Carpathian Gold Inc. (TSX:CPN) is a mineral exploration company that is focused on the development and exploration of two advanced gold and gold + copper projects with the goal of becoming a gold producing company in mid 2012.
Currently, Carpathian has an advanced gold project in the state of Minas Gerais, Brazil and a gold + copper project within the Apuseni Mountains of Central Romania, which combined host +12 million gold equivalent ounces in all resource categories.
The project in Brazil is referred to as the RDM Gold Project which hosts a NI 43-101 resource of 1.5 million ounces (in all resource categories) of which 1.0 million falls within an open pit. A completed Preliminary Economic Assessment in August 2009 on the open pit portion of the resource only, indicated the project can be 6,000 t/d, convention CIL operation producing an average of 102,000 ounce per year for an initial mine life of 7.1 years. At a gold price of $1000 gold the project has an after tax NPV7.5 of US$143.0 million and an after tax IRR of 41%. Carpathian is in to feasibility and production stage with management expectation of commencing production in mid 2012.
In Romania, Carpathian has discovered a world class size gold-rich, copper porphyry system referred to as the Rovina Valley Project (RVP). The global mineral resource (NI 43-101 compliant) of this system, based on drilling results from 2006 through 2008, totals 10.7 million gold equivalent ounces (all resource categories) of which 7 million is gold only. The preliminary economic assessment (March 2010) for the RVP Project has been released and is very positive.
Carpathian has extensive exploration and operation teams in both Brazil and Romania working towards the advancement and development of these two projects.
Romania is particularly well endowed with metallic ore deposits: gold has been mined in Romania since pre-Roman times and the country has been one of the most important producers of precious metals in Europe. Carpathian Gold, through its Romanian subsidiary, holds the Rovina license in the Golden Quadrilateral mining district of Romania.
The richest concentration of gold in Romania has been in the Apuseni Mountains, in this area which has historically produced in excess of 55.0 million ounces of gold from epithermal deposits, and ranks as one of the richest epithermal gold producing regions of equivalent size in the world.
Recent exploration within the Golden Quadrilateral by Gabriel Resources at their Rosia Montana deposit has identified a proven plus possible gold reserve of 16 million ounces. Also within the Golden Quadrilateral, European Goldfields has recently announced a drill-indicated gold resource of 3.5 million ounces on their Certej deposit.
Rovina Valley Au-Cu Project, Romania
- Located in Romania’s Golden Quadrilateral with historic Au production of
over 55 M oz.
- NI 43-101 Mineral Resource (Colnic, Rovina & Ciresata porphyries) of:
– Measured + Indicated: 3,070,000 oz Au & 759 million lbs Cu
– Inferred: 3,890,000 oz Au & 663 million lbs Cu
– Global Resource*: 10,750,000 oz Au eq***
- Deposits still open and not yet been fully delineated.
– Positive Preliminary Economic Assessment
– 40,000 tpd mining with standard flotation processing
– Ave. 343,600 Au-eq1ounces/yr over a 19 yr mine life
– NPV5 $1.130 billion (@ US$1000/oz gold price & US$3.00/lb Cu)
– IRR, 24% (@ US$1000/oz gold price & US$3.00/lb Cu)
- All infrastructure, including road, power and water, adjacent to the deposit
- Still open in all directions, Drill Hole RGD-17, 716 m at 1.14 g/t Au &0.16% Cu.
- 20,000 metres of drilling started in Dec 2010 on Ciresata deposit and satellite targets on RVP licence
- Exploration license to be converted to Mining license in early 2011
The Riacho dos Machados (RDM) Gold Project is in southeastern Brazil approximately 540km north of Belo Horizonte in Minas Gerais State, one of Brazil’s oldest and most important mining states. The project consists of a single 1000 – hectare mining concession and 12 exploration areas totaling 21,000 hectares. The mining concession includes surface rights ownership for 266.6 hectares and has significant mining infrastructure inherited from an open-pit oxide heap leach gold operation (Mina de Ouro Fino) that was operated from 1989-1997 by Companhia Vale do Rio Doce (“Vale”), Brazil’s largest mining company.
This permitted brownfield gold project has an historical resource (from Vale) consisting of 560,000 ozs Au with 3.8 million tonnes at 4.6 g/tAu and an upside exploration target potential of 5-15 million tones of 3.0 to 4.5 g/tAu.
Riachos dos Machados Gold Project (RDM)
- Permitted brownfield gold project with an updated NI 43-101 Mineral Resource (July 2010) of:
– Measured + Indicated: 812.3 koz Au (200% increase)
– Inferred: 692.9 koz Au
– Global Resource*: 1,505,200 oz Au
- Robust Preliminary Economic Assessment & Near-term OP
production (July 2009)
– An initial open pit operation at 6,000 tpd
– Avg. 102,000 ounces/yr over initial 7.1 yr mine life
– NPV7.5 ,143.0 million (after tax @ US$1000/oz gold price)
– IRR, 41% (after tax @ US$1000/oz gold price)
– Low start-up capital, attractive “economic grades” with excellent
cash flow and short payback period.
- Existing infrastructure, roads, power, water & ownership of surface rights.
- Currently in the feasibility stage , expected Q4 2010
- Exploration upside: Deposit open at depth and along strike with identified extension targets along strike (drilling currently in progress).
Board of Directors and Key Management
|Mr. Peter Lehner||Chairman, Director|
|Mr. Dino Titaro||Director, President and Chief Executive Officer|
|Mr. Patrick J. Mars||Director|
|Mr. John W. Hick||Director|
|Mr. David Danziger||Director|
|Mr. Daniel B.J. Kivari||Chief Operating Officer|
|Mr. Randall K. Ruff||Executive Vice President, Exploration|
|Mr.Guy Charette, Exec. Vice President,Corporate|
|Linda Prager||CFO and Secretary|
|Mr. Alexandru Nicolici||Managing Director SAMAX Romania S.R.L.|
|Company Address365 Bay St. Suite 500|
Toronto, Canada M5H 2V1
|Additional Address/Key ContactInvestor Relations|
Mike O’Brien – Ext 238, email@example.com
Alameda da Serra, 1021
Nova Lima – Minas Gerais
Phone: +55 (31) 3286 5703
SAMAX Romania S.R.L.
Str. Aleea Viitorului, nr. 2A, Sala 6
Cod 330075, Deva
Jud. Hunedoara , Romania
t: (+40) 254-232-070
|CapitalBasic Shares Outstanding: 385.4 MM|
21,110,000 options outstanding at a weighted average exercise price of $0.40 and maturity by May 13, 2013.
11,944,130 warrants at $0.33, maturity May 6, 2012. 10,889,376 wt at $0.45 maturity Dec 3, 2011.
1,339,296 Brokers wt at $0.23 expiring May 6, 2011 and 1,197,381
Brokers wt at $0.34 expiring Dec. 3 2011.
Fully Diluted: 430.6M