preparing the technical information contained in this news release.
About Carpathian
This provider is an exploration and development company whose primary business interest is developing near-term gold production on its 100% owned Riacho dos Machados Gold Mining Project ("RDM Mine") in Brazil, which is currently centering on activities surrounding permitting and construction, along with progressing its exploration and development plans on its 100% owned Rovina Valley Au-Cu Project situated in Romania. On a company wide basis, this provider currently hosts NI 43-101 resources of four.0 million ounces of gold inside measured plus indicated categories and 4.5 million ounces of gold inside the inferred category, and also 759.1 million pounds of copper inside measured plus indicated category and 663.1 million pounds of copper inside the inferred category.
The RDM Mine is aiimed at produce inside 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 being a mid-tier gold producer.
Forward-Looking Statements: This pr release includes certain statements which may be deemed "forward-looking statements". Forward-looking statements are often characterized by words including "plan", "expect", "Project", "intend", "believe", "anticipate", "estimate", and other similar words, or statements that particular events or conditions "may" or "will" occur. All statements with this release, aside from statements of historical facts, that address future exploration drilling, exploration activities and events or developments the Corporation expects, are forward-looking statements. Even though Corporation believes the expectations expressed in such forward-looking statements depend on reasonable assumptions, such statements are certainly not guarantees of future performance and actual results or developments varies materially from those involved with forward-looking statements. Factors that can cause actual leads to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued option of capital and financing, and general economic, market or business conditions. There may be no assurance that forward-looking statements will 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. Your reader is cautioned to never place undue reliance upon forward-looking statements.
Despite 2011 being a year of very unsettled and turbulent markets this provider was able to raise significant equity funds enabling it to succeed its two projects. These total funds are utilized for the on-going exploration and Pre-Feasibility Study for the Rovina Valley Project as well as provide the equity contribution necessary on the capital to construct the RDM Mine the location where the goal would be to commence gold production by mid-2013. To help achieve this goal, this business finalized at the end of 2011, a senior debt financing package dedicated for that construction in the RDM Mine.
To conclude, the Corporation achieved the following in 2011.
RDM Mine, Brazil:
Completed and announced and updated Resource Estimate along with the results of a bankable Feasibility Study;
Received environmentally friendly and construction permit for your construction in the Project, and:
Senior debt Project financing of $80 Million arranged.
Rovina Valley Project, Romania:
46,590 metres of drilling, mainly in the Ciresata porphyry in order to define the extent of the deposit in addition to upgrade resource categories about the Ciresata, Colnic and Rovina porphyry deposits in preparation for a updated Resource Estimate slated for 2012; [stone cone crusher for sale]
Additional drilling to provide geo-technical information in planning for a Pre-Feasibility Study slated for mid-2012, and;
Barrick Gold acquired a 9% desire for the Corporation for $20 Million dedicated exclusively for the advancement of the Rovina Valley Project.
Corporate:
Completed a $46 Million bought deal equity financing, and;
Approved a $152 Million afford 2012 of which approximately $136 Million is specialized in the construction of the RDM Mine.
Recommendations a brief summary of the 2011 objectives for that RDM Mine along with the Rovina Valley Project along with summary results and/or progress developments on both projects. magnetic separator for mineral
RDM Mine, Brazil
For 2011, this business established the subsequent goals:
complete an updated Resource Estimate;
complete a bankable Feasibility Study for the open-pit portion of the deposit;
complete the permitting process to allow for the construction of the Project;
proceed which has a construction decision, and;
evaluate the on-strike extension of the gold mineralization.
In April of 2011, this business announced an updated Resource Estimate as well as the results of its Feasibility Study.
The 2011 Resource Estimate highlights include (begin to see the Corporation's press release of April 5, 2011):
Measured plus Indicated mineral resource of 19.4 million tonnes at 1.50 g/t Au for 936,600 ounces of gold (open-pit plus underground), a rise of 15% through the 2010 Resource Estimate.
Inferred resource of 9.5 million tonnes at 1.93 g/t Au for 587,300 ounces of gold (open-pit plus underground), including inferred open-pit resource of four years old.6 million tonnes at 1.62 g/t Au for 240,700 ounces of gold.
Highlights of the feasibility study are listed below (see the Corporation's pr release of April 6, 2011):
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 in a mill throughput of approximately 7,000 tonnes every day utilizing conventional open-pit mining and crushing-grinding which has a CIL circuit and an ADR plant to recuperate the gold.
Average annual recoverable gold production of 93,400 ounces (100,000 ounces/year inside the first several years of operation).
Average cash operating cost on the life of mine of US$558 per ounce.
Pre-tax project net present value ("NPV") of US$150.8 million based on a 5% discount rate by using a gold expense of US$ 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 the IRR of 21.9%.
Estimated launch capital of US$160 million (R$2.00 to $US1.00).
Additional opportunities for future conversion of resources to reserves and resource growth, lowering of capital and increased mill feed grade.
Using near current spot prices of US$1,600 per oz of gold mining equipment, the after-tax NPV with different 5% discount rate is US$268.2 million by having an IRR of 36.5%. Using the release of the feasibility study results, the board of directors in the Corporation announced, on April 6, 2011 a choice to proceed with the development of the RDM Mine.
On November 28, 2011 the Corporation announced it had received official notice on the effect that this Licenca Instalacao ("LI"), allowing for the construction of the RDM Mine was granted. This business originally announced the governmental approval to the construction in the Project on September 16, 2011, but was later advised the COPAM (an environmental agency group) wished to further evaluate the technical data and therefore the construction activities with the Project were suspended for your Project until the approval of the license was granted and subsequently announced on November 28, 2011. While the suspension on the previous permission to proceed with construction with the Project was fairly short, it nonetheless resulted in an overall cumulative delay of that time period line for construction and gold production. The job suspension happened at the same time when the earthwork contractors would have been mobilizing. This delay led to limiting the task activity that might be carried out throughout the rainy season and the holiday season. This provider envisions that the RDM Mine will commence production by mid-2013.
The Corporation's goal to undertake an exploration drill program along strike in the open-pit deposit on several gold mineralized targets would not commence in the past year, predominantly as a result of delays in obtaining drilling permits, which delays were in connection with obtaining the LI, and also the Corporation's give attention to getting the necessary permits needed for the construction of the Project. This exploration drill program is scheduled to get started on towards the end with the first quarter of 2012.
Rovina Valley Project, Romania
The organization set out these objectives for 2011:
a drill program of around 35,000 metres (originally established at 20,000 metres but later increased in the past year), with the primary goals of: 1) expanding the size of the Ciresata gold-rich copper porphyry deposit and upgrading its inferred resources to the measured plus indicated resource categories, and; 2) in-fill drilling at the Rovina copper-gold porphyry deposit and the Colnic gold-rich copper porphyry deposits to up-grade the inferred resources on the measured plus indicated categories, all being incorporated into a updated Resource Estimate planned for 2012;
in addition on the planned drilling above, throughout the year an extra 15,000 m diamond drilling program was initiated to evaluate exploration/satellite porphyry targets for the Project,
initiate a Pre-Feasibility Study about the Project to be completed by mid-2012;
amend technical reports with comes from the 2011 drilling program including any related mine design impacts as well as the potential growth of the Ciresata deposit being incorporated into documentation required for the conversion with the Exploration License to your Mining License, and;
continue Environmental Impact Assessment ("EIA") and Social Impact Assessment ("SIA") programs all through the year as well as all long-lead time programs which will be required for permitting in the project.
During 2011, the organization completed a number of drill programs for 77 core holes totaling 46,590 metres. Nearly all this drilling, about 33,230 metres was completed on in-fill and lateral extension drilling on the Ciresata porphyry. At the Colnic porphyry 4,695 metres of in-fill drilling was also completed. Those two porphyries are now drilled off for reasons like an updated resource estimate. In late 2011, in-fill drilling commenced about the Rovina porphyry and 2,110 metres was done by the end of year. An additional 7,300 metres is going to be required to drill off this porphyry (for the resource update) that will be carried out in early 2012. As indicated above, this year's drill program for resource updating purposes was budgeted at 35,000 metres, however as a consequence of positive drill results this method will now total approximately 48,000 m.
Beyond the above drilling for that resource update, 8 drill holes totaling 2,140 metres of geotechnical drilling was also completed with the proposed Rovina and Colnic open-pits as part of the geotechnical work program to the Pre-Feasibility Study.
Through the latter section of 2011, the organization commenced a 15,000 metre exploration drill program to evaluate satellite targets for the property. Five drill-holes totaling 4,415 metres were completed by the end of year with a focus on testing potential extensions with the Ciresata deposit. The total amount of this drilling program is going to be carried out during 2012 and definately will focus on new porphyry targets for the Rovina Exploration License.
Some highlight intersections in the 2011 diamond-drill program on the Ciresata gold-rich porphyry are as follows:
Drill hole From (m) To (m) Length (m) Au (g/t) Cu (%) Au-eq* (g/t)
RGD-19 109 733 664 0.86 0.17 1.20
Including 173 386 213 1.24 0.24 1.73
also 289 337 48 1.59 0.29 2.19
RGD-21 147 773 626 0.92 0.19 1.32
Including 147 629 482 1.06 0.21 1.50
also 208 544 336 1.22 0.23 1.70
RGD-27 320 634 314 1.08 0.20 1.48
Including 343 408 65 1.49 0.25 2.01
RGD-41 314 884 570 0.77 0.19 1.16
Including 314 752 438 0.83 0.19 1.23
Including 321 491 170 1.08 0.19 1.48
Including 321 352 31 1.39 0.19 1.78
RGD-55 190 677 487 0.90 0.15 1.21
Including 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 tariff of US $1,000 plus a copper tariff of US $3.00/lb is employed. Metallurgical recoveries are not taken into account. This is consistent with the Au-eq. calculations the organization has used in their recent pr announcements for Ciresata. Understand the Corporations website at http://www.carpathiangold.com/ for drill hole locations and drill hole orientations.
A consortium of leading engineering groups and specialists, led by AGP Mining Consultants Inc. ("AGP"), was selected in 2011 to complete a Pre-feasibility Study around the Project, specifically for the Ciresata, Colnic and Rovina porphyries. AGP has also been retained to finish an updated resource estimate for your three porphyry deposits incorporating new drill hole data from 2010 to 2012. This new database will incorporate an additional 46 step out and in-fill drill hole results on the Ciresata deposit, the in-fill drill comes from the Colnic deposit as well as the on-going in-fill drilling comes from the Rovina deposit. It can be expected that the resource update will likely be completed in the other quarter of 2012 with all the Pre-Feasibility Study results announced within the 3rd quarter of 2012.
A consortium of Romanian certified consultants are actually retained with the Corporation to accomplish the studies and still provide a report needed by the National Agency of Mineral Resources ("NAMR") for conversion from the Rovina Exploration License to a Mining License. These studies include resource-reserve assessments, mining and processing evaluations, environmental-social baselines and risk assessments, and health & safety evaluations. The technical area of the report were initially completed in early 2011 and were to be submitted to the NAMR; however, along with cooperation while using NAMR, the anticipated positive impact from the 2011 drill program which could increase the gold-copper resources with the Ciresata deposit led to a mutual agreement to feature the 2011 Ciresata drill ends in the Mining License Application prior to the conversion to a Mining License. This revised report work is near completion in fact it is expected this report will probably be submitted to the NAMR by the end of the first quarter of 2012.
As well as the technical fieldwork, this provider, through its wholly owned operating subsidiary in Romania, continued to take care of its proactive local stakeholder engagement programs. Such as local community hall public meetings, a public information centre and partnership programs with local NGO's (partly funded with the European Union) and community leaders to implement community-based projects. The good relations with all the community have allowed unhindered surface access for drilling within the project area which requires permission from landowners. Moreover, throughout the year this business continued having its long lead time work activities for both EIA and SIA documentation that will be required for the permitting in the project.
2011 Corporate Activity
In the Corporate Level the subsequent achievements were realized next year.
On July 18, 2011 the organization announced a strategic private placement with Barrick Gold Corporation ("Barrick") for the CDN$20 Million private placement, which gave Barrick an equity interest in the Corporation of around 9% at that time. The results of the private placement can be exclusively applied to the exploration and development develop the Rovina Valley Project.
On October 5, 2012, the Corporation announced who's would get into a committed arrangement with Macquarie Bank Limited ("Macquarie Bank") to get a Project Loan Facility (the "Facility") ranging from US$75 to US$97 million and associated currency and commodity price protection facilities to fund the construction and growth and development of the RDM Mine. On December 14, 2011, the Board of Directors in the Corporation and Macquarie Bank consented to enter into final documentation for the Facility of US$80 million. Together with this the Corporation, through Macquarie Bank, also applied for price protection programs in the form of currency swaps for the Project's CAPEX (R$1.90 to $US1.00) and OPEX (R$1.983 to $US1.00) in addition to a gold price protection program made up of 216,600 ounces of gold (approximately 26% from the open-pit reserves) at a price of US$1,600 per ounce. It is expected how the Facility documentation will likely be completed during the first quarter of 2012 understanding that the first draw down from the Facility will probably be around April 2012, when the Corporation has funded its share of Project expenditures through its equity.
On November 29, 2011, the organization announced it closed a bought deal equity financing of $46 Million, using the majority of the proceeds to be utilized for the construction and development of the RDM Mine.
On December 14, 2011, the Board of Directors approved a 2012 consolidated budget of $152.4 Million ones approximately $136 Million will likely be used for from the and development of the RDM Mine, approximately $12 Million to the exploration and additional development of the Rovina Valley Project along with the balance for corporate expenditures. The 2012 funding requirement will probably be provided for by the US$80 Million Project Loan Facility, (net proceeds of around US$74.0 Million), current cash of approximately CDN$96 Million and in-the-money warrants of approximately $2.5 Million.
2012 Outlook
The Corporation's priorities will expedite from the and development of the RDM Mine as well as to continue to advance and expand the time at the Rovina Valley Project. As well as the Corporation will continue to evaluate every other opportunities that could add significant shareholder value.
The subsequent lists the major objectives for every of the RDM Mine along with the Rovina Valley Project for 2012.
2012 Objectives for your RDM Mine, Brazil
Construct and develop the open-pit area of the Project all year round and into 2013 on an anticipated commencement of production by mid-2013.
Embark with an exploration drill program (approximately 6,000 metres) primarily on-strike of the open-pit mineralization to outline additional shallow resources for future growth and extending the mine life of the Project.
Evaluation studies for the exploitation of deeper resources by using an underground operation with the aim of adding approximately 50% more mineable material approximately nearly through the open-pit mining operation.
Continue EIA and SIA programs all year round.
2012 Objectives for your Rovina Valley Project, Romania
Obtain final approval for your conversion in the Exploration License to your Mining License.
Complete the in-fill drilling program for the Rovina porphyry (approximately 7,300 metres).
Continue using the exploration drilling on new potential porphyry targets on the property (approximately 10,600 metres).
Complete an updated resource estimate.
Complete a Pre-Feasibility study.
Convert the Exploration License to your Mining License.
Continue EIA and SIA programs throughout the year as well as all long-lead time programs that'll be required for permitting of the project.
source:mining.com
Initiate the detailed permitting process so that you can put the project into production.
Further information on the Corporation and also the individual projects is found on the Corporation's website at www.carpathiangold.com andwww.sedar.com.
Mr. Titaro could be the qualified person (as defined in National Instrument 43-101) overseeing the structure and implementation with the present exploration programs. He could be responsible for preparing the technical information contained in this news release.
About Carpathian
This provider is an exploration and development company whose primary business interest is developing near-term gold production on its 100% owned Riacho dos Machados Gold Mining Project ("RDM Mine") in Brazil, which is currently centering on activities surrounding permitting and construction, along with progressing its exploration and development plans on its 100% owned Rovina Valley Au-Cu Project situated in Romania. On a company wide basis, this provider currently hosts NI 43-101 resources of four.0 million ounces of gold inside measured plus indicated categories and 4.5 million ounces of gold inside the inferred category, and also 759.1 million pounds of copper inside measured plus indicated category and 663.1 million pounds of copper inside the inferred category.
The RDM Mine is aiimed at produce inside 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 being a mid-tier gold producer.
Forward-Looking Statements: This pr release includes certain statements which may be deemed "forward-looking statements". Forward-looking statements are often characterized by words including "plan", "expect", "Project", "intend", "believe", "anticipate", "estimate", and other similar words, or statements that particular events or conditions "may" or "will" occur. All statements with this release, aside from statements of historical facts, that address future exploration drilling, exploration activities and events or developments the Corporation expects, are forward-looking statements. Even though Corporation believes the expectations expressed in such forward-looking statements depend on reasonable assumptions, such statements are certainly not guarantees of future performance and actual results or developments varies materially from those involved with forward-looking statements. Factors that can cause actual leads to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued option of capital and financing, and general economic, market or business conditions. There may be no assurance that forward-looking statements will 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. Your reader is cautioned to never place undue reliance upon forward-looking statements.
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