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Rye Patch
Announces 2011 Programs and Budgets for Nevada Portfolio
Vancouver,
British Columbia, February 17, 2011 - Rye Patch Gold Corp (TSX.V: RPM; OTCBB:
RPMGF) ("Rye Patch" or the "Company") announces programs
and budgets for the 2011 exploration season. The Company plans to spend a
total of $3.5 million on its Nevada project portfolio. Within the Oreana
trend, a total of $2.25 million is planned for the Wilco, Lincoln Hill and
Gold Ridge projects. At the Garden Gate Pass project, a first-pass drilling
program is being planned at an approved budget of $750,000. The remainder of
the budgeted funds will be used for general corporate purposes, claim fees,
and advance royalty payments.
HIGHLIGHTS:
- Core
drilling in the North Basin started in early January and is on-going at
the Wilco property ($750,000);
- Follow-up
drilling on the newly identified Jefferson zone at Lincoln Hill is being
designed ($1,000,000);
- Completion
of first- and second-phase drilling on the Silver Ridge and Red Hill
targets at Gold Ridge ($500,000);
- Target
selection and drilling program on the Garden Gate Pass project
($750,000); and
- As of
February 15, 2011, the Company has cash on-hand of $9,000,000.
Wilco:
At the Company's 100% controlled Wilco project, gold and silver assays were
reported from two completed drillholes exploring the North Basin high-grade
structural zone (see the Company's news release dated January 25, 2011). To
date, six core holes have been completed along the zone with results pending
on the last four. A seventh core hole is in progress, and a total of twelve
drillholes are planned. The core program will continue to follow the
high-grade gold zone westward and attempt to expand the zone along strike
from the existing 200 metres length to 900 meters. To date, the core drilling
has expanded the known strike length of the zone. A minimum of 3,000 meters
of wide-spaced drilling is planned at this time. Follow-up and in-fill
drilling will commence once the total strike length of the zone is known. An
initial budget of $750,000 has been allocated to the 2011 program. Additional
funds will be released once step-out drilling is complete.
Lincoln Hill:
The fall 2010 drilling program at the 100% controlled Lincoln Hill property
returned exciting results along a new zone -- the Jefferson zone. The
northwest oriented dyke system controls the main strike of the Jefferson
zone; however, the 2011 drill program will focus on intersection zones known
to produce high-grade gold and silver as seen in the Lincoln Hill resource.
These could deliver very high grades similar to previous assay results as
announced in the Company's news release dated September 24, 2008, where
drillhole LR-013 delivered gold grading 27.2 g/t gold over 21.3 metres. The
high-grade zones occur at the intersection of the lamprophyry dykes and
northeast oriented fold axis. The 2011 drilling program will focus on these
types of intersections within the Jefferson zone as well as expanding the
existing Lincoln Hill resource. A drilling program totalling 5,000 metres is
being designed and will commence in the spring. In-fill drilling is also
planned in the Lincoln Hill resource to upgrade a portion of the resource
from inferred to measured or indicated. A budget totalling $1,000,000 is
planned.
Gold Ridge:
The fall 2010 drilling program confirmed upside potential continues along the
Oreana trend at the 100% controlled Gold Ridge project. During last fall, two
of five drill targets were tested, and they returned significant results from
a first-pass, scout-drilling program. The drilling at Silver Ridge shows gold
and silver associated with a northerly trending anticline that has been
mapped for 1.7 kilometres. Drilling into the anticline delivered significant
thicknesses of mineralization including 0.46 g/t gold and gold equivalent
over 39.6 metres (see the Company's news release dated February 8, 2011).
Drillholes along the Silver Ridge anticline were spaced at roughly one kilometer.
Additional drilling is warranted based on the assay results and size of the
target zone. Drilling will commence in spring.
At a second target, Red Hill, drillholes cut thick zones of low-grade gold
and silver along a north trending dyke zone. Additional drilling will focus
on the dyke system to understand the extent and potential of the zone.
Drilling will commence in the summer.
The Gold Ridge project contains three additional areas which require more
field work to define and refine drill targets. Over the summer, mapping,
sampling and geophysics will be conducted to identify drill targets for
testing during fall 2011.
At Gold Ridge, a budget totalling $500,000 is planned.
Garden Gate Pass:
At the Company's 100% controlled Garden Gate Pass project, the exploration
program is progressing nicely. Detailed mapping was completed last fall and
an aeromagnetic survey was acquired over the property. This spring, a
detailed gravity survey will be conducted, and drillhole selection will
commence. A drill program totalling 5,000 meters is planned for late spring
to early summer to test for a Carlin gold system on the property. The drill
targets are anticipated to be within 500 metres of the surface. The Garden
Gate Pass project is in elephant country just south of Barrick Gold's Cortez
Hills mine complex and north of US Gold's Tonkin Springs
facility. A budget of $750,000 has been approved.
As announced on May 18, 2010, May 11, 2009, and June 2, 2009 in respect of
the Lincoln Hill, Wilco, and Jessup projects, Rye Patch Gold's resource
inventory now totals 1,182,780 ounces of gold and gold equivalent in the
measured and indicated category plus 2,727,100 ounces of gold and gold
equivalent in the inferred category. Table 3 summarizes Rye Patch Gold's
precious metal inventory in Nevada, USA.
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Table
3: Rye Patch Gold's NI43-101 Resource Inventory (1)
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Property
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Resource
Category
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Tonnes (X 1,000)
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Gold Grade (g/t)
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Silver Grade (g/t)
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Contained Gold Ounces
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Contained Silver Ounces
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Contained Au & Au Equivalent
Ounces (4)
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Wilco (2)
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Measured
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7,526
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0.69
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4.595
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164,000
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1,111,000
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186,220
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Indicated
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30,844
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0.51
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3.601
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522,000
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3,638,000
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594,760
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Inferred
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121,838
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0.41
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5.075
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1,660,000
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19,871,000
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2,057,420
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Jessup(2)
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Measured
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7,775
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0.51
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8.745
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128,000
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2,184,000
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171,680
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Indicated
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12,642
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0.41
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7.167
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172,000
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2,906,000
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230,120
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Inferred
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4,494
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0.55
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7.922
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77,000
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1,146,000
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99,920
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Lincoln Hill (3)
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Measured
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-
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-
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-
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-
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-
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-
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Indicated
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-
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-
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-
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-
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-
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-
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Inferred
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17,215
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0.69
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17.143
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380,000
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9,488,000
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569,760
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Total Measured & Indicated
Resources
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986,000
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9,839,000
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1,182,780
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Total Inferred Resources
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2,117,000
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30,505,000
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2,727,100
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(1)
All resources on 100% basis. Metallurgical recoveries and net smelter
returns are assumed to be 100%. Conforms to 43-101 resource
definitions;
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(2)
Cutoff grade for Wilco Measured and Indicated resource is reported at 0.2
g/t Au for oxide mineralisation and 1.45 g/t Au for sulphide
mineralisation. The Inferred resource cut-off grade is reported at 0.2 g/t
Au for oxide, sulphide and carbonaceous ore types; however, a higher opt Au
cut-off grade may be required to upgrade the inferred resource to the
measured and indicated resource category. Cut-off grade for Jessup is
reported at 0.2 g/t Au for oxide mineralisation and 0.34 g/t Au for
transition and sulphide mineralisation; and
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(3)
The Inferred resource is reported at a cut-off grade of 0.34 g/t (0.01 opt)
Aueq for oxide and transitional ore types;
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(4)
Wilco, Jessup and Lincoln Hill resources includes Au equivalent ounces
(Aueq.); where Aueq. = (Au ozs) + (Ag ozs X $Ag/oz)/$Au/oz, for Au/oz = $900, and
Ag/oz = $18.
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Mr. William Howald, AIPG Certified Professional Geologist #11041, Rye Patch
Gold's CEO and President, is a Qualified Person as defined under National
Instrument 43-101. He has verified the information contained in, and has
reviewed and approved the contents of, this news release.
Rye Patch Gold Corp. is exploring well-known mineral trends in Nevada - the
world's fourth-richest gold region. Starting with 150,000 inferred ounces of
gold in mid-2007, this well-funded Company now has approximately 1.2-million ounces
of gold and gold equivalent in the measured and indicated category, plus
2.7-million ounces of gold and gold equivalent in the inferred category. Rye
Patch Gold 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 acquisition, exploration and development of quality
resource-based gold and silver projects. Rye Patch Gold is developing its
primary assets -- the advanced-stage Wilco, Lincoln Hill, Jessup, and Gold
Ridge projects located along the emerging Oreana gold trend in west-central
Nevada. 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 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:
Rye Patch Gold Corp
info@ryepatchgold.com
Tel.: (604) 638-1588
Fax: (604) 638-1589
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 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.
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.
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