Rye Patch Expands Oreana Trend Holdings Stakes Mining Claims on Existing Gold and Silver Resources
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/05/11 -- Rye Patch Gold Corp. (TSX VENTURE: RPM)(OTCQX: RPMGF) ('Rye Patch' or the 'Company') through its wholly owned subsidiary Rye Patch Gold US Inc. announces it has acquired land and mineral rights by staking open, locatable public lands which contain gold and silver resources in the Rochester Mining District, Pershing County, Nevada. Through a review of the United States Bureau of Land Management ('BLM') mining claim maintenance fee records, Rye Patch Gold identified open locatable public lands and staked claims covering portions of the Rochester and Nevada Packard gold and silver mines and their resource inventory - approximately 400 unpatented mining claims covering 30.3 square kilometres. An unknown portion of the Rochester and Nevada Packard resources along with numerous gold-silver targets are within the newly staked ground.
The claim maintenance fee is a mandatory fee paid yearly on or before August 31 of each year. Coeur Rochester, Inc., a wholly-owned subsidiary of Coeur d'Alene Mines (TSX: CDM)(NYSE: CDE), failed to pay the mandatory claim maintenance fee payment to the BLM rendering its 541 unpatented mining claims conclusively forfeited and void on September 1, 2011. The lands with the forfeited mining claims became open to entry and the location of new mining claims by any third party. Rye Patch identified the open ground and located unpatented mining claims during October and November 2011. Rye Patch completed the monumentation of its mining claims in November 2011. Rye Patch informed the senior management of Coeur d'Alene Mines of the location of the mining claims on November 28, 2011.
'The process of maintaining unpatented mining claims in the United States of America is clear and unambiguous. If a claim owner does not pay the fee on time, the claim is forfeited and void. The effect of the law's forfeiture provisions is well-established. Coeur d'Alene Mines failed to pay the annual mining claim maintenance fee on time and the ground became open for mineral location. Rye Patch investors now have under their control mining claims located on additional gold and silver resources and a portion of the lands formerly part of an active mine. Our geologic team is on the ground diligently sampling, mapping and permitting drill targets for immediate follow up,' stated William C. ('Bill') Howald, the Company's President and CEO.
Rye Patch's geologic team is on the ground sampling, mapping and permitting drill targets on the new LH claims. There are several targets within the claim block that require immediate follow up. First, the Rochester orebody is open to the north and northwest and the pit boundary is expanding on to Rye Patch Gold's LH claims. Published drill results show the Nevada Packard resource continued from the patented claims on to the LH claims. Roughly one third of the resource and its expansion potential are within the LH claims (a qualified person has not done sufficient work to classify the historical estimate as current mineral resources, the issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon). The geologic team is working to assess the amount of gold and silver resource present on the LH claims. Several additional targets are within the claim block including the Mystic, Looney and Limerick Basin will be permitted. Finally, the Black fault zone is on the LH Claims. This ore control has significant potential and controls gold and silver mineralization at the Relief Canyon, Packard, Rochester, and Spring Valley deposits. All these target are presenting being developed, evaluated, and prioritized.
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.
---------------------------------------------------------------------------
Table 1: Rye Patch Gold's NI43-101 Resource Inventory(1)
---------------------------------------------------------------------------
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)
---------------------------------------------------------------------------
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
---------------------------------------------------------------------------
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
---------------------------------------------------------------------------
Lincoln Measured - - - - - -
Hill(3) Indicated - - - - - -
Inferred 17,215 0.69 17.143 380,000 9,488,000 569,760
---------------------------------------------------------------------------
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 =
$900, and Ag/oz = $18.
---------------------------------------------------------------------------
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 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 gold and silver assets 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 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.
(604) 638-1588
(604) 638-1589 (FAX)
info@ryepatchgold.com
www.ryepatchgold.com