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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 17, 2012) - Rye Patch Gold Corp. (News - Market indicators)(OTCQX:RPMGF)(FRANKFURT:5TN) (the "Company") announces the resource update on its wholly owned subsidiary, Rye Patch Gold US Inc., 100% controlled Lincoln Hill project located along the Oreana gold and silver trend.
- The in-pit resource returned 334,000 ounces of gold and 9.6 million ounces of silver in the measured and indicated category;
- On an equivalent basis, the in-pit resource represents 526,000 ounces of gold and gold equivalent or 26.3 million ounces of silver and silver equivalent in the measured and indicated category using a 50 to 1 silver to gold multiplier; and
- The resource is contained within a Whittle optimized pit using $1,200 per ounces for gold and $20 per ounce for silver.
||Table 1: Lincoln Hill Measured and Indicated Resources at September 2012|
||Table 2: Lincoln Hill Inferred Resources at September 2012|
The Whittle pit resource was calculated using US$1,200 per ounce gold and US$20 per ounce silver. Mining, milling and leaching costs were assembled from nearby geologically similar gold and silver deposits. The calculation used key assumptions for mining, processing and gold and silver recoveries. A cost of US$1.20 per tonne was used from mining while the processing costs were broken down for oxide and mill material. For heap leaching, a cost of US$1.30 per tonne was used. Mill ore was calculated at US$7.25 per tonne. A pit slope of 50 degrees was achieved, and an overall strip ratio of 3.6 tonne of waste to 1 tonne of ore.
Gold and silver recoveries for the different process technologies were broken down for oxide leach, oxide mill and sulphide mill. Recoveries were based process recoveries reported from nearby mining operations, and industry information. Heap leach recoveries for oxide material are 75% for gold and 50% for silver; oxide mill recoveries are 90% for gold and 70% for silver; and sulphide mill recoveries are 90% for gold and 85% for silver; however, metallurgical testing is required.
The Lincoln Hill open pit measures 1,300 metres in a northwest direction, 950 metres in a northeast direction. The elevation change from the top of Lincoln Hill to the lowest point in the open pit is almost 500 metres.
The resource estimates are based on 100 exploration drillholes. There were a total of 5,495 three-metre-length composites used in the estimation of gold and 5,495 three-metre-length composites used in the estimation of silver. The results were calculated using Vulcan software and stored in a Vulcan block model. SEWC used Inverse Distance Cubed as the preferred estimation technique for the Lincoln Hill resource.
Mineral resources are not mineral reserves and do not have demonstrated economic viability.
"Rye Patch Gold US Inc. has delivered substantial bulk-tonnage, open pit measured and indicated resources sitting at the front door of Barrick's Spring Valley deposit and Coeur's Rochester Mine. I see a compelling future building for the district that is filled with growth and opportunity. I envision extending the operating life in the district, increasing employment requirements, and providing sustainability and stability for all stakeholders. That's a positive message that I believe everyone living and operating in the area can get behind and work toward making a reality," stated William C. Howald, President and CEO of Rye Patch Gold Corp.
The resource is classified using a combination of distance to the nearest sample, the number of samples, and number of holes used to estimate each block, while also taking into account project history, database quality, sample integrity and geologic understanding. Additional drilling may result in upgrading the inferred resource to measured and indicated resources.
SEWC used industry-accepted standards to reclassify this resource calculation. Geologic interpretations were incorporated into the resource for greater confidence in the resource estimate. Cut-off grades were calculated based on referencing up-to-date costing structures that are publically available.
Scott E. Wilson Consulting, Inc. (SEWC) of Denver, Colorado completed the new resource estimate under the direction of Scott E. Wilson who is a qualified person as defined by National Instrument 43-101 ("NI43-101"). Mr. Wilson is responsible for, and approves of, the technical disclosure in this news release. An updated NI43-101 Wilco project technical report will be posted on SEDAR at www.sedar.com within 45 days of this news release.
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.