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NEWS RELEASE
No. 10 - 13 |
Rye Patch Gold Leases Wilco Geothermal Rights
Vancouver, British Columbia, July 28, 2010 - Rye Patch Gold Corp (TSX-V: RPM; OTC: RPMGF) ("Rye Patch" or the "Company") reports it has leased the geothermal rights on its 100% owned Wilco gold project to Wilco Energy LLC, a non-related company. Rye Patch controls geothermal rights on a portion of the Wilco property adjacent to the Colado gold/silver resource area located in sections 25 and 35 along the western portion of the Wilco property.
"While gold and silver remain Rye Patch's focus, this is an example of how the Company is looking for innovative ways to create additional shareholder value from its property portfolio. In concert with Wilco Energy LLC, the Company will have the ability to use the information generated by the geothermal exploration program to augment and assist its gold and silver exploration program at Wilco. The successful delineation of a geothermal field would give the Wilco project the ability to capitalize on the availability and utility of 'Green Energy' to supply a potential mining operation as well as providing Rye Patch with royalty revenue to supplement future exploration programs in Nevada", stated William C. (Bill) Howald, the Company's CEO and President.
Wilco Energy LLC is leasing the geothermal rights on 1,240 acres (502 hectares) of the Wilco property for an initial rental payment covering a period of three years with increases in rental payments at four and six years. If a geothermal field is identified within the project area, Rye Patch will receive a gross proceeds royalty from the sale of electric power. Lease rental payments are creditable to the royalty. Wilco Energy LLC is obligated to spend a minimum amount on geothermal exploration within the project area before July 20, 2011. If Wilco Energy LLC is unable to complete the first year Work Commitment then Wilco Energy LLC will pay Rye Patch the difference between the amount committed and the actual amount expended. The initial term of the lease is 15 years and can be extended for an additional 10 years at Lessee's option.
Drilling by Rye Patch as well as historic drilling in the Colado area has encountered warm to hot water in a majority of the drillholes. Temperature measurements from the Rye Patch drillhole collars have returned values in excess of 100 degrees Celsius in several drillholes. Following commencement of the geothermal exploration program, Rye Patch will keep investors apprised of significant results and milestones achieved by the program.
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 equivalent in the measured and indicated category plus 2,727,100 ounces of gold equivalent in the inferred category. The following table summarizes Rye Patch Gold's precious metal inventory in Nevada, USA.
| 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 Au
& Au 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 Measured & Indicated Resources |
986,000 |
9,839,000 |
1,182,780 |
| Total 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 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 Corp. is a well-funded, 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 and Gold Ridge projects located along 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
Investor Relations
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.
Suite 1740 - 1177 West Hastings St., Vancouver, BC, V6E 2K3, Canada
Phone 604-638-1588 Fax 604-638-1589 www.ryepatchgold.com |