Northeastern Hungary includes a part of the Inner Carpathian volcanic arc, which is host to significant epithermal gold deposits in neighboring Slovakia, Ukraine, and the prolific gold deposits of Romania. The Tokaj Mountains include many occurrences of hydrothermal-altered volcanic rocks that have not been explored for bulk mineable gold deposits. Past gold production is limited to historic exploitation of narrow veins at Telkibanya in the Tokaj Mountains during the medieval period. In addition, Hungary is host to a segment of an older volcanic arc, which contains a porphyry copper deposit and an overlying high-sulphidation epithermal gold deposit at Resck (1.5 million ounce Au resource) in the Matra Mountains.

Carpathian Gold holds two Exploration Licences, the Fuzzeradvany Concession (80%) and the Kanasvar Exploration License (100%)through two of its wholly owned Hungarian subsidiaries. In August of 2008 these 2 licenses have been joint ventured to CARACAL, a subsidiary of Electrum Ltd.,a global gold group with over 80 Exploration projects worldwide.