Carpathian Gold* (CPN : TSX : $0.41), Net Change: 0.01, % Change: 2.53%, Volume: 893,170
Still waiting on Romania. Carpathian Gold moved up on news that it has received the Licenca Previa (LP), the first of three
permits that allow Carpathian to proceed to build, develop and operate the wholly-owned Riacho dos Machados (RDM) gold
project in Minas Gerais State, Brazil. Specifically, the receipt of the LP allows Carpathian to initiate land works on the project,
such as pre-stripping, construction of the tailings dam and land clearing for the infrastructure. The definitive feasibility study is
progressing on-target for completion at the end of Q2/10. With feasibility study in hand, Carpathian will begin to work on
obtaining the Licenca Instalac o (LI) that will allow construction to begin on the project, expected July 2010. The final permit,
the Licenca Operac o (LO), which is the final permit required to operate the mine will be obtained when the construction of the
project is nearly complete. Additionally, a resource update and reserve estimate will be published concurrently with the
feasibility study. Drilling has successfully extended the existing resource 700 metres to the south and 150 metres to the north
from the existing 1,250-metre pit. The resource remains open along strike and down-dip. RDM currently hosts open pit
resources of 4.6 Mt M+I at 1.84 g/t Au for 268,800 oz Au plus 15.2 Mt inferred at 1.56 g/t Au for 762,700 oz Au using 0.3 g/t
cut-off. Relative to the previous preliminary economic assessment (PEA), Carpathian is looking at extended life, stronger
economics and underground potential, fast-tracking RDM as a producer of +100,000 oz/a at an average operating cash cost of
around US$450/oz. Additional catalysts: An improving mining investment climate in Romania may begin to crystallize the
value of Carpathian’s other asset, the PEA-level Rovina Valley gold-copper project. The project hosts at least three gold-copper
porphyry deposits along a 7.5-km NNE trend. The PEA is based on a resource estimate of 193.1 Mt measured and indicated
grading 0.49 g/t Au and 0.18% Cu for 3.07 Moz Au and 760 Mlb Cu plus 177.7 Mt inferred grading 0.68 g/t Au and 0.17% Cu
for 3.89 Moz Au and 663 Mlb Cu. Employing 40,000 t/d standard flotation should result in annual production over the first five
years amounting to 53.5 Mlb Cu at US$1.05/lb cash cost and 238,000 oz Au at US$483/oz cash cos