Advancing Lincoln Hill, Nevada, toward feasibility
Drill testing exploration targets on the prolific Cortez trend
VANCOUVER, Feb. 10, 2015 /CNW/ - Rye Patch Gold Corp. (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) (the "Company" or "Rye Patch") is pleased to present its work program and budget for 2015.
Benefitting from its strong financial position, the Company's strategy is to balance development and exploration risk, creating value through activity on three main fronts:
- Mine development - advancing Lincoln Hill toward production ($2.4million);
- Pursuing a world class discovery - Garden Gate and Patty - contiguous to and on strike with Barrick's Goldrush deposit ($1.1million); and
- Seeking new project opportunities and accretive transactions ($280,000).
The Company's current $6 million treasury, plus royalty cash-flow (currently $1.2 million a quarter), represents a significant advantage in this uncertain market. Rye Patch is one of few companies able to advance its projects with meaningful on-the-ground activities and has the financial leverage to take advantage of new opportunities.
The 2015 budget totals $5 million, with a healthy weighting of the budget, $3.7 million (75%) going directly into operations and $280,000 (5%) into new project generation and corporate development. The Company will maintain fiscal responsibility with general and administration costs of $784,000 (16%) and investor relations activities totaling $271,000 (5%). The quarterly royalty payments relieve the Company of any need for equity financing at current market prices and allow the Company to maintain a healthy cash balance in the coming year. This provides the Company the flexibility to seize opportunities as they arise.
Lincoln Hill - Mine Development, Oreana Trend, Nevada
Following successful completion of economically robust Preliminary Economic Assessment (see May 21, 2014, news release) with a low capital expenditure ($30.2 million), the Company intends to advance this project toward feasibility over the next 18 months. The bulk of the budget will be focused on expansion and infill drilling. The entire program totals 15,000 metres, with half the drilling to be completed in 2015. The program is designed to increase the resource and convert further ounces into the measured and indicated category. The drilling will concentrate on the Lincoln Hill resource along with exploration drilling at Independence Hill directly to the south and Gold Ridge to the west. A plan of operations is being permitted which will allow for 200 acres (81 hectares) of disturbance. Permitting is anticipated to allow drilling to commence in the fall.
The Company plans to systematically de-risk the project by completing the baseline studies started in 2014; conducting the next stage of metallurgical testing; advancing environmental permits, mine planning, engineering studies; and reviewing project financing alternatives that complement its royalty cash flow.
Garden Gate Pass and Patty–World-Class Exploration, Cortez Trend, Nevada
The Company will drill test both of these properties in the first half the year, targeting the strike extension of Barrick's growing Goldrush deposit (15Mozs of gold) in Nevada. As a result of reconciling 2012 and 2014 drilling information (see April 29, 2014, news release) with seismic data, the Company has refined its targets, including identifying a disrupted zone beneath an anticline structure. The structural architecture seen on the seismic profile is significant and similar to the known geometry of the Goldrush deposit. The new interpretation represents a high priority drill target which could lead to a new Carlin-type deposit discovery.
The Patty project that lies south and along strike will also undergo initial exploration drill testing, with the aim of expanding on the 2012 drill information and targeting a new discovery. Two priority targets have been identified. The first is the strike extension of the Goldrush geologic setting. Past drilling returned drill intervals of 105 metres grading 0.3 g/t. The overall thickness of the zone is encouraging and is being used to vector new drilling in the Goldrush Anticline target. The second area, Indian Creek, is very exciting. Geologic mapping has re-interpreted a sedimentary debris-flow breccia deposited along the trace of a major basement fault and potential ore-controlling feature. This structural architecture provides the optimal setting for a Carlin-type deposit.
The Company's other resource property, Wilco, and exploration projects X Claims and South Coal Canyon, will be maintained during the year at a cost of $174,000.
About Rye Patch Gold Corp.
Rye Patch Gold Corp. is a Tier 1, well-funded junior mining company with a royalty revenue stream from the operating Rochester silver mine, significant gold and silver resources, and tremendous exploration upside all located in the mining friendly state of Nevada, USA. The Company's seasoned management team, participants in over 100-million ounces of gold discoveries, is engaged in the acquisition, exploration, and development of quality resource-based gold and silver projects. Rye Patch Gold US Inc
. controls over 75 square kilometres (30 sq. miles) of land on the emerging Oreana trend and 66 square kilometres along the prolific Cortez trend, contiguous to Barrick's new Goldrush deposit. The Company's cash and cash flowing royalty allow for progress without dilution to shareholders. 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; 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 (and, in respect of the Coeur Rochester mine 3.4% NSR, the reliability of calculation of Coeur's mineral resources and reserves); 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.
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 protected], Tel.: (604) 638-1588, Fax: (604) 638-1589