Rye Patch Gold Corp (TSX.V: RPM; OTCQX: RPMGF) (Rye Patch or the Company) through its wholly owned subsidiary, Rye Patch Gold US Inc., is pleased to announce the Company has staked an additional 60 claims covering approximately 3.5 square kilometres (856 acres) located south and west of the Rochester Silver mine in Pershing County, Nevada and started its reverse circulation drilling campaign on the Company's Rochester project gold and silver discoveries.
HIGHTLIGHTS: • Boart Longyear and National Drilling reverse circulation drill rigs are setting up and will start drilling on the Mystic discovery and the Northwest Rochester discoveries this week; • Thirty-six new claims cover a 1.6 kilometre strike length of the Black Ridge fault system south of the Rochester and Packard deposits and north of the Relief Canyon mine; • Twenty-four new claims cover open locatable ground between the Rochester silver mine and the Company's Lincoln Hill deposit; and • Drill permits for Limerick Basin, Independence Hill, and Black Ridge Fault discoveries are in progress. DISCUSSION:
The initial drilling campaign has 10,000 metres (30,000 feet) in the Mystic and Northwest Rochester discovery areas and is employing two reverse circulation drill rigs. Additional drilling is planned for the Limerick Basin, Independence Hill and Black Ridge Fault zone. A $2-million budget is allocated for this phase of discovery development.
The new claims cover two target areas. The first set of claims consist of thirty-six claims covering a 1.6 kilometre length of the Black Ridge Fault system south of the Rochester and Packard silver deposits and north of the Relief Canyon deposit. The Black Ridge Fault zone is a major, north-south oriented ore control present at the Relief Canyon, Packard, and Rochester mines and the Spring Valley gold deposit. The new claims show good exploration upside.
A second area of open locatable ground between the Rochester mine and the Company's Lincoln Hill project was also staked. A total of twenty-four claims were staked covering historic mine workings on Golden Gate Hill. The area has similar geology to Lincoln Hill with historic workings indicating the presence of elevated silver and gold mineralization along structural zones. Mapping and sampling are in progress.
The Company's discovery and development program is advancing because of the quality of information reviewed and generated, and the gold and silver assays received to date. Based on the 457 rock-chip sample results discussed in our January 9, 2012, press release, the quality of Rye Patch's new gold and silver discoveries is higher grade than the material Coeur d'Alene is currently mining in the Rochester pit. These discoveries warrant additional expenditures to expand and develop the new gold and silver minerals discovered. This phase-1 drilling program shows our commitment to develop these new discoveries.
The Company continues to build a sizeable land position along the Oreana trend since it arrived on the trend in 2006. To date, the Oreana trend and the Rochester District have been underexplored. In light of the rate and quality of new discoveries and resource quantification completed by Rye Patch in a short period of time, this demonstrates the attractiveness of the mineral claims for further exploration and development, stated William C. Howald, President and CEO of Rye Patch Gold.
Rye Patch Gold controls over 100 square kilometres along the Oreana trend. The Rochester Property - LH Claims - covers 30.3 square kilometres (7,493.2 acres). The District Court has enjoined the Company from conducting exploration activities on approximately 7.4 square kilometres (1,839.3 acres) covering the active open pit, mine dumps and leach pads in the immediate Rochester Mine area. It is the Company's position that all the LH claims continue to be valid senior unpatented mining claims including those claims within the court-ordered enjoined area. The LH claims contain five new discoveries and the land area which covers up to 20% of Rochester's published proven and probable silver and gold reserve along with a significant portion of the published silver and gold resource based on Coeur d'Alene Mine's December 5, 2011, news release.
As announced on May 18, 2010, May 11, 2009, and June 2, 2009, in respect of the Lincoln Hill, Wilco, and Jessup projects, Rye Patch Gold's resource inventory along the Oreana trend now totals 1,182,780 ounces of gold and gold equivalent in the measured and indicated category plus 2,727,100 ounces of gold and gold equivalent in the inferred category. Table 1 summarizes Rye Patch Gold's precious metal inventory in Nevada, USA excluding any resources within the LH claims. Total Oreana Trend Measured & Indicated Resources 986,000 9,839,000 1,182,780 Total Oreana Trend Inferred Resources 2,117,000 30,505,000 2,727,100 1. All resources on 100% basis. Metallurgical recoveries and net smelter returns are assumed to be 100%. Conforms to 43-101 resource definitions; 2. Cutoff grade for Wilco Measured and Indicated resource is reported at 0.2 g/t Au for oxide mineralisation and 1.45 g/t Au for sulphide mineralisation. The Inferred resource cut-off grade is reported at 0.2 g/t Au for oxide, sulphide and carbonaceous ore types; however, a higher opt Au cut-off grade may be required to upgrade the inferred resource to the measured and indicated resource category. Cut-off grade for Jessup is reported at 0.2 g/t Au for oxide mineralisation and 0.34 g/t Au for transition and sulphide mineralisation; and 3. The Inferred resource is reported at a cut-off grade of 0.34 g/t (0.01 opt) Aueq for oxide and transitional ore types; 4. Wilco, Jessup and Lincoln Hill resources includes Au equivalent ounces (Aueq.); where Aueq. = (Au ozs) + (Ag ozs X $Ag/oz)/$Au/oz, for Au/oz = $1,200, and Ag/oz = $24.
Rye Patch Gold Corp. is exploring well-known mineral trends in Nevada - the world's fourth-richest gold region. Starting with 150,000 inferred ounces of gold in mid-2007, this well-funded Company now has 1.2-million ounces of gold and gold equivalent in the measured and indicated category, plus 2.7-million ounces of gold and gold equivalent in the inferred category (see Rye Patch's news releases dated May 18, 2010, May 11, 2009, and June 2, 2009). Between October 27 and November 21, 2011, Rye Patch Gold staked claims covering the Rochester Silver Mine. According to Coeur d'Alene Mine's December 5, 2011 news release, Rye Patch Gold has acquired 20% of the Rochester's proven and probable reserve and a substantial portion of the measured and indicated gold and silver resources.
Rye Patch Gold is a Tier 1, Nevada-focused and discovery-driven company seeking to build a sizeable inventory of gold and silver resource assets in the mining friendly state of Nevada, USA. The Company's seasoned management team is engaged in acquisition, exploration, and development of quality resource-based gold and silver projects. Rye Patch Gold is developing gold and silver resources along the emerging Oreana trend, located in west-central Nevada, and is exploring 66 square kilometres along the Cortez trend near Barrick's two new gold discoveries. The Company has established gold and silver resource milestones and time frames in order to build a premier resource development company. For more information about Rye Patch Gold, please visit our website at www.ryepatchgold.com.
On behalf of the Board of Directors 'William Howald' William C. (Bill) Howald, CEO & President
For additional information contact:
Rye Patch Gold Corp firstname.lastname@example.org Tel.: (604) 638-1588 Fax: (604) 638-1589
This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: the availability of funds, the financial position of Rye Patch to pursue legal undertakings; the outcome of legal action relating to the Rochester property and the LH unpatented claims, the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in metal prices; currency fluctuations; and general market and industry conditions. Litigation is inherently uncertain and factors that could cause actual results to differ materially from those in forward-looking statements include unexpected judicial findings of fact, previously unknown facts arising, and decisions which depart from past legal precedent and similar events.
Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.