Carpathian Provides Update on Mine Construction and Development Progress on the RDM Project, Brazil "Remains on track with 2013 Production"
TORONTO, ONTARIO -- (Marketwire) -- 10/01/12 -- Carpathian Gold Inc. (TSX:CPN) (the "Corporation" or "Carpathian") is pleased to report that it is in the process of finalizing documentation with Macquarie Bank Limited to increase the Project Loan Facility for its wholly owned Riacho dos Machados Gold Project (the "Project" or "RDM Project"), Brazil from gross proceeds of US$80 Million (see press release dated January 10, 2012) to gross proceeds of US$90 Million.
The following provides an overview progress update on the development of the Project as of the date of this press release.
-- The Project remains on track with the overall construction and
development time-line schedule for gold production in the second half of
2013. Approximately 45% of the Project is completed to date. Essentially
all major contract items have been signed off or ready for sign-off.
-- Optimized mine production plan has been completed which shows
approximately 100,000 ounces of gold production on an annual basis,
scheduled to commence in the second half of 2013. The process plant
start-up is still scheduled for June/July 2013.
-- Earth works for the process plant infrastructure areas are 95% complete
and ready for the installation of civil works followed by the erection
of the structural steel and installation of the 9,000 tpd crushing and
grinding line equipment, which is on site.
-- The earthworks for waste rock stockpile area is completed and is
receiving the pre-strip material and pre-production waste rock from the
open pit area that is currently being excavated by contract mining.
-- Hiring and basic training programs for the project personnel from the
local region are virtually completed. All senior project staff members
have been hired.
-- The owner mine fleet and excavation equipment is on site. The ADR plant
is being shipped to site as per schedule. Two Atlas Copco sampling
drills are in transit to the site as per schedule.
-- Engineering and design plans for the lining of the tailing impoundment
area, which is an extra scope for the Project, have been completed.
Construction of the tailing dam and impoundment area is scheduled to
commence in October.
With essentially all major contract items signed off and/or ready to sign off, the overall Project budget is being optimized and updated monthly based on work completed and committed contracts to incorporate the additional scope of environmental work and the lining of the tailings impoundment area. The Project budget is monitored and adjusted where appropriate on a monthly basis to best incorporate the additional scope items to the Project.
Two on-strike exploration targets are currently being drill tested; Cinco Mil, approximately 2 km north of the open-pit and Mato da Roca 2, approximately 13 km south of the open-pit. Assay results are pending and will be reported when available. Several other targets have been identified on the Project and will be evaluated at a later date. The objective of the drill programs is to identify shallow open pit material to truck to the mill facility for either expanded yearly production and/or extended mine life.
The Corporation will continue to post regular updates on its website on the construction and development advancement of the Project.
About Carpathian
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 focusing on activities surrounding permitting and 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.
October 1, 2012 (Source: Stockhouse)
http://www.stockhouse.com/news/canadianreleasesdetail.aspx?n=8628038
Disclosure: Carpathian Gold Inc. is a Vulture Bargain Candidate of Interest (VBCI). Members of the GGR team are actively accumulating and may hold long positions in CPN.T.
