Rye Patch Gold Adds Jessup to 2011 Program and Budget
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 04/20/11 -- Rye Patch Gold Corp. (TSX VENTURE: RPM)(OTCQX: RPMGF) ('Rye Patch' or the 'Company') is pleased to add the Jessup property as one of the targets for the 2011 drilling season. As announced on February 17, 2011, the Company is planning drilling programs on its 100% controlled Wilco, Lincoln Hill, Gold Ridge and Garden Gate Pass projects with a total expenditure of $3.5 million. The addition of the Jessup program will boost the total 2011 expenditure to approximately $4 million. The Jessup program will increase expenditure along the Oreana trend from $2.25 million to $2.65 million. Rye Patch Gold has sufficient funds in its treasury to follow up on success at any or all of the 2011 drill programs.
The Jessup drilling will:
-- focus on expanding the North Jessup deposit to the northwest;
-- follow up on extensions of the San Jacinto deposit toward the south;
-- address a new target located along the north-northwest oriented Jessup
structural zone adjacent to an altered rhyolite dome; and
-- cost $400,000 and 2,000 metres is being permitted.
During the 2010 Jessup drilling program, two new areas were drilled and showed expansion potential of the existing gold and silver resource. At the North Jessup deposit, gold and silver mineralization are open to the northwest along the margins of the North Jessup graben. The 2011 program will follow up on drillhole intercepts on the northern side of the North Jessup deposit. At North Jessup along the graben structure, JR-10-051 returned 15.2 meters grading 1.55 g/t gold, and a second drillhole, JR-10-052, yielded 2.68 g/t gold over 3 metres. The North Jessup mineralization is open and the 2011 drill program will address the extent of the structural zone.
At the San Jacinto zone, drilling in 2010 identified the extension of the San Jacinto mineralization to the south associated with hydrothermal breccias and a geophysical anomaly manifested as a magnetic low. The 2011 program will address this mineralization by following the breccia zone southeast under post-mineral volcanics. The ground magnetic geophysical survey will guide the drilling program.
The magnetic geophysical survey has identified an additional drill target. Drilling will address a series of altered rhyolite domes associated with a magnetic low. The domes appear to have a mushroom shape, and gold and silver mineralization could be associated with the stem of the mushroom in the area of the magnetic low.
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 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.
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Table 2: Rye Patch Gold's NI 43-101 Resource Inventory(1)
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Contained
Gold
& Gold
Gold Silver Contained Contained Equiv-
Resource Tonnes Grade Grade Gold Silver alent
Property Category (X 1,000) (g/t) (g/t) Ounces Ounces Ounces(4)
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Measured 7,526 0.69 4.595 164,000 1,111,000 186,220
Wilco(2) 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
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Measured 7,775 0.51 8.745 128,000 2,184,000 171,680
Jessup(2) 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
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Lincoln Measured - - - - - -
Hill Indicated - - - - - -
(3) Inferred 17,215 0.69 17.143 380,000 9,488,000 569,760
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Total Measured & Indicated Resources 986,000 9,839,000 1,182,780
Total Inferred Resources 2,117,000 30,505,000 2,727,100
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(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.
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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 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 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 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.
Contacts:
Rye Patch Gold Corp.
William C. (Bill) Howald
CEO & President
(604) 638-1588
(604) 638-1589 (FAX)
info@ryepatchgold.com
www.ryepatchgold.com