Rye Patch Gold Files Motion for Restraining Order Against Coeur D'Alene Mines
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/12/12 -- Rye Patch Gold Corp (TSX VENTURE: RPM)(OTCQX: RPMGF) (the 'Company') announces that its wholly owned subsidiary, Rye Patch Gold US Inc. ('Rye Patch US'), has filed a motion with the Nevada Sixth District Court for injunctive relief against Coeur Rochester Inc. ('CRI'), the wholly-owned subsidiary of Coeur d'Alene Mines Corp. ('CDE'). The motion seeks to enjoin CRI from exploring for and mining minerals on Rye Patch's 100% owned senior unpatented LH lode mining claims which comprise Rye Patch's Rochester project.
Based on the statements made in CDE's 10-K Annual Report filed with the United States Securities and Exchange Commission on February 23, 2012, CDE acknowledges, on page 28 of the 10-K, the forfeiture of CRI's 541 unpatented lode mining claims as a result of CRI's failure to pay the mandatory claim maintenance fee to the Bureau of Land Management ('BLM') which were due on or before August 31, 2011. Under United States law, CRI's failure to pay the annual mining claim maintenance fees caused CRI's 541 unpatented mining claims to be forfeited and void as a matter of law. Ownership of and title to the minerals on the federal public lands reverted to the United States government, and any citizen or U.S. company had the right to acquire mineral title through staking unpatented lode mining claims on the open federal lands. Rye Patch identified the open ground and beginning in October 2011 and November 2011 located 402 unpatented lode mining claims which it filed and recorded with the BLM and Pershing County, Nevada.
Since November 2011, Rye Patch has completed considerable work on the Rochester project - LH Claims. The Company completed detailed mapping, structural analysis, rock-chip sampling, soil sampling, a 75 line-kilometre ground-magnetic geophysical survey, and has commenced a 10,000 metre (30,000 ft) reverse circulation drilling campaign on its discoveries identified on the LH claims.
Rye Patch Gold controls over 100 square kilometres (40 sq. miles) 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 are valid senior unpatented mining claims, including those claims within the court-ordered enjoined area. Geologic assessment, and drilling confirm discoveries on the LH claims 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. The trial is scheduled for November 2012.
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 the 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 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 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.
Contacts:
Rye Patch Gold Corp.
(604) 638-1588
(604) 638-1589 (FAX)
info@ryepatchgold.com
www.ryepatchgold.com