Rye Patch Clarifies Technical Disclosure
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/04/12 -- As a result of a review by the British Columbia Securities Commission (the "BCSC"), Rye Patch Gold Corp. (TSX VENTURE: RPM)(OTCQX: RPMGF)(FRANKFURT: 5TN) ("Rye Patch Gold" or the "Company") is issuing this news release to clarify disclosure on the Company's corporate website and investor relations material relating to the mineral projects that are owned or controlled by the Company's wholly-owned subsidiary, Rye Patch Gold US Inc. ("Rye Patch US").Retraction of Previous Disclosure
In its disclosure, the Company stated exact estimates of contained ounces of proven and probable mineral reserves and measured and indicated mineral resources in respect of the LH Claims on the Rochester property held by Rye Patch US, the title to which is currently disputed by Coeur Rochester Inc., a subsidiary of Coeur d'Alene Mines Corporation ("Coeur").
None of those statements have been verified by the Company, and the Company has yet to complete its own technical report regarding the reserves and resources on the LH Claims to support those statements. Accordingly, those statements cannot be relied upon by the reader and the Company wishes to retract all of them.
The statements made by the Company were derived solely from a December 5, 2011 news release by Coeur which estimated that the LH Claims encompass an area which may cover "up to 20% of the Rochester property's proven and probable mineral reserves and a substantial amount of the property's mineralized material".
For compliance with United States disclosure, measured and indicated mineral resources are disclosed as "mineralized material". Information extracted from Coeur's January 1, 2011 technical report on the total mineral reserves and mineral resources on the Rochester property is summarized as follows:
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Table 1: Coeur Rochester Inc. Mineral Reserve and Resources - January 2011
(1) (2)
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RESERVES
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Average Silver
Grade Contained Equivalent
Area Category Tonnes (g/t) Ounces Ounces (3)
Au Ag Au Ag
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Rochester Proven 28,867,616 0.198 19.89 184,600 18,360,800 27,590,800
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Probable 9,612,439 0.154 24.35 47,700 7,523,100 9,908,100
Total P+P 38,480,055 0.188 20.92 232,300 25,883,900 37,498,900
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Metal prices used: $850/oz Au, $14.50/oz Ag
Strip Ratio equals 1.53 (W+ROM)/ORE, or 1.08 W/(ORE+ROM)
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RESOURCES
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Rochester Measured 94,407,540 0.161 17.49 489,100 52,865,800 77,320,800
Indicated 35,149,054 0.120 19.55 135,600 22,046,000 28,826,000
Packard Measured 3,381,440 0.127 43.90 13,800 4,752,400 5,442,400
Indicated 599,740 0.127 53.16 2,400 1,027,400 1,147,400
Total M+I 133,537,774 0.149 18.79 640,900 80,691,600 112,736,600
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Metal prices used: $1,100/oz Au, $17.00/oz Ag
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(1) Converted from original short tons and ounces per ton to tonnes and
grams per tonne.
(2) Data extracted from technical report dated January 1, 2011 titled,
"Rochester Mine, Lovelock, Nevada, USA" by Daniel Thompson, P.E., Manager of
Technical Services, Coeur d'Alene Mines Corporation.
(3) Silver Equivalent = Au x 50 + Ag
Based on Coeur's published information and its December 5, 2011 estimate of the affected mineral reserves and mineralized material, the LH Claims may contain up to approximately 7.5 million Ag eq ounces in the proven and probable categories (equal to up to 20% of Coeur's published total proven and probable reserves) and between approximately 11.3 and 78.9 million Ag eq ounces in the measured and indicated categories (estimated range from 10% to 70% of Coeur's published total measured and indicated resources). These estimates should not be construed as current mineral reserves and resources in respect of the LH Claims, as they are derived solely from public information disclosed by Coeur, and the Company has not verified any of the data that Coeur has relied upon in estimating Coeur's total published reserves and resources on the Rochester property. Although Coeur's published report appears to be prepared by a qualified person and the procedures, methodology and key assumptions disclosed therein are those adopted and consistently applied in the mining industry, no independent qualified person engaged by Rye Patch Gold has done sufficient work to analyze, interpret, classify or verify Coeur's information to determine any current mineral reserve or resource on the LH Claims. Accordingly, the reader is cautioned in placing any reliance on the above estimates.
NI 43-101 Non-Compliant Statements
In its review, the BCSC identified specific examples where the Company's website and investor relations material did not comply with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). These disclosures can be summarized as follows:
-- The Company disclosed historical mineral resource estimates without
providing the information and cautionary language pertaining to
historical resource disclosure as required by NI 43-101.
-- In describing the mineral resource inventory of Rye Patch US, the
Company aggregated inferred mineral resources with other categories of
mineral resources contrary to NI 43-101.
-- The Company made certain statements that were either prohibited by NI
43-101 or failed to contain the necessary qualifications required by NI
43-101. This also applied to statements made in certain interviews,
articles and news clips by third parties which were linked to the
Company's website.
-- The Company did not name the qualified person who prepared or approved
the scientific and technical information contrary to NI 43-101.
As a result of the BCSC's review, the Company has removed all of the non-compliant disclosures specifically identified by the BCSC from its website and investor relations material and, where applicable, corrected such disclosures in order to comply with NI 43-101. The Company is also reviewing all other disclosures on its website to ensure full compliance with NI 43-101.
William Howald, AIPG Certified Professional Geologist #11041, and Rye Patch Gold's CEO and President, is a "Qualified Person" as defined under NI 43-101. Mr. Howald has reviewed and approved the contents of this news release.
The Company 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 US Inc. 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 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 Gold 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