 |
NEWS RELEASE
No. 09 - 10 |
Rye Patch Updates Jessup Gold And Silver Resource Estimate
Vancouver, British Columbia, June 2, 2009 - Rye Patch Gold Corp (TSX-V: RPM; OTC: RPMGF) ("Rye Patch" or the "Company") announces an updated NI43 101 compliant resource estimate for the Jessup project based on the Company's 2008 drill results at the San Jacinto, North Jessup and Tosh Hill areas. The resource estimate shows an increase from the previously released (December 2007) estimate of 150% to 300,000 ounces of gold in measured and indicated category while the inferred gold ounces increased 250% to 77,000 ounces of gold. In addition, the Company updated the silver resource associated with the gold block model. A significant increase in the silver resource, as compared to the reported December 2007 estimate, is evident. The measured and indicated silver ounces increased to 5,090,000 ounces of silver from 1,655,000 ounces of silver, and the inferred resource increased from 286,000 ounces of silver to 1,146,000 ounces of silver. A summary is tabulated below:
Table 1: New NI43-101 Jessup Gold Resource Estimate
|
Jessup Resource Areas |
Resource Category |
|
Cutoff Grade |
Measured |
Indicated |
Inferred |
|
Tons (X1,000) |
Grade OPT Au |
Gold Ounces |
Tons (X1,000) |
Grade OPT Au |
Gold Ounces |
Tons (X1,000) |
Grade OPT Au |
Gold Ounces |
|
San Jacinto |
Variable (1) |
4,866 |
0.014 |
66,000 |
7,939 |
0.012 |
95,000 |
2,473 |
0.015 |
38,000 |
|
North Central |
Variable (1) |
3,564 |
0.017 |
60,000 |
5,505 |
0.013 |
70,000 |
2,038 |
0.016 |
32,000 |
|
Tosh Hill |
Variable (1) |
142 |
0.014 |
2,000 |
492 |
0.014 |
7,000 |
442 |
0.016 |
7,000 |
|
Total |
8,571 |
0.015 |
128,000 |
13,936 |
0.012 |
172,000 |
4,954 |
0.016 |
77,000 | (1) Measured and Indicated resource is reported at 0.005 opt Au for oxide mineralisation and 0.010 opt Au for transition and sulphide mineralisation. The Inferred resource is reported at 0.005 opt Au for oxide, transition, and sulphide 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.
Table 2: New NI43-101 Jessup Co-Product Silver Resource Estimate
|
Jessup Resource Areas |
Resource Category |
|
Cutoff Grade |
Measured |
Indicated |
Inferred |
|
Tons (X1,000) |
Grade OPT Ag |
Silver Ounces |
Tons (X1,000) |
Grade OPT Ag |
Silver Ounces |
Tons (X1,000) |
Grade OPT Ag |
Silver Ounces |
|
San Jacinto |
Variable (1) |
4,866 |
0.278 |
1,352,000 |
7,939 |
0.215 |
1,704,000 |
2,473 |
0.278 |
687,000 |
|
North Central |
Variable (1) |
3,564 |
0.230 |
820,000 |
5,505 |
0.211 |
1,163,000 |
2,038 |
0.205 |
417,000 |
|
Tosh Hill |
Variable (1) |
142 |
0.085 |
12,000 |
492 |
0.079 |
39,000 |
442 |
0.095 |
42,000 |
|
Total |
8,571 |
0.255 |
2,184,000 |
13,936 |
0.209 |
2,906,000 |
4,954 |
0.231 |
1,146,000 | (1) The silver tons and grade represent co-product silver within the gold block model of the resource estimate.
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 NI43 101. The updated NI43-101 Jessup project technical report will be posted on SEDAR at www.sedar.com.
"The 2008 Jessup drilling program was very successful in expanding the deposit and upgrading the resource in the measured and indicated categories. The near-surface oxide is still open, and several exciting new high-grade targets have been identified at San Jacinto and North Jessup. The Company is defining resources at an approximate cost of US$1 per ounce of gold and gold equivalent in all categories and at an approximate cost of US$3.50 per ounce for measured and indicated gold and gold equivalent ounces. As a comparison, global finding costs are approximately US$50 per ounce for greenfield projects and US$16 per ounce for near mine exploration. Rye Patch's finding costs are very robust and are a testament to the quality and efficiency of its exploration staff", declared William C. (Bill) Howald, the Company's CEO and President.
Based on the new geologic model, gold and silver mineralisation is open down dip and along strike to the northwest of the San Jacinto deposit. The oxide material starts at the surface, has been drilled to a depth of 125 metres (410 feet), and is still open. In addition, the drilling has defined high-grade gold and silver breccias. The geologic and block models show mineralization is open at depth and along strike. Based on gold and silver assay results of the 2008 drilling program, drillholes that encountered breccias show higher grade mineralization; therefore, the breccias represent an exciting and potentially higher grade target on the Jessup property.
At North Jessup, gold and silver are open at depth and along strike to the northwest and northeast. The mineralized structures have elevated grades and are open along strike to the northwest and at depth. These oxide targets and extensions have been prioritized for follow up drilling.
At Tosh Hill, the high-grade structurally controlled gold and silver is open to the west-northwest and east-southeast. Surface rock-chip channel samples across the Tosh Hill structure (news release 07-08) show the vein-like structural control has potential for gold values of 16 g/t Au. The Tosh Hill target requires additional follow-up drilling to understand the high-grade gold zone.
The updated gold resource estimate is based on 3-D geologic models that incorporated over 20,000 individual gold and silver assays from 36 trenches and 335 drillholes -- 56 rotary, 270 reverse circulation, and 9 core drillholes including Rye Patch's 2008 45 reverse circulation drillholes. Block model grades were interpolated from twenty-foot, down-the-hole composites using inverse distance squared. No capping was required. The silver resource was prepared using the same geologic and estimation parameters as the gold block model estimation.
SEWC used industry-accepted standards to reclassify this new resource. Geologic interpretations were incorporated into the new resource which give greater confidence to the resource estimate. Cut-off grades were calculated based on referencing up-to-date costing structures that are publically available.
SEWC classified the Jessup resource by a combination of distance to the nearest sample, the number of samples, and number of holes used to estimate a block, while also taking into account project history, database quality, sample integrity and geologic understanding.
As released today on the Company's Jessup project, and on the Wilco project on May 11, 2009, Rye Patch Gold resources now consist of 1,164,000 ounces of gold and gold equivalent in the measured and indicated category plus 2,177,315 ounces of gold and gold equivalent in the inferred category. Table 3 summarizes Rye Patch Gold's precious metal inventory in Nevada, USA.
|
Table 3: Rye Patch Gold�s NI43-101 Resource Inventory |
|
Property |
Resource
Category 1 |
Tons
(X 1,000) |
Gold
Grade
opt
|
Silver
Grade
opt |
Contained
Gold
Ounces |
Contained
Silver
Ounces |
Contained
Gold & Gold Equiv.
Ounces 3 |
|
Wilco 2 |
Measured
Indicated
Inferred |
8,296
34,660
134,303 |
0.020
0.015
0.012 |
0.134
0.105
0.148 |
164,000
522,000
1,660,000 |
1,111,000
3,638,000
19,871,000 |
188,000
600,000
2,084,315 |
|
Jessup 2 |
Measured
Indicated
Inferred |
8,571
13,936
4,954 |
0.015
0.012
0.016 |
0.255
0.209
0.231 |
128,000
172,000
77,000 |
2,184,000
2,906,000
1,146,000 |
161,000
215,000
93,000 |
|
Total Measured Resources
Total Indicated Resources
Total Inferred Resources |
292,000
694,000
1,737,000 |
3,295,000
6,544,000
21,017,000 |
349,000
815,000
2,177,315 | 1 Conforms to 43-101 definitions for resources. All numbers are rounded.
2 Cutoff grade for Wilco 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. Cut-off grade for Jessup is reported at 0.005 opt Au for oxide mineralisation and 0.010 opt Au for transition and sulphide mineralisation;
3 Wilco and Jessup Resource includes Au equivalent ounces (Aueq.); where Aueq. = (Ag opt X $Ag/oz) + (Au opt X $Au/oz)/$Au/oz, for Au/oz = $750, and Ag/oz = $16. Metallurgical recoveries and net smelter returns are assumed to be 100%.
Mr. William Howald, AIPG Certified Professional Geologist #11041, Rye Patch Gold's CEO and President, is the Qualified Person as defined under National Instrument 43-101. 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 at all of its projects. Drill samples are picked up on site by ALS Chemex's preparation and analytical facility located in Nevada. Gold analyses are conducted on 1-assay ton prepped samples with gold determined using industry standard fire assay methods, with an atomic absorption finish. Gold over limits are determined using fire assay with a gravimetric finish. Silver is analyzed using ICP-MS with silver over limits determined using aqua-regia digestion with an ICP-AES or AAS finish. Gold and Silver check assays were delivered to Florin Analytical Services LLC of Reno, Nevada. The check assay program repeated gold and silver determinations for approximately 5-percent of the 2007 and 2008 drill programs.
Rye Patch Gold Corp. 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 project located within the emerging Oreana gold trend in west-central Nevada and the Jessup project in Churchill County, 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
Karen Robb, Manager, Investor Relations
nfo@ryepatchgold.com
Tel.: (604) 638-1588
Fax: (604) 638-1589
www.ryepatchgold.com
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.
Suite 1740 - 1177 West Hastings St., Vancouver, BC, V6E 2K3, Canada
Phone 604-638-1588 Fax 604-638-1589 www.ryepatchgold.com |