Carpathian drills 0.63 g/t Au, 0.14% Cu over 709 m

2010-11-22 07:22 ET - News Release

Mr. Dino Titaro reports

CARPATHIAN INTERSECTS 709 M OF 0.63 G/T AU & 0.14% CU, & EXTENDS MINERALIZATION 300 M BELOW PREVIOUS DRILLING IN ROMANIA

Carpathian Gold Inc. has released additional results from its deep drill hole program at the Ciresata Au-Cu porphyry deposit, one of three proximal Au-Cu porphyry deposits discovered by Carpathian that comprise the 100-per-cent-owned Rovina Valley project (RVP) in west-central Romania. Results from drill hole RGD-18, the third of the deep drill hole program at the Ciresata porphyry, have been received.

Carpathian has also commenced a planned 20,000-metre drill program for the Ciresata deposit to continue to upgrade the present inferred resource to the measured and indicated category, define mineralization limits, and test satellite targets.

The Ciresata porphyry system is a blind deposit that begins 40 to 140 m below surface. Hole RDG-18 was collared 70 m north of RGD-17 and drilled vertically for 980.2 m. This drill hole is the northernmost of the three completed deep drill holes with the stronger portion of the mineralized section of the porphyry first encountered at a relatively greater depth of 170 m and extending to a much greater depth of 930 m down hole, as compared with the previous two deep drill holes. RGD-18, intercepted 709 m at 0.63 gram per tonne Au and 0.14 per cent Cu and includes several higher-grade intervals within this intersection.

                                                                 Au Eq (i)
Drill hole     From (m)  To (m)  Length (m)   Au (g/t)   Cu (%)      (g/t)

RGD-18 (ii)        221     930         709       0.63     0.14       0.92
Including          309     890         581       0.66     0.15       1.00
                   320     483         163       0.74     0.13       1.02
And                717     831         114       0.81     0.16       1.15

(i)  To estimate Au Eq (gold equivalent), a gold price of $1,000 (U.S.) 
     and a copper price of $3.00 (U.S.) per pound are used. This is 
     consistent with the Au Eq calculations the corporation has used in 
     its recent press releases for Ciresata.
(ii) RGD-18 located on drill fence 1110N and drilled vertical to 980.2 m
     depth; drill hole location is shown on drill hole location map at
     the company's website.

Drill hole RGD-18 extends the known Au-Cu mineralization at the Ciresata porphyry approximately 300 m below previous nearby drilling and approximately 270 m below the resource estimate block model used in the preliminary economic assessment dated March 23, 2010. Below the block model, at a vertical down-hole depth of approximately 669 m, this hole encountered 221 m of 0.66 g/t Au and 0.15 per cent Cu from 669 m to 890 m, including 114 m of 0.81 g/t Au and 0.16 per cent Cu from 717 m to 831 m.

"We are very pleased with the results of the deep drilling program at the Ciresata porphyry, the highest gold-grade porphyry of the Rovina Valley project porphyry cluster, as it has extended mineralization 280 to 300 metres below the previous drilling and supports our belief of significant resource growth potential at Ciresata," said Dino Titaro, president and chief executive officer of Carpathian." In addition, drill hole intersections such as in RGD-17 highlight the high-grade gold tenor of Ciresata and the potential of further drilling to positively impact the recently completed NI 43-101-compliant preliminary economic assessment study released on March 23 this year." Mr. Titaro adds that, "In addition to a significant drilling program planned for Ciresata, we look forward to initiating feasibility studies and obtaining a mining licence for the Rovina Valley project in 2011."

Deep drill hole program

Carpathian has now completed the three deep drill hole program within the Ciresata deposit as outlined earlier this year. This deposit is defined by an initial 43-101-compliant inferred resource estimate based on 15 widely spaced drill holes to a nominal maximum depth of 650 m below the surface. Several of the previous drill holes ended in mineralization and the objective of the three deep drill hole program was two-fold: 1) to test the depth extension of this mineralization in the context of using a bulk underground mining method as outlined in the recently released positive results of an NI 43-101-compliant PEA (see news in Stockwatch March 23, 2010); and 2) to confirm the resource and geologic model for the deposit in the upper part of the drill holes as well as test for depth and lateral extensions to the mineralization.

The three deep drill hole program, consisting of holes RGD-16, RGD-17 and RGD-18, is located along a north-south line over a distance of 170 m from within the core of the Ciresata deposit extending to the northern portion of the deposit. The results of this drilling program have successfully met the objectives of the program as defined above by adding significant depth extensions of gold and copper mineralization below previous drilling in addition to verifying and upgrading the grade tenor of the inferred resource estimate. Results of these three deep drill holes have added 280 to 300 m depth extension of Au-Cu mineralization below the previous drilling. Highlights from the two previous drill holes, RGD-16 and RGD-17 (previously released in Stockwatch Sept. 8 and May 11, 2010), include 716 m at 1.14 g/t Au and 0.16 per cent Cu from drill hole RGD-17.

                                                                 Au Eq (i)
Drill hole     From (m)  To (m)  Length (m)   Au (g/t)   Cu (%)      (g/t)

RGD-17(ii)         160     876         716       1.14     0.16       1.47
Including          216     460         244       1.70     0.22       2.15
RGD-16(ii)         142     933         791       0.63     0.14       0.91
Including          316     524         208       1.13     0.19       1.53

(i)  To estimate Au Eq (gold equivalent), a gold price of $1,000 (U.S.) 
     and a copper price of $3.00 (U.S.) per pound are used. This is 
     consistent with the Au Eq calculations the corporation has used in 
     its recent press releases for Ciresata.
(ii) RGD-16, 17 and 18 are located on a north-south line in the centre 
     of the known deposit with the following northing co-ordinates: 
     513212, 513313 and 513381 respectively. A drill hole location map 
     is available at the company's website.

Background: PEA study

This study outlines the plan to mine the Rovina and Colnic porphyry Au-Cu deposits by open pit methods focusing on the high-grade cores of these deposits as they extend to the present surface. The blind and higher-grade Ciresata Au-Cu porphyry deposit will be mined by bulk underground mining methods. The results of the PEA study highlighted additional upside potential for the resource growth at the Ciresata deposit, which is the objective of the deep drill hole program. This program will test for depth extensions of the mineralization and provide infill drill hole data useful for upgrading the present resource category from inferred to indicated. A summary of the PEA results is provided with further details found in Stockwatch March 23, 2010.

Highlights of the study include:

• Average annual gold production of 238,000 ounces per year for the first five years and averaging 196,000 ounces per year over the mine life of 19 years, for a total of 3.72 million ounces of recoverable gold over the life of mine (LOM).

• Average annual copper production of 53.5 million pounds for the first five years and averaging 49.4 million pounds per year over the 19-year mine life, totalling 938 million pounds of recoverable copper over LOM.

• Total gold equivalent ounces produced over the 19-year mine life is 6.22 million.

• Total operating cash cost of $379 (U.S.) per ounce with copper as a byproduct credit and $483 (U.S.) per ounce gold ounce on a co-product basis (copper cash cost is $1.05 (U.S.) per pound on a co-product basis).

• At near spot metal prices of $1,000 (U.S.) per ounce gold and $3.00 (U.S.) per pound copper the net present value is $1.13-billion (U.S.) based on a 5-per-cent discount rate.

• Project internal rate of return (IRR) of 24.2 per cent, with a 3.3-year payback on an initial project capital expenditure of $509.4-million (U.S.), at a gold price of $1,000 (U.S.) per ounce and copper price of $3.00 (U.S.) per pound.

Sample protocol

All samples collected from any program in Romania are prepared and analyzed at the independent ALS Romania SRL Laboratory in Gura Rosiei, Romania, owned and operated by ISO certified ALS-Chemex Laboratory, using industry standard fire assay techniques for gold on 50-gram sample charges with AAS finish. Copper is analyzed using the industry-standard method of aqua-regia digest on a 0.40-gram subsample with an AAS finish. Coarse blanks, pulp blanks, pulp duplicates, core twins, and certified gold and copper standards are inserted on a routine basis. They consist of 15 per cent of submitted samples. In addition, coarse rejects from 3 per cent of the samples are periodically resubmitted for analysis. For the current drill program a minimum of 3 per cent of sample pulps are analyzed at the ISO certified OMAC Laboratory in Ireland for check assays. The drill assays reported in this press release are from split HQ- and NQ-size diamond core with the remaining half retained for reference. All holes at Ciresata deposit are sampled at one-metre intervals through the mineralized zone and two-metre intervals in the upper barren zone.

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.

We seek Safe Harbor.