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Review of Carpathian’s 2010 Activities & Outlook for 2011 for the RDM Gold Project, Brazil (Toronto, Ontario – January 25, 2011) Carpathian Gold Inc. (CPN:TSX) (the “Corporation” or “Carpathian”) is pleased to announce that it has agreed to acquire a ball mill and crushers (the “Plant”) for its Riacho dos Machados gold project in Minas Gerais, Brazil (the “Project”). Total cost of the equipment and technical information is US $9.0 million and will be paid out of the Corporation’s treasury. The Plant is new and is presently in original manufacturers’ shipping containers having originally been commissioned by another mining company for a project that was not developed. Closing of the acquisition is expected to take place on or about January 31st 2011. This acquisition secures a key component for the development of the RDM Gold Project and will not only provide a savings to the overall capital expenditures of the Project, but more importantly will save a substantial amount of lead-time compared to the purchasing of a similar Plant, which would normally require up to 16 months of delivery time. In addition, the purchase achieves an important step towards the Corporation’s objective of seeing the Project in production in 2012. The crushing and
grinding plant has a capacity of up to 9,000 tonnes per day. The acquisition
includes two HP500 cone crushers, a 9300kW grinding mill, motors, ancillary
equipment, spare parts, and detailed technical information and engineered
drawings. Although the current Project studies call for a 7,000 tonne per day
facility, the Plant’s additional capacity will facilitate increased processing
rates of potential ore expansion from future underground operations, open pit
extensions and for the discovery of any new satellite deposits.
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 43-101 resources of 3.88 million ounces of gold in the measured plus indicated categories and 4.58 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 in early to 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.
----------------------------------------------------------------------------------------------------------------------- Dino Titaro, President & CEO, or Mike O’Brien, Manager Investor
Relations Fax. +1(416) 260-2243 e-mail: info@carpathiangold.com Montreal Tel. +1(514) 341-0408 or 1-866-460-0408 Seton Services, UK Tel. +44 207 224 8468 e-mail: toni@setonservices.co.uk 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. |