Project Details

Large Au-Cu Resource Base

  •  7.19 MM oz Au & 1.42 Billion lbs Cu in the Measured + Indicated Categories
  •  0.33 MM oz Au & 97.0 MM lbs Cu in the Inferred Category

Attractive project economics from 2010 PEA that is being updated with pre-feasibility study

  • ~200,000 oz Au & ~50 MM lb Cu average annual production over 19 yr mine life (avg. 343,500 Au Eq ounces/year)
  • Standard flotation process producing a saleable Cu concentrate
  • NPV10% of US $1.1 Billion; 37.1% IRR (pre-tax) at US $1,450/oz Au & US $3.00/lb Cu (Based on 2010 PEA study economics

Good location in a mining jurisdiction

  • Golden Quadrilateral (>55 MM oz of historic gold production) re-emerging as a new modern mining district  
  • Substantial infrastructure (roads, water and power)
  • Government needs investment and sustainable growth
  • 16% corporate tax rate

Excellent Value Proposition

  • Region attracting foreign mining companies for gold and base metals (i.e., Barrick, Newmont, and Eldorado)
  • Eldorado proceeding with development of the Certej gold deposit

The Rovina License lies within the Metalliferi Mountains, in the southern part of the Apuseni Mountains, in the area known as the Golden Quadrilateral. The License is strategically located approximately 20 km outhwest of Rosia Montana and adjacent to the western border of the Apuseni 1 license. This license hosts porphyry copper-gold targets and Rosia Montana deposit style (+15,000,000 million ounces).

Initial reconnaissance mapping and sampling was completed in late 2005. This license includes 5 known mineralized prospects. Mapping and sampling by Carpathian identified copper-gold mineralized potassic-porphyry style alteration outcropping at two of these prospects, Rovina and Colnic, which lie 2.5 km apart.

The copper-gold mineralization at the Rovina and Colnic prospects is hosted in altered porphyritic microdiorite containing magnetite in thin veinlets and as disseminated granular agglomerates and secondary biotite consistent with potassic alteration at the core of gold-rich porphyry hydrothermal systems. This alteration is cut by quartz-chalcopyrite-pyrite stock work veinlets. Geologic mapping has identified large halos of pyrite-sericite alteration (phyllic alteration) typically associated with porphyry systems.

In 2006, a total of 66 drill holes were completed for 24,140 metres between the Colnic and Rovina Porphyry systems, along with metallurgical testwork, and a detailed QA/QC program. In addition, in 2006 a generative exploration program was completed, comprised 24 square km of ground magnetic survey in the northern part of the Rovina License including the Rovina and Colnic Porphyry systems, 15 line kilometres of Induced Polarization Surveys, 12.7 line km of soil geochemistry surveys, and reconnaissance mapping and outcrop sampling covering an area of 5 square kilometers. This program identified a minimum of three new porphyry targets (coincidental geophysical, geological, porphyry style alteration and stock work systems with Au & Cu mineralization), within a prospective 6.5 km long volcanic belt inclusive of the Colnic and Rovina porphyry systems. These are the Galaxy target (2.2 km west of the Rovina porphyry); the Ciresata target (4.5 km south-southwest of the Colnic porphyry); and the Baroc target (200 m to the west of the Rovina porphyry).

From the 2006 drilling program an initial National Instrument 43-101 compliant Resource Estimate, has been provided to Carpathian by independent consultants AMEC Americas Limited’s (“AMEC”) for both the Colnic and Rovina porphyries. For both porphyries the Mineral Resources reported are confined to a Whittle 4x-generated conceptual pit shell to determine the amount of potentially mineable open pit mineralization using various economic assumptions. The Colnic resource estimate is divided into gold-copper (“Au-Cu”) mineralization (with block model of Cu grades greater than 500 ppm) and gold (“Au”) only mineralization (with block model Cu grades less than 500 ppm). The Rovina resource estimate is entirely comprised of Au-Cu mineralization.

During 2007, 86 diamond drill holes were completed for a total of 32,500 metres on the Rovina Exploration License. This drilling program included definition drilling on both the Rovina and Colnic porphyries, as well as drilling on the Galaxy and Ciresata porphyry targets that were discovered during the previous generative exploration program and generative exploration drilling on additional targets. 

During Q3 2008, field work on the Rovina Exploration License was comprised predominantly of diamond drilling. This drilling program consisted of 4 diamond drill holes (2,511 m) on the Ciresata Porphyry and 3 diamond drill holes (1,114 m: one drill hole on each porphyry) for the collection of core samples to be submitted at a later date for further metallurgical test work studies. During the quarter, approximately 4,111 core samples were collected and submitted for assay analysis, QA/QC analysis, check sample analysis, metallurgical test work and rock density analysis. Additionally geological modelling and preparation work for the updated Mineral Resource Estimate was completed.

On a year to date basis in 2008, drilling has been primarily concentrated on the Rovina Porphyry and the newly discovered Ciresata Porphyry located approximately 4 km south of the Colnic Porphyry. To date in 2008, the Corporation has completed 31 diamond drill holes on the Rovina License for a total of approximately 14,720 metres of which 16 diamond drill holes (7,625 m) were completed on the Rovina Porphyry and 14 drill holes (6,830 m) on the Ciresata Porphyry and 1 hole (270 m) on the Colnic Porphyry. All three deposits are in close proximity to one another and could be processed from one central facility. PEG has estimated the Mineral Resource for each of the Colnic, Rovina and Ciresata porphyry deposits, utilizing approximately 62,700 m of diamond drill hole data from the 2006, 2007 and 2008 drilling campaigns. The resource estimate takes into account all drilling information for the Rovina and Colnic deposits up to the end of April 2008 and on the Ciresata deposit up to the middle of September 2008.

The following table summarizes the weighted average result of the resource estimates for all three porphyry deposits reported at a base case cut-off grade of 0.30% copper equivalent (“Cu eq”) for the Rovina deposit, 0.45 g/t gold equivalent (“Au eq”) for the Colnic deposit and 0.70 g/t Au eq for the Ciresata deposit, as of September 30, 2008. The base case cut-off grades chosen for each respective deposit were determined by giving consideration to the characteristics of each deposit, envisioned mining methods, approximate mining and milling costs derived from internal studies as well as comparable porphyry-type deposits, results from early metallurgical test work and the reasonable potential for them to be economic.

Rovina Valley Project 2012 Mineral Resource Estimate at base case cut-off grades
(as of July 15, 2012)

ResourceTonnageAuCuGoldCopperAu eq*
Category(MM t)(g/t)(%)(MM oz)(MM lbs)(MM oz)
Rovina (open-pit)31.80.360.300.37209.00.91
Colnic (open-pit)29.40.640.120.6175.00.80
Ciresata (underground)29.70.860.160.82105.01.09
Total Measured90.90.620.191.81389.02.80
Rovina (open-pit)
Colnic (open-pit)106.30.470.101.59226.02.18
Ciresata (underground)135.10.720.153.15435.04.26
Total Indicated315.00.530.155.381,031.08.03
Total Measured + Indicated405.90.550.167.191,420.010.84
Comparison to 2008 Resource Estimate+ 110%+12.2%-11.1%+134%+87%+113%
Rovina (open-pit)
Colnic (open-pit)3.80.320.
Ciresata (underground)9.60.670.140.2129.00.28
Total Inferred26.80.380.160.3397.00.58
Comparison to 2008 Resource Estimate-85%-43.7%-3.1%-92%-85%-90%
  • *Au eq. determined by using a gold price of US$1,370 per ounce and a copper price of US3.52/lb. These prices are the 3-year trailing average as of July 10th, 2012. Metallurgical recoveries are not taken into account for Au eq.
  • Base case cut-off used in the table are 0.35 g/t Au eq. for the Colnic deposit and 0.25% Cu eq for the Rovina deposit, both of which are amenable to open-pit mining and 0.65 g/t Au eq. for the Ciresata deposit which is amenable to underground bulk mining.
  • For the Rovina and Colnic porphyries, the resource is an in-pit resource derived from a Whittle shell model using gross metal values of $1,350/oz Au price and $3.00/lb Cu price, net of payable amounts after smelter charges and royalty for net values of US$1,313/oz Au and US$2.57/lb Cu for Rovina and US$2.27/Ib Cu for Colnic).
  • A grade-tonnage vs cut-off grades table for each of the deposits is shown at the end of this news release.
  • Rounding of tonnes as required by reporting guidelines may result in apparent differences between tonnes, grade and contained metal content.

For the 2012 Resource Estimate consideration as to the reasonable potential for the RVP to be economic was taken into account and was derived from the following parameters. For the Rovina and Colnic porphyry deposits, which are planned to be mined with open-pit mining methods, the resource estimates were constrained within a pit shell using the Lerch-Grossman pit optimizer algorithm in Minesight software using net metal values of $1,313/oz for gold and US$2.27 to US$2.57/lb for copper (copper values varies by deposit and the metal values used are less than the three year trailing average). Mining costs, pit-slope angles, metallurgical recoveries with payable gold and copper were taken into account as well as royalties based on the PEA Study (details shown below under Resource Estimate Input parameters and Assumptions). Base case cut-off grades considered results from the PEA Study and the on-going pre-feasibility study and are expressed in gold-equivalent (“Au eq”) grade for the Colnic and Ciresata deposits and copper-equivalent (“Cu eq”) grade for the Rovina deposit. A 0.25% copper equivalent (“Cu eq”) was used for the Rovina deposit and 0.35 g/t gold equivalent (“Au eq”) for the Colnic deposit. The Ciresata deposit which is planned to be mined with bulk tonnage underground mining methods, utilized a base cut-off grade of 0.65 g/t Au eq to calculate the resource estimate for this deposit. Design information derived from the on-going pre-feasibility study was also applied.

At both the Rovina and Colnic deposits, there are higher-grade portions of each deposit that outcrop at surface. These areas represent potential “starter pits” that will be developed to maximize the early extraction of higher-grade gold and copper mineralization (see grade cut-off vs tonnes and grade tables at the end of the news release). As an example, the higher-grade mineralization at Colnic contains measured plus indicated resources at >0.70 g/t Au eq of 51.5 million tonnes at 0.73 g/t Au and 0.12% Cu. At the Rovina deposit, the higher-grade mineralization contains measured plus indicated resource at >0.50% Cu eq of 25.3 million tonnes at 0.51 g/t Au and 0.35% Cu. Ciresata has continuous zone of high-grade gold and copper mineralization in the core of the deposit that persists at depth that is suitable for extraction with an underground bulk-mining method. At Ciresata, the measured plus indicated resource of this core at >1.0 g/t Au eq contains 65.4 million tonnes at 1.01 g/t Au and 0.18% Cu. It is these higher-grade areas that are the focus for the early stages of mining for the on-going pre-feasibility study.

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