Carpathian Gold Nears Construction of Riacho dos Machados Gold Mine Project

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Researched by Industrial Info Resources (Sugar Land, Texas)--Carpathian Gold Incorporated (TSX:CPN) (Toronto, Canada) expects to start construction of its $130 million Brazilian gold mine project in the second quarter of 2010. The project is located in the city of Riacho dos Machados, about 540 kilometers north of Belo Horizonte, in the Brazilian state of Minas Gerais.

The mining concession area includes significant mining infrastructure from an open-pit oxide heap leach gold mine that was operated by Brazilian mining giant Vale from 1989 to 1997. The project entails restarting and expanding this mine with the potential to construct an underground mine, as well as the construction of a 6,000-ton-per-day carbon-in-leach processing plant. Mining operations are expected to produce 100,000 ounces per year of gold for 10 years.

Currently, Carpathian Gold is performing a feasibility study with the Brazilian consultant firm NCL Brasil Limitada (Nova Lima, Brazil), which also was responsible for the NI 43-101 compliant resource estimate that shows 1.01 million ounces of gold in the inferred category and 0.29 million ounces gold in the measured and indicated category. The feasibility study is planned to be complete by year's end. Meanwhile, Carpathian Gold continues with drillings to upgrade resources. Tecnomin Projetos e Consultoria Limitada (Belo Horizonte, Brazil) will be responsible for the basic and detailed engineering, and YKS Serviços Limitada (Belo Horizonte) is in charge of the environmental studies for the project. Selection of a constructor is expected to take place in the second half of this year.

Carpathian Gold is a Canadian mineral exploration company that operates in Brazil through its wholly owned subsidiary Mineracao Riacho dos Machados (Nova Lima). The company also owns three other advanced-stage exploration projects in Romania and Hungary.

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