News

May 26, 2009

Carpathian Gold Sets Out On The Path To Production, Supported By A Million Ounces On The Riacho Dos Machados Project In Brazil

By Chris Cann

With the gold price pushing back towards US$950 an ounce it’s a fantastic time to announce that you’ve proven up significant gold resources. It’s even better if those new ounces are complemented by the relevant infrastructure and permits. And it’s better still if they occur at a place with a mining-friendly address. Such is the state of play at Toronto-listed Carpathian Gold, which released its initial NI 43-101 resource for the Riacho dos Machados (RDM) project in Minas Gerais State, Brazil on Monday 18th May. The estimate includes 1.01 million ounces in the inferred category and 290,000 ounces measured and indicated resources.

Almost 80 per cent of Carpathian’s entire resource falls within a projected open-pit shell designed using a 0.3 grams per tonne gold cut-off, industry relevant costs, and a gold price of US$800 an ounce.  Below the open-pit shell and excluding a 20 meter crown pillar, a higher-grade cut-off at one gram per tonne was used to define a resource for an underground operation.  RDM was last operated as an open-pit mine by CVRD until it was closed down in 1997 because of the dwindling gold...