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NEWS RELEASE
No. 07 - 11 |
Rye Patch Gold Acquires Rights to Lincoln Hill Property, Nevada and Consolidates Goldridge Property Holdings
Vancouver, British Columbia, November 19, 2007 - Rye Patch Gold Corp (TSX-V: RPM and RPM.WT) ("Rye Patch Gold" or the "Company") is pleased to announce that it has entered into a letter agreement ("Letter Agreement") with Mountain Gold Exploration, Inc. ("MGE") and Lane Griffin ("Lane") (collectively, the "Lessors") for the lease of certain properties and mineral rights owned or controlled by MGE and Lane located in the Lincoln Hill area of Pershing County, Nevada (the "Property"). The Property is comprised of 1 patented lode claim and 34 unpatented mining claims encompassing a total of 718 acres, of which 28 claims are owned by the Lessors and seven claims are controlled by MGE pursuant to an option to purchase (the "Underlying Option Agreement") between MGE and the underlying claim owners. The lease will be for a term of 20 years, renewable on certain conditions.
"The Lincoln Hill property consolidates our land position within the Goldridge project to 3,276 acres, and securely positions the Company along the Spring Valley gold trend. The Lincoln Hill breccia is along strike of the Midway's discovery area at Spring Valley and Limerick basin, and the style of mineralization observed on the Lincoln Hill property suggests a buried porphyry and near surface diatreme gold system. The significance of this style of mineralization is the potential for a large, bulk-minable gold deposit. Field exploration work will be expedited to bring the project to a drill ready phase by next summer."
"It is interesting to note that a portion of the gold mined from the underground workings was sold as specimen gold thus confirming the high-grade potential in the area", commented William C. (Bill) Howald, CEO and President.
The Lessors will retain a 4% net smelter returns on the Property, 25% (or 1% NSR) of which Rye Patch Gold may purchase for US$1 million during the first 7 years of the lease and another 25% (an additional 1% NSR) which may be purchased for US$3 million during the first 10 years of the lease. The Lessors also reserve the right to explore for and mine andalusite, dumortierite and industrial minerals on the Property.
Rye Patch Gold is to pay the Lessors advance royalties (to be credited towards the Lessors' NSR) by way of cash and common shares of Rye Patch Gold as follows: 100,000 shares upon receipt of stock exchange approval; US$60,000 and 100,000 shares by November 2008; US$65,000 and 100,000 shares by November 2009; US$70,000 and 150,000 shares by November 2010; US$75,000 and 150,000 shares by November 2011; US$80,000 and 150,000 shares by November 2012; and US$80,000 for each year thereafter.
In addition, Rye Patch Gold has agreed to undertake the following minimum exploration expenditures on the Property: US$100,000 by November 2008; US$200,000 by November 2009; US$300,000 by November 2010; US$500,000 by November 2011; and US$1,000,000 by November 2012.
During the term of the lease, Rye Patch Gold will assume and perform the obligations of MGE under the Underlying Option Agreement, which include making remaining payments of US$5,346 in order to fully exercise the option.
Rye Patch Gold and the Lessors are committed to executing a definitive agreement governing the lease of the Property by January 31, 2008.
The lease of the Property and the issuance of Rye Patch Gold shares pursuant thereto are subject to the approval of the TSX Venture Exchange.
Rye Patch Gold Corp. is a Nevada-focused and discovery-driven company building a sizeable inventory of gold resource assets in the mining friendly state of Nevada, USA. The Company's seasoned management team is engaged in acquisition, exploration and development of quality resource-based gold projects. Rye Patch Gold is developing its primary assets - the advanced-stage Wilco project located within the Humboldt Gold Trend in west-central Nevada and the Jessup project in Churchill County, Nevada. Each Rye Patch Gold share is backed by a portion of gold ounces that represent a tangible link to gold price, and a store of value for our investors. The Company is seeking gold opportunities that continue to create shareholder value and leverage the gold price.
Rye Patch Gold trades on the TSX Venture Exchange under the symbol RPM and the Company's warrants trade under the symbol RPM.WT. For more information about Rye Patch Gold, please visit our website at www.ryepatchgold.com .
On behalf of the Board of Directors
'William Howald'
William C. (Bill) Howald, CEO & President
For additional information contact:
Jon Ruby
The Buick Group
jruby@buickgroup.com
Phone: 1-877-748-0914
Karen Robb, Manager Investor Relations
Rye Patch Gold Corp.
info@ryepatchgold.com
Phone: 604-638-1588
Fax: 604-638-1589
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Suite 1740 - 1177 West Hastings St., Vancouver, BC, V6E 2K3, Canada
Phone 604-638-1588 Fax 604-638-1589 www.ryepatchgold.com
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