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Carpathian Gold Inc. (TSX:CPN) (the
"Corporation" or "Carpathian") is pleased to announce
that it has agreed to acquire a ball mill and crushers (the
"Plant") for its Riacho dos Machados gold project in Minas Gerais,
Brazil (the "Project"). Total cost of the equipment and
technical information is US $9.0 million and will be paid out of the
Corporation's treasury. The Plant is new and is presently in original
manufacturers' shipping containers having originally been commissioned by
another mining company for a project that was not developed. Closing of
the acquisition is expected to take place on or about January 31st
2011.
This acquisition
secures a key component for the development of the RDM Gold Project and will
not only provide a savings to the overall capital expenditures of the
Project, but more importantly will save a substantial amount of lead-time
compared to the purchasing of a similar Plant, which would normally require
up to 16 months of delivery time. In addition, the purchase achieves an
important step towards the Corporation's objective of seeing the Project in
production in 2012.
The crushing and
grinding plant has a capacity of up to 9,000 tonnes
per day. The acquisition includes two HP500 cone crushers, a 9300kW
grinding mill, motors, ancillary equipment, spare parts, and detailed
technical information and engineered drawings. Although the current
Project studies call for a 7,000 tonne per day
facility, the Plant's additional capacity will facilitate increased
processing rates of potential ore expansion from future underground
operations, open pit extensions and for the discovery of any new satellite
deposits.
About Carpathian
The Corporation is
an exploration and development company whose immediate business interest is
to develop gold production in the near term at its 100% owned Riacho dos Machados Gold
Project in Brazil. Currently, the Feasibility Study for the RDM Gold
Project is being completed.
As the RDM Gold
Project is being developed to the production phase, the Corporation will
advance its exploration and development plans for its
100% owned Rovina Valley Au-Cu Project located in
Romania. When the Rovina Project is brought
into production, this will elevate the Corporation's gold output resulting in
it becoming a substantial mid-tier gold producer.
On a company wide
basis, the Corporation currently hosts NI 43-101 resources of 3.88 million
ounces of gold in the measured plus indicated categories and 4.58 million
ounces of gold in the inferred category plus 759.1 million pounds of copper
in the measured plus indicated category and 663.1 million pounds of copper in
the inferred category.
The Riacho dos Machados Gold
Project, for which a Feasibility Study is being completed, is targeted to
produce in the order of 100,000 ounces of gold per annum, with the initiation
of construction during the first half of 2011 and anticipated production
startup in late 2012.
Forward-Looking
Statements: This press release includes certain statements that may be deemed
"forward-looking statements". Forward-looking statements are
frequently characterized by words such as "plan",
"expect", "Project", "intend",
"believe", "anticipate", "estimate", and other
similar words, or statements that certain events or conditions
"may" or "will" occur. All statements in this release,
other than statements of historical facts, that address future exploration
drilling, exploration activities and events or developments that the
Corporation expects, are forward-looking statements. Although the Corporation
believes the expectations expressed in such forward-looking statements are
based on reasonable assumptions, such statements are not guarantees of future
performance and actual results or developments may differ materially from
those in forward-looking statements. Factors that could cause actual results
to differ materially from those in forward-looking statements include market
prices, exploitation and exploration successes, continued availability of
capital and financing, and general economic, market or business conditions.
There can be no assurance that forward-looking statements will prove to be
accurate, as results and future events could differ materially from those
anticipated statements. The Corporation undertakes no obligation to update
forward-looking statements if circumstances or management's estimates or
opinions should change. The reader is cautioned not to place undue reliance
on forward-looking statements.
The TSX does not
accept responsibility for the adequacy or accuracy of this news release.
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