TORONTO, ONTARIO--(Marketwired - Nov. 4, 2014) - Carpathian Gold Inc. (TSX:CPN) (the "Corporation" or "Carpathian") is providing the following update on its RDM gold mine (the "RDM Mine") in Brazil. The RDM Mine is 100% owned by the Corporation's wholly-owned subsidiary, Mineração Riacho dos Machados Ltda. ("MRDM").
Since March of this year, following re-instatement of the Autorização Provisória de Operação ("APO" or provisional operating license), MRDM has been completing infrastructure construction at the site while gradually ramping up production as part of the ongoing commissioning and ramping up process.
Total mine production for October as well as since mid-March is summarized as follows:
- In the month of October, 204,617 tonnes of ore were processed at an average grade of 1.23 g/t gold and at a recovery rate of 85.6%, resulting in the production of 6,903 oz. of gold, representing approximately 86% of planned production capacity of 8,000 oz./month;
- To the end of October of this year, MRDM has processed a total of 1,092,957 tonnes of ore at an average grade of 1.23 g/t gold and at an average recovery rate of 86.6%,producing 37,372 ounces gold; and
- As at the end of October, MRDM had shipped a total of 36,552 oz. of gold and 11,920 oz. of silver.
It is anticipated that monthly production figures will increase in the near term as the plant nears completion of the ramping up process. Management is also confident that it will be able to achieve the planned gold recovery rate of 90% once steady-state plant operations have been achieved.
As the RDM mine is still at the "ramping up" stage, we cannot provide cost per ounce data, as it would not constitute a reliable indicator of costs at the commercial production stage.
The process plant facility is almost completed save for final leach tank construction, with plant automation and equipment and power plant adjustments proceeding.
The RDM Mine is a conventional open pit operation of drill-blast-load-dump utilizing an owner-operated fleet and a mining contractor. The feasibility design pit is a single pit with LOM pit length of 1,800 metres. Mining activity began to ramp-up in mid-March with the bulk of ore mining activity occurring in the Central Pit zone. Run-of-mine (ROM) ore at RDM is currently defined with a cutoff grade of 0.63 g/t gold with ore greater than 0.32 g/t gold and less than 0.63 g/t gold stored in a stockpile. The following mining has occurred in this ramp-up phase:
- To the end of October, a total of 1,200,004 tonnes of ROM ore mined at an average grade of 1.19 g/t gold; and
- As at the end of October, stockpiled ore consisted of 909,521 tonnes at an average grade of 0.80 g/t gold which is segregated into high and low grade ore classes.
The RDM gold project is currently operating under a Autorização Provisória de Operação ("APO" or provisional operating license), which allows the project to operate and produce and sell gold during the interim period prior to receiving the Licença de Operação ("LO" or operating License). MRDM is proceeding with the requirements set-forth by the regulatory bodies, including SUPRAM and the Public Attorney's office, to complete the necessary inspections to receive the LO (the definitive operational permit).
Carpathian is an exploration and development company whose primary business interest is developing near-term gold production at its 100% owned Riacho dos Machados Gold Project in Brazil. In addition, it is also focused on advancing its exploration and development plans on its 100% owned Rovina Valley Au-Cu Project located in Romania.
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.
Carpathian Gold Inc.
Interim Chief Executive Officer
+1 (416) 363-3883
+1 (416) 368-7744 Ext. 233