Rye Patch Updates Investors on Receipt of Cash from Royalty
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov 25, 2014) - Rye Patch Gold Corp. (TSX VENTURE:RPM)(OTCQX:RPMGF)(FRANKFURT:5TN) (the "Company" or "Rye Patch") is pleased to update its shareholders on the Rochester mine Net Smelter Return royalty ('Rochester NSR'). To date, the Rochester NSR has delivered US$2.61 million or approximately CAD$2.85 million to the Company for the first three quarters of 2014. The Rochester mine pays a 3.4% net smelter return royalty quarterly to Rye Patch on each ounce of silver and gold produced and sold from the Rochester mine. The fourth quarter royalty payment is due on or before January 15, 2015. The royalty is fully leveraged to the price of gold and silver and is payable on 39.4 million ounces of silver equivalent.
The royalty contributed roughly US$1 million of cash to the Company for each of the second and third quarters of 2014, which was contributed to the Company's working capital. To date, the Company has completed drill programs on its 100% controlled Garden Gate Pass, Gold Ridge and Wilco projects along with a preliminary economic assessment ("PEA"), and a drill program at the Lincoln Hill project. The drill programs returned positive gold and silver assay results, and the PEA achieved an encouraging outcome. In 2014, the Company advanced its project portfolio, achieved substantive results, and completed its programs without requiring any equity financing and dilution to shareholders. The drill assay results and PEA are available on the Company's website at www.ryepatchgold.com.
Mr. William Howald, AIPG Certified Professional Geologist #11041, Rye Patch Gold's CEO and President, is a Qualified Person as defined under National Instrument 43-101. He has reviewed and approved the contents of this news release.
About Rye Patch Gold Corp.
Rye Patch Gold Corp. is a Tier 1, well-funded junior mining company with a royalty revenue stream from the operating Rochester silver mine, significant gold and silver resources, and tremendous exploration upside all located in the mining friendly state of Nevada, USA. The Company's seasoned management team is engaged in the acquisition, exploration, and development of quality resource-based gold and silver projects. Rye Patch Gold US Inc. controls over 75 square kilometres (30 sq. miles) of land, and the Company is aggressively developing gold and silver resources along this emerging trend. In east central Nevada, Rye Patch Gold US Inc. is exploring 66 square kilometres of exploration land along the prolific Cortez trend contiguous to Barrick's new Goldrush deposit. The Company has established gold and silver resource milestones and time frames in order to build a premier resource development company. The Company's cash and cash flowing royalty allow for progress without dilution to shareholders. For more information about the Company, please visit our website at www.ryepatchgold.com.
On behalf of the Board of Directors
William C. (Bill) Howald, CEO & President
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; the timing and content of work programs; the results of exploration activities and development of mineral properties; the interpretation of drilling results and other geological data; the reliability of calculation of mineral resources (and, in respect of the Coeur Rochester mine 3.4% NSR, the reliability of calculation of Coeur's mineral resources and reserves); the reliability of calculation of precious metal recoveries; the 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.
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.