VANCOUVER, Sept. 14, 2017 /CNW/ - Rye Patch Gold Corp. (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) (the "Company" or "Rye Patch") provides the following update on operations at the Company's flagship Florida Canyon mine in the state of Nevada.
- Mine production in July and August totalled approximately 1.7 million tons, which exceeded budgeted production for those months by 48%;
- Maintenance issues with haulage trucks have been resolved and all eleven 785-CAT haul trucks were operational during July and August. Availability was 84% in July. All loading equipment is fully operational. Four 785C-Cat haul trucks are expected to arrive in Q4;
- Crushed tons exceeded budget by approximately 16% for July and August with a total of approximately 1.36 million tons placed on the leach pad during those months;
- The grade of material placed on the leach pad was 13% higher for the month of July than predicted and at the predicted grade for August. The transition from the Phase 1A pad to Phase 1B is now complete.
- Both the acid wash circuit and the regeneration kiln have been online and fully operational since mid-July;
- The rate of gold recoveries is consistent with modelled recovery curves.
Ounces of gold produced as a proportion of ounces placed on the pad has lagged behind our original projections. This is a timing issue which relates to the placement of over liner material (which is gold-bearing) on the pad and is not an issue of grade or metallurgical recovery. Over liner is placed in sections as a rolling front ahead of the ore. Leaching occurs after the ore is placed on the over liner with the levels of overall recovery gradually increasing until the over liner is completely covered with ore. For the months of July and August, over liner was placed on Phase 1B of the pad while ore was placed and leached only on Phase 1A. This has resulted in a deferral of ounces recovered by a lag period of 2 to 3 months which pushes out our expectations for commercial levels of recovery to Q1 2018.
"Although the time lag in production of gold ounces is our first bump in the road to what has been a remarkably successful ramp-up, we have made modifications in our planning and execution to speed up the process," said William Howald, Rye Patch President and CEO. "With mining and crushing outperforming expectations by a significant margin, the production of gold ounces is anticipated to accelerate in the coming months to match the tonnage placed on the leach pad."
Complete production results for Q3 will be announced by the Company in the first week of October.
Mr. William Howald, AIPG Certified Professional Geologist #11041, Rye Patch Gold's CEO and President with a BSc. in Geological Engineering, is a Qualified Person as defined under National Instrument 43-101. He has reviewed and approved the contents of this news release.
About Rye Patch Gold Corp.
Rye Patch Gold Corp. is a Nevada based, Tier 1, mining company engaged in the mining and development of quality resource-based gold and silver mines and projects along the established Oreana trend in west central Nevada. Leveraging its strong financial position and cash to acquire the operating Florida Canyon Gold Mine, Rye Patch Gold Corp. now controls a trend‑scale platform with mining operations, resource projects and exploration upside. The combination of operations and organic growth along a major Nevada gold trend positions Rye Patch as an emerging mid-tier gold producer with tremendous value-added potential. For more information, 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 relating to future plans and objectives of the Company, future deliveries of gold, proposed operations of the Company including mine development, funding requirements, timeline for commercial production, future events and conditions and other statements that are not historical facts, all of which are based on assumptions and 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 the following assumptions and risk factors, some of which may be beyond the Company's control. These assumptions and risk factors include: future deliveries of gold pursuant to the forward gold price contract facility, the achievement of mine redevelopment plans and achievement of commercial production; the availability of funds; the financial position of Rye Patch; the timing and content of work programs; the results of exploration activities and development of mineral properties; the interpretation of drilling results and other geological data; the reliability of calculation of mineral resources; the reliability of calculation of precious metal recoveries; the 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. As a result, the Company cannot guarantee that the Florida Canyon mine redevelopment and achievement of commercial production will be completed on the terms and within the time disclosed herein or at all.
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.
SOURCE Rye Patch Gold
For further information: Rye Patch Gold Corp, email@example.com, Tel.: (604) 638-1588, Fax: (604) 638-1589