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NEWS RELEASE
No. 08 - 16 |
Rye Patch Gold Begins 2008 Drilling on Wilco Project to Expand Known Gold Resource Areas and to Test New Targets
Vancouver, British Columbia, June 17, 2008 - Rye Patch Gold Corp. (TSX-V: RPM and RPM.WT) ("Rye Patch" or the "Company") announces drilling has commenced on its 100% controlled Wilco project. A total of 8,000 metres of reverse circulation drilling is planned and permitted in this campaign that will target new high-grade gold along the east-west oriented Willard fault zone, test new target areas, and quantify, through step-out drilling, the limits of the Section Line deposit. Eklund Drilling of Elko, Nevada is completing the reverse circulation drill program.
In addition, the Company has identified three new target areas on the project. The first is located at the old Willard Mine (OWM). The OWM exploited gold along an east-west oriented silicified fault structure. This fault is similar and parallel to the east-west Willard fault zone that hosts higher grade gold within the Willard mine area. Drill testing along the fault at the intersection of the postulated thrust system may yield another bulk-tonnage, deposit similar to the Section Line discovery.
The Company has recently extended detailed surface mapping and sampling into the under-explored area south of the Willard mine area. The region is underlain by the prospective, highly fractured and altered siltstone that hosts the Willard gold resource. These rocks are cut by a major east-west trending high-angle fault and associated zone of silicification, brecciation and epithermal-style quartz veining. The surface exposure of this new promising structure ranges from 10 to 30 metres in thickness and can be traced on surface for 300 metres along strike. This newly identified target has not been drill tested and has returned gold values from surface rock-chip sampling of outcrops of silicified siltstone exposed randomly along an east-west structural trend. A summary of assay results received from these two targets are tabulated below.
Table 1: Surface rock-chip sample assays
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Area Sample ID Sample Type Gold g/t
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Old Willard Mine 123396 Rock Chip 3.095
Old Willard Mine 123397 Rock Chip 0.484
Old Willard Mine 47565 Rock Chip 0.235
Old Willard Mine 47566 Rock Chip 2.603
Old Willard Mine 47567 Rock Chip 0.164
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Area Sample ID Sample Type Gold g/t
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South Willard 47551 Rock Chip 0.229
South Willard 47552 Rock Chip 0.435
South Willard 47553 Rock Chip 1.225
South Willard 47554 Rock Chip 2.165
South Willard 47555 Rock Chip 4.904
South Willard 47556 Rock Chip 0.835
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During the 2007 drill program at Colado, another new zone of gold mineralization was discovered roughly 600 metres south of the Colado gold resource and 1.2 kilometres west of the Section Line discovery and centered on drillhole WR-046. The mineralized Willard thrust system is postulated to occur beneath the Colado gold resource and could also exist within this new target area. Drilling in the WR-046 area and within the main Colado resource will test this idea.
"We are very pleased to start the drilling program at Wilco which will have three main objectives - target higher grade gold along the east-west structural corridors; complete step-out drilling on the Section Line discovery to define overall size of the deposit; and test the newly identified targets at the old Willard mine, the south area, and beneath the Colado resource. Our geologic model indicates potential for expanding the Section Line deposit toward the west, and the newly identified targets have potential for additional new inferred gold ounces for the Wilco project. The geologic team is focused on targeting higher grade gold, oxidized material, and increasing the Wilco gold resource. Based on their performance to date, I believe they will successfully achieve these objectives and much more", declared Rye Patch's CEO and President, William C. (Bill) Howald.
As released on the Company's Wilco project on May 12, 2008, and on the Jessup project in December 11, 2007, Rye Patch Gold now controls 779,517 ounces of gold in the measured and indicated category plus 1,151,776 ounces of gold in the inferred category. The table below summarizes the resources for Rye Patch Gold's advance projects.
Table 2: Rye Patch Gold's NI43-101 Gold Resource Inventory
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Resource Category
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Measured Indicated
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Project Cutoff Tons Grade Gold Tons Grade Gold
Grade (X1,000) OPT Au Ounces (X1,000) OPT Au Ounces
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Wilco Variable(2) 8,091 0.018 146,701 32,950 0.015 478,816
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Jessup(4) Variable(3) 0 0 0 5,423 0.022 154,000
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Total 8,091 0.018 146,701 38,373 0.016 632,816
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Resource Category
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Inferred
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Project Cutoff Tons Grade Gold
Grade (X1,000) OPT Au Ounces
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Wilco Variable(2) 99,978 0.011 1,124,776
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Jessup(4) Variable(3) 1,265 0.017 27,000
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Total 101,243 0.011 1,151,776
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(2) Measured and Indicated resource is reported at 0.0056 opt Au for
oxide mineralisation and 0.042 opt Au for sulphide mineralisation. The
Inferred resource is reported at 0.0056 opt 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. (3)Jessup 0.01 oz Au/t for oxide mineralisation,
0.015 oz Au/t for mixed material, and 0.025 oz Au/ton for all
unoxidised material; (4)Jessup Resource includes Au equivalent ounces
(50g/t Ag equals 1g/t Au).
Dr. Radu Conelea, AIPG Certified Professional Geologist #06871, Rye Patch Gold's Chief Geologist, is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the exploration program. He has verified the information and has reviewed and approved the contents of this news release.
Rye Patch Gold maintains a strict quality control program. Wilco rock samples were submitted directly to Inspectorate for preparation, and analysis in Reno, Nevada. Analysis was conducted on 1 assay ton samples. Analysis of gold was by fire assay, with an atomic absorption finish.
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. The Company is seeking gold opportunities that continue to create shareholder value and leverage the gold price. The Company's goal is to have 5-million ounces of gold inventory within the next 3 years. 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:
Karen Robb, Manager Investor Relations
Rye Patch Gold Corp.
info@ryepatchgold.com
Tel.: (604) 638-1588
Fax: (604)638-1589
www.ryepatchgold.com
Renmark Financial Communications Inc.
Christine Stewart, Account Manager
cstewart@renmarkfinancial.com
Tel.: (416) 644-2020
Fax: (514) 939-3717
www.renmarkfinancial.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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