TORONTO, ONTARIO -- (Marketwire) -- 02/28/13 -- Carpathian Gold Inc. (TSX: CPN) (the "Corporation" or "Carpathian") is pleased to provide an update on its wholly owned Riacho dos Machados Gold Project ("RDM" or "Project") located in the state of Minas Gerais, Brazil.
Project Construction and Development
-- The Project development remains on track for gold production in the second half of 2013 at an annualized rate of approximately 100,000 ounces for an initial period of +8 years.-- As of the end of February 2013, the construction and development of the project in order to commence the start of gold production is approximately 70% complete with the work force approaching a peak number of 1,000.-- The Project will mine 7,000 t/d of ore from an open pit operation and will treat ore utilizing a standard crush, grind and a CIL processing facility.-- A new reverse circulation drill rig dedicated for ore-control and short- term mine planning has been commissioned and is drilling in the pit.-- Waste removal and mining is progressing as planned and ore is currently being stockpiled for the start up of the process plant in the second half of this year.-- The tailing dam and tailing impoundment area construction is progressing with approximately 1/3 of the impoundment area now lined and will be ready to receive water for the operations in early April.-- All major equipment and ancillary material for the crusher systems and process plant are either on site or being delivered and being erected as per the schedule.-- The assay laboratory is on site and ready to operate.-- The upgrade of the power line to the Project is underway and remains on schedule.
As previously reported (January 16, 2013) an initial 5,720 metre exploration-drilling program was completed to evaluate on-strike near surface oxide gold mineralization both to the north and south of the open pit. These targets are a short distance from the crushing operations so that any new, economically viable, mineralized zone could easily be trucked to the processing facility that has excess capacity as it is a 9,000 t/d plant. The exploration program included soil geochemistry, rock-float sampling, trenching, auger drilling, and diamond core drilling. Three targets north, and one south of the mine were drill tested while several additional targets were scout drilled.
New assay results have been received for the Northwest Extension of the open pit and the Mata da Roca Target. Highlights are as follows:
-- Northwest Extension (Immediately north along strike of the Feasibility open pit) -- Diamond drill hole FNW-01 intersected 6 m with 0.70 g/t Au (46 - 52 m hole depth) -- Diamond drill hole FNW-03 intersected 4 m with 1.07 g/t Au (1 - 5 m hole depth)-- Mata da Roca 2 Target (8.4 km south of the pit) -- Diamond drill hole FMU-01 intersected 7 m with 2.09 g/t Au (21 - 28 m hole depth)
Assay results that were previously reported are as follows:
-- Cinco Mil Target (less than 1 km north of the pit) -- Trench TRCM1 with 11 metres (m) at 3.23 g/t Au -- Diamond drill hole FCM-13 intersected 11 m with 4.10 g/t Au (0-11 m hole depth, located below TRCM1)-- Manguinha Target (2 km north of the pit) -- Diamond drill hole FMG-05 intersected 11 m with 1.02 g/t Au (14-25 m hole depth) -- Diamond drill hole FMG-07 intersected 8 m with 1.34 g/t Au (31-39 m hole depth)