Carpathian Provides Update on Mine Construction and Exploration

TORONTO, ONTARIO–(Marketwire – May 22, 2012) – Carpathian Gold Inc. (TSX:CPN) (the “Corporation” or “Carpathian”) wishes to provide the following Corporate and Project updates.


At the annual and general meeting of shareholders held on May 10, 2012, all resolutions for the re-election of directors and the auditors of the Corporation were overwhelmingly approved by a large turnout of shareholder votes. The results of the votes can be found on

The Corporations is well capitalized to execute on its 2012 work objectives. Below is a brief summary update on the construction/development progress on the Riacho dos Machados gold project in Brazil, as well as the exploration efforts both in Brazil and on the Rovina Valley Project in Romania, where a total of 5 drill rigs are carrying out the Corporations exploration programs. The Corporation will post regular updates on its website on the construction advancement of the Riacho dos Machados Project.

Riacho dos Machados Project, Brazil

  • The project remains on track with the construction and development time-line schedule and budget.

  • Optimized mine production plan has been completed which indicates 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 2013.

  • The majority of the large construction related contracts are in place with any outstanding equipment, service, and material supply contracts to be awarded in the coming weeks as per schedule. To date approximately 80% of all major contracts have been signed and/or final negotiations have been completed. For the balance of the major contracts consisting of civil works, electrical-mechanical installation and the power line and substation RFPs have been issued and will be evaluated in accordance with the development schedule.

  • Engineering development for the mine, process plant and infrastructure has been completed, and engineering for the power supply line is progressing on schedule.

  • Access road upgrade to site has been completed on schedule and in compliance with the environmental license.

  • Clearing, grubbing, earth works, and the initial tailing dam construction to begin in late May during dry season as scheduled.

  • The construction management contract has been awarded to Conestoga Rovers Associados, who is currently on-site directing the construction activities.

  • The mine development contractor will also begin in late May as scheduled.

  • Hiring and basic training programs for the project personnel from the local region are currently underway. The training program for mobile equipment operators and equipment maintenance is in place. All senior project staff members have been hired as of mid-last year.

  • The 9,000 tpd crushing and grinding line equipment is on-site, ahead of schedule.

  • Delivery of owner owned mine fleet and ancillary heavy equipment is on schedule for staggered delivery up to June, as scheduled.

  • On-strike exploration targets have been selected and exploration drilling (approximately 6,000 m) is currently underway with 1 drill rig to evaluate future growth potential to the mining operation.
Rovina Valley Project, Romania
  • The resource delineation-definition drill program for use in Resource Estimate update has just been completed and includes 89 drill holes for 54,404 metres of diamond core.

  • Resource estimate update is being completed and still on schedule for release in Q2, 2012 and will include a total of 244 drill holes for 117,096 metres diamond core.

  • The pre-feasibility study is well underway and on track for release in late Q3/early Q4, 2012 and is following the mining scenario whereby the three proximal Au-Cu porphyry deposits are mined by a single integrated operation.

  • Documentation requirements for the conversion of the exploration license to a mining license are still on track for submittal to the appropriate government bodies by the end of the summer. It could take several months once the documentation has been handed in for the conversion process to be completed.

  • Analysis of scope and content requirement for an Environmental Impact Assessment Study is underway for future permitting requirements.

  • Approximately 6,000 m of exploration drilling on new porphyry targets on the license in progress with 4 drill rigs operating and results will be released as the drilling progresses.

Mr. Titaro is the qualified person (as defined in National Instrument 43-101) overseeing the design and implementation of the projects. He is responsible for preparing the technical information contained in this news release.

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 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 4.0 million ounces of gold (212,460 Kt at 0.58 g/t Au) in the measured plus indicated categories and approximately 4.5 million ounces of gold (187,147 Kt at 0.74 g/t Au) in the inferred category, as well as 759.1 million pounds of copper (193,100 Kt at 0.18% Cu) in the measured plus indicated category and 663.1 million pounds of copper (177,700 Kt at 0.17% Cu) in the inferred category (see press releases dated November 17, 2008 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.

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.