Rye Patch Gold Provides Rochester Legal Update
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/09/12 -- Rye Patch Gold Corp. (TSX VENTURE: RPM)(OTCQX: RPMGF) (the "Company") through its wholly owned subsidiary, Rye Patch Gold US Inc., the Company received notice from the Nevada Sixth Judicial District Court that a Special Master has been appointed in the lawsuit between the Rye Patch Gold US Inc. and Coeur Rochester Inc. A meeting with the Special Master will occur in May, and a schedule will be implemented to hear pre-trial matters. The trial to resolve the mining claim dispute is scheduled for November 2012.
The Special Master is retired United States District Court Judge David Hagen. The order appointing the Special Master provides that he will oversee and hear pre-trial matters. The Special Master will make recommendations to the Sixth Judicial District Court. Concurrently with the District Court's appointment of Judge Hagen, the District Court vacated the hearing of the motion for preliminary injunction filed by Rye Patch Gold US Inc. which was set for May 10.
Under United States law, Coeur Rochester Inc.'s failure to pay the annual mining claim maintenance fees caused their 541 unpatented mining claims to be forfeited and void as a matter of law on September 1, 2011. Coeur Rochester Inc. has admitted they did not pay the mandatory annual mining claim maintenance fees. As a result, the Ownership of and title to the minerals on the federal public lands reverted to the United States government for 56 days (almost two months), and during that time, any U.S. 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 on October 27, 2011 through mid November 2011, located 402 unpatented lode mining claims which it filed and recorded with the Bureau of Land Management and Pershing County, Nevada.
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 Sixth District Court of Nevada has enjoined the Company for safety reasons 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's December 5, 2011 news release.
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