Carpathian Reports RDM Project Now Over 80% Completed With Gold Production Expected by the End of the 3rd Quarter, 2013
TORONTO, ONTARIO--(Marketwired - June 4, 2013) - Carpathian Gold Inc. (TSX:CPN) (the "Corporation" or "Carpathian") is pleased to provide an update on its progress towards completion of its wholly owned Riacho dos Machados Gold Project ("RDM" or "Project") located in the state of Minas Gerais, Brazil. A video that shows the development of the Project as of the end of April is available on the Corporation's website at www.carpathiangold.com.
Project Construction and Development
- Development of the Project remains on schedule for gold production, expected to commence by the end of the 3rd quarter of 2013.
- The Project will produce approximately 100,000 ounces of gold on an annualized basis for an initial period of +8 years.
- As of the end of May, the construction and development of the project is approximately 82% complete with a peak work force of approximately 1,300 people. To date there has been approximately 2.0 million man-hours of work on the Project with no loss time injuries.
- The Project will treat 7,000 t/d of ore from an open pit operation utilizing a standard crush, grind, CIL and ADR processing facility. The extraction rate of the mine for the combined waste plus ore will be about 2.1 million tones per month.
- The gold production line (crushing to smelting) is well advanced with crushers running and being commissioned.
- Two new reverse circulation drill rigs dedicated for ore control and short-term mine planning are in operation for use for grade control procedures. Ore is currently being stockpiled for the start-up of the process plant.
- Waste removal is progressing at full capacity and stockpiling of waste is within the planned Project schedule.
- The tailing dam and impoundment area construction is nearing completion and will be ready to receive water for the operation this month.
- The assay laboratory is fully functioning and treating approximately 250 samples per day for ore grade control purposes.
"This is an exciting time for Carpathian as the RDM Project is now nearing its scheduled completion of construction in order to commence gold production and be the next gold producer in Brazil", said Chairman and CEO, Mr. Dino Titaro. "We commenced grubbing and clearing of the site less than 11 months ago with expected gold production by the end of the third quarter of this year. The mine building and operating experience of our on-site management team and our employees and contractors has allowed us, to date, to progress the Project on schedule within a short construction time line."
"While the price of gold has significantly declined over the past few months and is currently meeting resistance at the $1,400 level, we are fortunate that the Project was designed using a $950 gold price and that we had entered into protective measures for the Project, including the selling forward of approximately 216,000 ounces of gold at $1,600 per ounce. We also have a loan facility arrangement with Macquarie Bank for US $90 million to build the Project and to date we have only drawn down approximately $62.5 million dollars with the scope to scope project budget remaining on track".
When the Project is in its initial production phases, the Corporation will provide guidance as to the gold production forecast for 2013 and its forecasted cash cost and total cash cost. On an annualized basis, it is expected that the total cash cost for the project will be below industry average.
Further details on the Corporation and a video link on the development progress of the RDM construction can be found on www.carpathiangold.com.
Mr. Titaro is the qualified person (as defined in National Instrument 43-101) overseeing the design and implementation of the present exploration programs. He is responsible for preparing the technical information contained in this news release.
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 focused on 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: 26.8 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.
Forward-Looking Statements: Statements and certain information contained in this press release and any documents incorporated by reference may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation which may include, but is not limited to, information with respect to the Corporation's expected production from, and further potential of, the Corporation's properties; the Corporation's ability to raise additional funds; the future price of minerals, particularly gold and copper; the estimation of mineral reserves and mineral resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Often, but not always, forward-looking statements/information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements/information is based on management's expectations and reasonable assumptions at the time such statements are made. Estimates regarding the anticipated timing, amount and cost of exploration and development activities are based on assumptions underlying mineral reserve and mineral resource estimates and the realization of such estimates are set out herein. Capital and operating cost estimates are based on extensive research of the Corporation, purchase orders placed by the Corporation to date, recent estimates of construction and mining costs and other factors that are set out herein.
Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Carpathian and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include: uncertainties of mineral resource estimates; the nature of mineral exploration and mining; variations in ore grade and recovery rates; cost of operations; fluctuations in the sale prices of products; volatility of gold and copper prices; exploration and development risks; liquidity concerns and future financings; risks associated with operations in foreign jurisdictions; potential revocation or change in permit requirements and project approvals; competition; no guarantee of titles to explore and operate; environmental liabilities and regulatory requirements; dependence on key individuals; conflicts of interests; insurance; fluctuation in market value of Carpathian's shares; rising production costs; equipment material and skilled technical workers; volatile current global financial conditions; and currency fluctuations; and other risks pertaining to the mining industry. Although Carpathian has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein or incorporated by reference are made as of the date of this presentation or as of the date of the documents incorporated by reference, as the case may be, and Carpathian does not undertake to update any such forward-looking information, except in accordance with applicable securities laws. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers are cautioned not to place undue reliance on forward-looking information. The forward-looking information contained or incorporated by reference in this document is presented for the purpose of assisting shareholders in understanding the financial position, strategic priorities and objectives of the Corporation for the periods referenced and such information may not be appropriate for other purposes.
The TSX does not accept responsibility for the adequacy or accuracy of this news release.