Rye Patch Updates Rochester Project Resources Based on Coeur d'Alene's Recent Disclosures
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/06/12 -- Rye Patch Gold Corp. (TSX VENTURE: RPM)(OTCQX: RPMGF)(FRANKFURT: 5TN) (the "Company" or "Rye Patch") updates gold and silver resources on the LH and OG unpatented lode mining claims in Pershing County, Nevada based solely on information disclosed by Coeur d'Alene Mines Corporation ("CDE"). The LH and OG unpatented lode mining claims are located on lands previously staked by CDE's subsidiary, Coeur Rochester Inc. ("CRI"), and which became void prior to the staking of the LH and OG claims by Rye Patch Gold US Inc., the Company's wholly-owned subsidiary.
On September 11, 2012 and October 25, 2012, CDE presented at the Denver Gold Forum and the Spokane Silver Summit, respectively. In these presentations, CDE disclosed the amount of reserves and resources affected by the on-going legal dispute between CRI and Rye Patch Gold US Inc. Based on CDE's published 2011, yearend reserve and resource disclosure in its 10-K and the recent presentations, the mineral resources on the LH and OG unpatented lode mining claims are shown in Table 1.
Table 1: CDE's Coeur Rochester Inc. Measured, Indicated and Inferred
Resources
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Contained Ounces(5)
Rochester Year End Grade (100% Basis)
2011 Resources (1) (Ounces/Ton) X 1000
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Tons
X1000 Silver Gold Silver Gold Ageq (4)
Measured &
Indicated 251,472 0.45 0.003 112,348 867 155,698
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Inferred 40,543 0.58 0.003 23,619 122 29,719
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LH and OG
CRI Ounces (2) Claim Ounces(3)
Rochester Year End (74% M+I tons) (26% M+I tons)
2011 Resources (1) X 1000 X 1000
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Tons
X1000 Silver Gold Ageq (4) Silver Gold Ageq (4)
Measured &
Indicated 251,472 83,137 641 115,216 29,210 225 40,481
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LH and OG
CRI Ounces Claim Ounces
(59% Inferred tons) (41% Inferred Tons)
Inferred 40,543 13,935 71 17,534 9,683 50 12,184
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(1) Rochester resources from Coeur d'Alene Mines Corporation 2011 yearend
resource table at $1,500 per ounces gold and $30 per ounce silver;
(2) Coeur d'Alene Mines Corporation disclosure, Denver Gold Forum,
September 11, 2012 (website presentation);
(3) Converse of Coeur d'Alene Mines Corporation disclosure showing
resources on LH and OG Claims;
(4) Ageq equals gold ounces times fifty plus silver ounces (Ageq =
((Au(i)50) + Ag); and
(5) Separate measured and indicated tons unknown to Rye Patch.
These estimates in respect of the LH and OG unpatented lode mining claims should not be construed as current mineral resources attributable to Rye Patch, as they are derived solely from public information disclosed by CDE, and Rye Patch has not verified any of the data that CDE has relied upon in estimating CDE's total published resources on the Rochester project. Although CDE'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 has done sufficient work to analyze, interpret, classify or verify CDE's information to determine any current mineral reserve or resource on the LH and OG unpatented lode mining claims. Accordingly, the reader is cautioned in placing any reliance on the above estimates.
The value and quality of the measured, indicated, and inferred silver equivalent ounces vary with jurisdiction, infrastructure, geometry, grade and metallurgy. The quality of these ounces is considered excellent since Nevada has extraordinary infrastructure, the resource is near surface, and grades and metallurgy are assumed to be similar as those immediately adjacent in the Rochester and Packard mines.
CDE reported on December 5, 2011 that based on the 2010 year end reserve statement, up to 20% of the proven and probable reserve was affected by the disputed claims. From its September 11, 2012 and October 25, 2012 presentations, CDE now reports that no proven or probable reserves are located on the LH and OG claims, notwithstanding a 19% increase in gold price ($1,220 vs. $1,025) and a 42% increase in silver price ($23 vs. $16.25) used in calculating the December 31, 2011 year end reserve and resource disclosure.
Last fall, Rye Patch Gold US Inc. located unpatented lode mining claims on open federally owned public lands of the United States of America. The federal lands became open for the staking of unpatented lode mining claims on September 1, 2011 when CRI did not pay the time-sensitive, mandatory unpatented claim maintenance fee. As a result of CRI's failure, its former 541 unpatented lode mining claims were forfeited and void as a matter of law, and the public lands became open for the location of unpatented lode mining claims by United States citizens.
CRI received decision letters from the United States Bureau of Land Management officially declaring CRI's former 541 unpatented lode mining claims forfeited and void as a matter of law. CDE reported in its 10-K that CRI failed to pay the mandatory claim maintenance fees, resulting in the former 541 unpatented lode mining claims becoming void.
Since the federal lands that previously covered the forfeited 541 unpatented lode mining claims were open to mineral location by all United States citizens, including Rye Patch Gold US Inc., for 56 days, Rye Patch Gold US Inc. began staking the 402 LH unpatented lode mining claims on the open federal lands. The claim staking commenced on October 27, 2011, and all monumentation was completed by November 21, 2011. In late November 2011, Rye Patch Gold US Inc. contacted CRI to notify it that the 402 LH unpatented lode mining claims had been staked. CRI responded by overstaking the senior 402 LH unpatented lode mining claims with a junior set of claims denoted as the N unpatented lode mining claims, and this triggered the legal proceedings between Rye Patch Gold US Inc. and CRI over title to the claims. In 2012, an additional 11 unpatented lode mining claims were staked on open lands bringing Rye Patch Gold US Inc.'s total number of unpatented lode mining claims to 413 for the Rochester Project.
Rye Patch Gold US Inc. controls over 100 square kilometres (40 sq. miles) along the Oreana trend. The LH and OG Claims which comprise the Rochester Project consist of 413 unpatented lode mining claims which cover over 30 square kilometres (7,500 acres).
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 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