Rye Patch Starts Drilling on Jefferson Zone at Lincoln Hill
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/24/11 -- Rye Patch Gold Corp (TSX VENTURE: RPM)(OTCQX: RPMGF) ('Rye Patch' or the 'Company') starts drilling on the company's 100% controlled Lincoln Hill project along the emerging Oreana gold and silver trend located in Nevada.
HIGHLIGHTS
-- Drill program begins with follow-up program along the newly discovered
1.5 kilometre Jefferson zone;
-- Program will target high-grade intersection zones similar to the Lincoln
Hill resource (21.3 meters grading 27.2 g/t gold and 34 g/t silver);
-- A geophysical survey suggests a third target located west of the
Jefferson zone along a parallel dyke swarm; and
-- The drill program will consist of 7,000 metres of RC and core.
On January 12, 2011, Rye Patch reported results of the fall 2010 Lincoln Hill drill program. The Company completed 15 drillholes totaling 2,403 metres using a reverse circulation drill rig. The successful program identified the Jefferson zone, and expanded the footprint of the Lincoln Hill resource. The Jefferson zone's geophysical signature is traceable for 1.5 kilometres, and drilling along a one-kilometer portion of the Jefferson zone returned significant gold and silver assays associated with a northwest oriented mafic dyke system.
'We are excited to return to Lincoln Hill and start drilling on the newly identified Jefferson zone. The program will focus on expanding the Lincoln Hill resource (380,000 ounces of gold and 9,488,000 ounces of silver in the inferred category),and quantifying the newly identified Jefferson zone. The Jefferson zone strike length is twice the length of the Lincoln Hill resource and has potential to add significantly to the overall Lincoln Hill resource. The program is targeting the flat-lying favorable lithologic zones that show potential to build the resource. Synthesis of the surface geophysical data indicates a third zone (parallel dyke system) located to the west of the Jefferson zone,' stated William C. (Bill) Howald, the Company's President and CEO.
The Jefferson zone has similar geologic characteristics to the Lincoln Hill resource. Within the Lincoln Hill resource, gold and silver is associated with a northwest oriented high-angle dyke system. Where the dykes cross cut receptive rhyolite units, the mineralization is flat lying and high grade. The flat lying strataform zones can rapidly build gold and silver ounces within the resource area. The rhyolite beds are folded with fold axis oriented to the northeast. At the intersection of the receptive rhyolite unit, the mafic dykes, and the fold axis, high-grade gold and silver have been intersected in drilling. An example of this style of mineralization was encountered in RC drillhole LR-013 which returned 27.2 g/t gold and 34 g/t silver over 21.3 metres starting at 23 metres, and core hole, LRC-002, returned 21.19 g/t gold and over 7.0 metres starting at 25.3 metres (See the Company's news release dated December 10, 2009). The Jefferson zone has potential for similar intersection zones along its 1.5 kilometre length.
The ore controls and lithologies within the Jefferson zone show similar characteristics to the main Lincoln Hill resource; however, the strike length of the Jefferson zone dyke system is twice the length of the Lincoln Hill resource. Significant expansion and upside potential exists along the Jefferson zone, and the drill program will test expansion potential on this newly identified gold and silver zone, and additional target defined in the ground geophysical survey.
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 2 summarizes Rye Patch Gold's precious metal inventory in Nevada, USA.
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Table 2: Rye Patch Gold's NI 43-101 Resource Inventory(1)
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Contained
Gold
Gold Silver Contained Contained & Gold
Resource Tonnes Grade Grade Gold Silver Equivalent
Property Category (X 1,000) (g/t) (g/t) Ounces Ounces Ounces (4)
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Wilco(2) Measured 7,526 0.69 4.595 164,000 1,111,000 186,220
Indicated 30,844 0.51 3.601 522,000 3,638,000 594,760
Inferred 121,838 0.41 5.075 1,660,000 19,871,000 2,057,420
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Jessup(2) Measured 7,775 0.51 8.745 128,000 2,184,000 171,680
Indicated 12,642 0.41 7.167 172,000 2,906,000 230,120
Inferred 4,494 0.55 7.922 77,000 1,146,000 99,920
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Lincoln Measured - - - - - -
Hill(3) Indicated - - - - - -
Inferred 17,215 0.69 17.143 380,000 9,488,000 569,760
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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
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(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 =
$900, and Ag/oz = $18.
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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 verified the information contained in, and has reviewed and approved the contents of, this news release.
Rye Patch Gold maintains a strict quality control program at all of its projects. Drill samples are picked up by American Assay's preparation and analytical facility located in Reno, Nevada. Gold analyses are conducted on 1-assay ton prepped samples with gold determined using industry standard fire assay methods with an atomic absorption finish. Gold over limits are determined using fire assay with a gravimetric finish. Silver is analyzed using a four-acid digestion and an AA finish.
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. 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 its primary assets - the advanced-stage Wilco, Lincoln Hill, Jessup, and Gold Ridge projects located along the emerging Oreana gold trend in west-central Nevada. 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 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 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.
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.
Contacts:
Rye Patch Gold Corp
William C. (Bill) Howald
CEO & President
(604) 638-1588
(604) 638-1589 (FAX)
info@ryepatchgold.com
www.ryepatchgold.com