Rye Patch
Starts Drilling on Jefferson Zone at Lincoln Hill
Vancouver,
British Columbia, May 24, 2011 - Rye Patch Gold Corp (TSX.V: RPM; OTCQX:
RPMGF) ("Rye Patch" or the "Company") starts drilling on
the company's 100% controlled Lincoln Hill project along the emerging Oreana gold and silver trend located in Nevada.
HIGHLIGHTS
- Drill
program begins with follow-up program along the newly discovered 1.5 kilometre Jefferson zone;
- Program
will target high-grade intersection zones similar to the Lincoln Hill
resource (21.3 meters grading 27.2 g/t gold and 34 g/t silver);
- A
geophysical survey suggests a third target located west of the Jefferson
zone along a parallel dyke swarm; and
- The
drill program will consist of 7,000 metres of
RC and core.
On January 12, 2011, Rye Patch reported results of the fall 2010
Lincoln Hill drill program. The Company completed 15 drillholes
totaling 2,403 metres using a reverse circulation
drill rig. The successful program identified the Jefferson zone, and expanded
the footprint of the Lincoln Hill resource. The Jefferson zone's geophysical
signature is traceable for 1.5 kilometres, and
drilling along a one-kilometer portion of the Jefferson zone returned
significant gold and silver assays associated with a northwest oriented mafic
dyke system.
"We are excited to
return to Lincoln Hill and start drilling on the newly identified Jefferson
zone. The program will focus on expanding the Lincoln Hill resource (380,000
ounces of gold and 9,488,000 ounces of silver in the inferred category), and
quantifying the newly identified Jefferson zone. The Jefferson zone strike
length is twice the length of the Lincoln Hill resource and has potential to
add significantly to the overall Lincoln Hill resource. The program is
targeting the flat-lying favorable lithologic zones
that show potential to build the resource. Synthesis of the surface
geophysical data indicates a third zone (parallel dyke system) located to the
west of the Jefferson zone", stated William C. (Bill) Howald, the Company's President and CEO.
The Jefferson zone has similar geologic characteristics to the Lincoln Hill
resource. Within the Lincoln Hill resource, gold and silver is associated
with a northwest oriented high-angle dyke system. Where the dykes cross cut
receptive rhyolite units, the mineralization is flat lying and high grade.
The flat lying strataform zones can rapidly build
gold and silver ounces within the resource area. The rhyolite beds are folded
with fold axis oriented to the northeast. At the intersection of the
receptive rhyolite unit, the mafic dykes, and the fold axis, high-grade gold
and silver have been intersected in drilling. An example of this style of
mineralization was encountered in RC drillhole
LR-013 which returned 27.2 g/t gold and 34 g/t silver over 21.3 metres starting at 23 metres,
and core hole, LRC-002, returned 21.19 g/t gold and over 7.0 metres starting at 25.3 metres
(See the Company's news release dated December 10, 2009). The Jefferson zone
has potential for similar intersection zones along its 1.5 kilometre length.
The ore controls and lithologies within the
Jefferson zone show similar characteristics to the main Lincoln Hill
resource; however, the strike length of the Jefferson zone dyke system is
twice the length of the Lincoln Hill resource. Significant expansion and
upside potential exists along the Jefferson zone, and the drill program will
test expansion potential on this newly identified gold and silver zone, and
additional target defined in the ground geophysical survey.
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 along the Oreana
trend 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 2 summarizes Rye Patch Gold's precious metal
inventory in Nevada, USA.
Table 2: Rye Patch Gold's NI43-101
Resource Inventory (1)
|
Property
|
Resource
Category
|
Tonnes (X 1,000)
|
Gold Grade (g/t)
|
Silver Grade (g/t)
|
Contained Gold Ounces
|
Contained Silver Ounces
|
Contained Gold & Gold Equivalent
Ounces (4)
|
Wilco (2)
|
Measured
|
7,526
|
0.69
|
4.595
|
164,000
|
1,111,000
|
186,220
|
Indicated
|
30,844
|
0.51
|
3.601
|
522,000
|
3,638,000
|
594,760
|
Inferred
|
121,838
|
0.41
|
5.075
|
1,660,000
|
19,871,000
|
2,057,420
|
Jessup(2)
|
Measured
|
7,775
|
0.51
|
8.745
|
128,000
|
2,184,000
|
171,680
|
Indicated
|
12,642
|
0.41
|
7.167
|
172,000
|
2,906,000
|
230,120
|
Inferred
|
4,494
|
0.55
|
7.922
|
77,000
|
1,146,000
|
99,920
|
Lincoln Hill (3)
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
Indicated
|
-
|
-
|
-
|
-
|
-
|
-
|
Inferred
|
17,215
|
0.69
|
17.143
|
380,000
|
9,488,000
|
569,760
|
Total Oreana
Trend Measured & Indicated Resources
|
986,000
|
9,839,000
|
1,182,780
|
Total Oreana
Trend Inferred Resources
|
2,117,000
|
30,505,000
|
2,727,100
|
(1) All resources on 100% basis. Metallurgical recoveries and net smelter
returns are assumed to be 100%. Conforms to 43-101 resource definitions;
(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
(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;
(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.
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 maintains a strict quality control program at all of its
projects. Drill samples are picked up by American Assay's preparation and
analytical facility located in Reno, 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 a four-acid digestion and an AA finish.
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 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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