About Rye Patch Gold

This author has not yet filled in any details.
So far Rye Patch Gold has created 30 blog entries.

RYE PATCH GOLD CLOSES $10 MILLION BOUGHT DEAL OFFERING

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE
A VIOLATION OF U.S. SECURITIES LAWS

VANCOUVER, BC June 29, 2017 – Rye Patch Gold Corp. (Rye Patch” or the “Company”) (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) is pleased to announce the completion of its prospectus offering announced on June 6, 2017 whereby the Company issued a total of 38,470,000 common shares of the Company (“Shares”) at a price of $0.26 per Share for gross proceeds of $10,002,200 (the “Offering”). Rye Patch has also granted the underwriters an over-allotment option to purchase up to an additional 5,770,500 Shares at $0.26 per Share, exercisable in whole or in part until 30 days after the date of closing of the Offering.

The Offering was led by PI Financial Corp., and included Canaccord Genuity Corp. and Industrial Alliance Securities Inc., as underwriters. The Company paid the underwriters a cash commission of 5% of the gross proceeds of the Offering. The Company also issued the underwriters compensation options exercisable for the purchase of a total of 769,400 Shares at $0.26 per Share until December 29, 2018.

The Company intends to use the net proceeds of the Offering for continued expansion of the Florida Canyon Gold Mine, additional haulage equipment at the mine, resource development and exploration drilling at the mine, and working capital.

The Offering is subject to final approval of the TSX Venture Exchange.

The securities issued or issuable in connection with the Offering have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Rye Patch Gold Corp.

Rye Patch Gold Corp. is a Nevada focused, Tier 1, precious metal mining company engaged in the mining, development and exploration of a 180 square kilometre land package along the prospective Oreana trend in west central Nevada. Leveraging its strong financial position and cash to acquire the Florida Canyon Gold mining operation, Rye Patch now controls a trend-scale platform with mining operations, resource projects and significant exploration potential. The combination of mining and a growth profile along a major Nevada gold trend positions Rye Patch to become an emerging North American mid-tier precious metal producer. For more information, 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

Forward-looking Statements

This news release contains “forward-looking statements” within the meaning of Canadian securities legislation. Such forward looking statements concern the net proceeds from the Offering and the intended use of proceeds. Such forward looking statements or information are based on a number of assumptions, which may prove to be incorrect. Assumptions have been made regarding, among other things: capital required for mine development and expansion, conditions in general economic and financial markets; timing and amount of capital expenditures; fluctuations in currency markets and effects of regulation by governmental agencies. The actual results could differ materially from those anticipated in these forward looking statements as a result of the risk factors including: the capital required for mine developments and expansion, the timing and content of work programs; results of exploration activities of mineral properties; the interpretation of drilling results and other geological data; fluctuations in exchange rates (particularly the Canadian dollar and U.S. dollar) 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, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made. The Company undertakes no obligation to update or revise any forward-looking statements included in this news release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.

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.

June 29th, 2017|

RYE PATCH GOLD ANNOUNCES APPOINTMENT OF INVESTOR RELATIONS CONSULTANT

Vancouver, British Columbia, April 13, 2017 – Rye Patch Gold Corp. (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) (the “Company” or “Rye Patch”) announced today that it has engaged SRC Swiss Resource Capital AG (“SRC”) to provide investor relations and corporate communications for the Company.  SRC is a Switzerland-based company which provides value for its clients through clear and concise delivery of information pertaining to the precious metals and resource sector.

Pursuant to the investor relations agreement, Jochen Staiger, Chief Executive Officer of SRC, will oversee all investor relations services in Europe on behalf of Rye Patch, which includes disseminating investor relations information and communication in the German speaking financial community, for a 12-month period.  Jochen Staiger has over 16 years experience in the precious metals industry and started in 2001 as an asset manager with investments in precious metals and mining stocks.  Since 2008, Mr. Staiger has built his European business in investor communications, social media and investor relations.  In 2012, Mr. Staiger founded Commodity-TV and Rohstoff-TV.

At the election of Rye Patch, SRC may also perform additional services (the “Additional Services”), including representing Rye Patch at roadshow tours, stock days in Germany and such other events.

In consideration for the services provided, Rye Patch will pay SRC a fee of CDN $3,900 per month and grant a stock option to SRC  to acquire up to 250,000 common shares of the Company at a price of $0.40 per share for a term of three (3) years (the “Base Compensation”). Compensation with respect to the Additional Services is not included in the Base Compensation and will be determined and invoiced separately.  The foregoing is subject to TSX Venture Exchange approval.

About Rye Patch Gold Corp. 

Rye Patch Gold Corp. is a Nevada based, Tier 1, mining company engaged in the mining and development of quality resource-based gold and silver mines and projects along the established Oreana trend in west central Nevada. Leveraging its strong financial position and cash to acquire the operating Florida Canyon Gold Mine, Rye Patch Gold Corp. now controls a trend-scale platform with operations, replacement assets and exploration upside. The combination of operations and exploration concentrated along a major Nevada gold trend positions Rye Patch as an emerging mid-tier gold producer with tremendous value added potential. For more information, 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

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.

April 13th, 2017|

RYE PATCH RECEIVES STATE APPROVAL TO IRRIGATE NEW PAD

Florida Canyon Mine Re-Start Complete

Vancouver, British Columbia, March 30, 2017 – Rye Patch Gold Corp. (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) (the “Company” or “Rye Patch”) reports it has received approval from the Bureau of Mining Regulation and Reclamation to start irrigation on the new South Heap Leach Pad (“South Pad”).  In spite of the severe winter weather this year, the Florida Canyon mine re-start has been successfully completed.

Mining, crushing and loading of the South Pad are ramping up and are nearing 70% of the forecast production rate coming into the end of the first quarter.  Optimizing and maximizing performance of the mine will take place over the second quarter with commercial production anticipated by mid-2017.

“It’s with a great sense of accomplishment and pride that the Florida Canyon team has completed the re-start of the mine,” said President and CEO William Howald.  “This accomplishment launches Rye Patch as a tenacious gold producer with a bright future with its pipeline of existing resource assets and exploration upside along the Oreana trend.”

The final Nevada Department of Wildlife (“NDOW”) site inspection has been scheduled.  The first gold pour from the South Pad is projected in April 2017.

About Rye Patch Gold Corp.  

Rye Patch Gold Corp. is a Nevada based, Tier 1, mining company engaged in the mining and development of quality resource-based gold and silver mines and projects along the established Oreana trend in west central Nevada. Leveraging its strong financial position and cash to acquire the operating Florida Canyon Gold Mine, Rye Patch Gold Corp. now controls a trend-scale platform with operations, resource assets and exploration upside. The combination of operations and exploration concentrated along a major Nevada gold trend positions Rye Patch as an emerging mid-tier gold producer with tremendous value added potential. For more information, 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

Forward-Looking Statements

This news release contains forward-looking statements relating to future plans and objectives of the Company, proposed operations of the Company including mine development, funding requirements, future events and conditions and other statements that are not historical facts, all of 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 requirement of the Company to satisfy the conditions for drawdowns in the credit agreement entered into with Macquarie Bank Limited (“Credit Facility”), the achievement of mine redevelopment plans and production results; the availability of funds; the financial position of Rye Patch; the timing and content of work programs; the results of exploration activities and development of mineral properties; the interpretation of drilling results and other geological data; the reliability of calculation of mineral resources; the reliability of calculation of precious metal recoveries; the 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. As a result, the Company cannot guarantee that the drawdowns under the Credit Facility and the Florida Canyon mine redevelopment will be completed on the terms and within the time disclosed herein or at all.

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.

March 30th, 2017|

Rye Patch Announces Filing of NI 43-101 Technical Report on the Florida Canyon Mine Project

Vancouver, British ColumbiaJuly 8, 2016 – Rye Patch Gold Corp (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) (the “Company” or “Rye Patch”) is pleased to announced that it has completed a technical report prepared in accordance with National Instrument 43-101 (“NI 43-101”) on the Florida Canyon Mine Project. The filing of this technical report supports the disclosure made by the Company in its news release on May 25, 2016 entitled “Rye Patch Signs Agreement to Acquire Florida Canyon Gold Mine and Commitment Letter for a US$27 Million Credit Facility for Mine Restart”.

The technical report is entitled “Technical Report” Preliminary Economic Assessment for the Florida Canyon Mine, Pershing County, Nevada USA” effective March  16, 2016, dated April 18, 2016 and revised June 22, 2016 and was prepared by an independent “Qualified Person” (as that term is defined in NI 43-101) Neil B. Prenn (P. Eng) of Mine Development Associates.

The technical report will be available today on both SEDAR (www.sedar.com) and the Company’s website (www.ryepatchgold.com).

About Rye Patch Gold Corp.
Rye Patch Gold Corp. is a Tier 1, well-funded junior mining company led by a seasoned management team that has participated in major discoveries totaling over 100-million ounces of gold. The team is engaged in the acquisition, exploration and development of quality resource-based gold and silver projects along the emerging Oreana trend and the prolific Cortez trend. Benefitting from its strong financial position, the Company’s strategy is to balance development and exploration risk, creating value by:

  • Advancing the Lincoln Hill project toward production;
  • Pursuing a world class discovery – Garden Gate and Patty – contiguous to and on strike with Barrick’s Goldrush deposit; and
  • Seeking new project opportunities and accretive transactions.

The Company’s cash and cash flowing royalty allow for progress without dilution to shareholders. For more information about the Company, 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

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.

July 8th, 2016|

Rye Patch Announces Completion of Cdn$49.1 Million Private Placement of Subscription Receipts to fund Florida Canyon Gold Mine Acquisition

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Vancouver, British Columbia, June 16, 2016 – Rye Patch Gold Corp. (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) (the “Company” or “Rye Patch”) is pleased to announce that, further to its news release of June 2, 2016, the Company has completed a private placement of 223,247,242 subscription receipts of the Company (“Subscription Receipts”) at Cdn$0.22 per Subscription Receipt for gross proceeds of Cdn$49,114,393 (the “Offering”). The private placement was completed through a syndicate of agents (the “Agents”) co-led by Macquarie Capital Markets Canada Ltd. and Canaccord Genuity Corp. (the “Lead Agents”), and including Dundee Securities Ltd. and GMP Securities L.P., and included the exercise of an over-allotment option granted to the Agents.

The net proceeds from the Offering will be used to finance, in part, the purchase price under the Company’s agreement (the “Acquisition Agreement”) to acquire 100% ownership of the Florida Canyon gold mine (with the Standard gold mine) located in Pershing County, Nevada and related assets (the “Acquisition”) announced in its news release of May 25, 2016, as well as certain working capital and corporate requirements needed to redevelop and expand the Florida Canyon gold mine. Closing of the Acquisition is anticipated to occur on or before July 31, 2016, subject to regulatory approvals and satisfying conditions of closing under the Acquisition Agreement.

Each Subscription Receipt will entitle the holder to receive one common share of Rye Patch (a “Common Share”), without additional payment or further action on the part of the holder, when all conditions precedent to the completion of the Acquisition, completion of a related US$27 million credit facility from Macquarie Bank Limited (the “Credit Facility”), and conversion of the Subscription Receipts are satisfied or waived by the applicable parties. The gross proceeds from the Offering will be held in escrow pending satisfaction or waiver of these conditions precedent. If the conversion of the Subscription Receipts does not occur before 5 p.m. (Vancouver time) on August 31, 2016 (except as extended with the consent of the Lead Agents) or if the Acquisition Agreement is terminated at any earlier time, the holders of the Subscription Receipts will be entitled to a return of their full subscription price and their pro rata entitlement to the interest earned on the escrowed funds.

The Subscription Receipts and the underlying Common Shares will be subject to a four-month hold period under Canadian securities laws expiring on October 17, 2016.

The securities referred to in this news release have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any applicable securities laws of any state of the United States, and may not be offered or sold within the United States unless registered under the U.S. Securities Act and any other applicable securities laws of the United States or an exemption from such registration requirements is available. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of these securities within any jurisdiction, including the United States.

In connection with the Offering, the Agents will be entitled to receive a 5% commission on the gross proceeds of the sale of the Subscription Receipts payable upon the closing of the Acquisition (other than Cdn$291,111 already paid on closing of the Offering in respect of retail selling concessions and selling dealer group member sales).  Upon closing of the Acquisition, the Company will also issue to the Agents broker warrants exercisable for 11,162,362 Common Shares at an exercise price of Cdn$0.22 per Common Share for a term ending 24 months from the closing of the Acquisition. The Agents’ Warrants and underlying Common Shares will be subject to a four-month hold period under Canadian securities laws from date of issue.

The Offering and related transactions are subject to the final approval of the TSX Venture Exchange.

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 relating to the timing and completion of the Acquisition Agreement and the Credit Facility, conversion of the Subscription Receipts and future plans and objectives of the Company, future events and conditions and other statements that are not historical facts, all of 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 failure of the Company to satisfy the conditions of the Acquisition Agreement, the Credit Facility or the conversion of the Subscription Receipts 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.  As a result, the Company cannot guarantee that the Acquisition Agreement, the Credit Facility, the conversion of the Subscription Receipts and related transactions will be completed on the terms and within the time disclosed herein or at all.

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.

June 16th, 2016|

Rye Patch Announces Cdn$40 Million Private Placement of Subscription Receipts to fund Florida Canyon Gold Mine Acquisition

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR
FOR DISSEMINATION IN THE UNITED STATES

Vancouver, British Columbia, June 2, 2016 – Rye Patch Gold Corp. (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) (the “Company” or “Rye Patch”) is pleased to announce that, further to the previously announced engagement of Macquarie Capital Markets Canada Ltd. and Canaccord Genuity Corp. (the “Lead Agents”) with respect to a proposed equity financing, a syndicate of agents (the “Agents”), co-led by the Lead Agents, and including Dundee Securities Ltd. and GMP Securities L.P., will act as agents in connection with a best efforts brokered private placement of 182,000,000 subscription receipts of the Company (the “Subscription Receipts”) at a price of Cdn$0.22 per Subscription Receipt for gross proceeds of Cdn$40,040,000 (the “Offering”).

The Company has also granted the Agents an option (the “Agents’ Option”), exercisable in whole or in part at any time prior to the closing of the Offering, to sell as agent an additional 45,500,000 Subscription Receipts at Cdn$0.22 per Subscription Receipt for total additional aggregate gross proceeds of up to Cdn$10,010,000 on the same terms and conditions as the Offering.  Potential aggregate gross proceeds from the sale of Subscription Receipts under the Offering and the Agents’ Option (collectively, the “Offering”) would be Cdn$50,050,000.

The net proceeds from the Offering will be used to finance, in part, the purchase price under the Company’s agreement (the “Acquisition Agreement”) to acquire 100% ownership of the Florida Canyon gold mine (with the Standard gold mine) located in Pershing County, Nevada and related assets (the “Acquisition”) announced in its news release of May 25, 2016, as well as certain working capital and corporate requirements needed to redevelop and expand the Florida Canyon gold mine. Closing of the Acquisition is anticipated to occur on or before July 31, 2016, subject to regulatory approvals and satisfying conditions of closing under the Acquisition Agreement.  Conditions in the Company’s favour include completion of a credit facility for not less than US$25 million (the Company has a previously announced commitment letter for a US$27 million credit facility from Macquarie Bank Limited (the “Credit Facility”)) and completion of an equity financing of not less than US$30 million (which completion of the Offering will satisfy).

Each Subscription Receipt will entitle the holder to receive one common share of Rye Patch (a “Common Share”), without additional payment or further action on the part of the holder, when all conditions precedent to the completion of the Acquisition, the Credit Facility, and the Offering are satisfied or waived by the applicable parties.  The gross proceeds from the Offering will be held in escrow pending satisfaction or waiver of these conditions precedent. If the conversion of the Subscription Receipts does not occur before 5 p.m. (Vancouver time) on August 31, 2016 (except as extended with the consent of the Lead Agents) or if the Acquisition Agreement is terminated at any earlier time, the holders of the Subscription Receipts will be entitled to a return of their full subscription price and their pro rata entitlement to the interest earned on the escrowed funds.

The Subscription Receipts will be offered on a private placement basis in all provinces of Canada and elsewhere pursuant to available prospectus exemptions under applicable securities laws. The Subscription Receipts and the underlying Common Shares will be subject to a customary four‑month hold period under Canadian securities laws.

The securities referred to in this news release have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any applicable securities laws of any state of the United States, and may not be offered or sold within the United States unless registered under the U.S. Securities Act and any other applicable securities laws of the United States or an exemption from such registration requirements is available. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of these securities within any jurisdiction, including the United States.

In connection with the Offering, the Agents will be entitled to receive a 5% commission on the gross proceeds of the sale of the Subscription Receipts payable upon the closing of the Acquisition (other than certain amounts payable on retail selling concessions and selling dealer group member sales to be paid on closing of the Offering).  In addition, upon closing of the Acquisition, the Company has agreed to issue the Agents broker warrants entitling them to acquire that number of Subscription Receipts equal to 5% of the Subscription Receipts sold pursuant to the Offering on the same terms and conditions as the Subscription Receipts at an exercise price of Cdn$0.22 per Subscription Receipt for 24 months following closing of the Acquisition.

The Offering and related transactions are subject to the approval of the TSX Venture Exchange.

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 relating to the timing and completion of the Offering, the Acquisition Agreement, the Credit Facility and future plans and objectives of the Company, future events and conditions and other statements that are not historical facts, all of 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 failure of the Company to satisfy the conditions of the Offering or in the Acquisition Agreement or the Credit Facility 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.  As a result, the Company cannot guarantee that the Offering, the Acquisition Agreement and the Credit Facility and related transactions will be completed on the terms and within the time disclosed herein or at all.

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.

June 2nd, 2016|

Rye Patch Signs Agreement to Acquire Florida Canyon Gold Mine and Commitment Letter for a US$27 Million Credit Facility for Mine Restart

Vancouver, British Columbia, May 25, 2016 – Rye Patch Gold Corp. (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) (the “Company” or “Rye Patch”) is pleased to announce that it has signed a definitive agreement (the “Acquisition Agreement”) to acquire 100% ownership of the Florida Canyon gold mine (with the Standard gold mine) located in Pershing County, Nevada, for total consideration of US$15 million in cash and 20,000,000 common shares of the Company payable at closing, subject to adjustment for outstanding liabilities, plus certain contingent payments . The Company has also signed a commitment letter for a US$27 million credit facility (the “Credit Facility”) with Macquarie Bank Limited (“Macquarie Bank”) to fund the proposed redevelopment of the Florida Canyon mine.  The Company has engaged Macquarie Capital Markets Canada Ltd. (‘Macquarie Capital”) and Canaccord Genuity Corp. (“Canaccord Genuity”) with regard to a proposed equity financing to fund the cash portion of the purchase consideration.

Florida Canyon Mine and Proposed Restart

The Florida Canyon gold mine is fully permitted, has been in continuous production since 1986 and is currently producing gold from its existing leach pad facilities.  The Company proposes to redevelop the mine, including constructing a new heap leach pad and waste storage facility as well as mining a planned expansion of the Florida Canyon ore body.  Rye Patch expects Florida Canyon to achieve commercial production from the new leach pad in Q1 2017.

Mine Development Associates (“MDA”) completed a Preliminary Economic Assessment for the Company with an effective date of March 16, 2016, (the “PEA”) for the Florida Canyon gold mine. The PEA was completed based on a US$1,000 per ounce gold price for the first two years and a US$1,150 per ounce gold price for the remaining life of mine and will be filed on SEDAR within 45 days of the date of this news release.

PEA and Acquisition Highlights:

  • Average production of approximately 75,000 ounces of gold per year for 8 years;
  • US$1,000 per ounce of Au for years 1 to 2 and US$1,150 per ounce of Au used for years 3 to 8;
  • Pre-tax NPV (7.5%) of US$65.43 million, with a 41.5% IRR;
  • Cash cost per gold ounce is calculated at US$759 per ounce;
  • Fully permitted expansion;
  • Commitment letter executed for a US$27 million Credit Facility;
  • Significant potential synergies with existing Oreana Trend assets; and
  • Tremendous exploration and further development potential.
Table 1: PEA Gold Price Sensitivity Analysis (AFTER TAX)
% of Base Case NPV7.5%
(US$mm)
IRR 
(%)
Gold Price
Yr 1 & 2
US$/oz Au
Gold Price
Yrs 3 – 8
US$/oz Au
100% $45.845 34.4% $1,000 $1,150
110% $80.194 53.8% $1,100 $1,265
120% $114.543 73.4% $1,200 $1,380

See “Preliminary Economic Assessment on Florida Canyon Mine” below for further details on the PEA and, specifically, the cautionary language regarding the preliminary nature of the PEA in that it is based on Inferred Mineral Resources and not mineral reserves. The Company’s decision to place the Florida Canyon mine into production is not based on a feasibility study of mineral reserves demonstrating economic and technical viability, and the Company cautions that historically such projects have a much higher risk of economic or technical failure.

All mining and ancillary equipment required to operate the Florida Canyon mine is in place together with a team of high quality experts experienced in mining a low‑cost operation with a successful 30‑year history.

Following the restart of Florida Canyon, Rye Patch will have cash flow from both a producing mine and from its existing NSR royalty along with a pipeline of nearby, advanced-stage projects to ensure future growth. Significant operational synergies exist with Florida Canyon and the nearby Lincoln Hill and Wilco resource projects.  Oxide resources at Lincoln Hill and Wilco represent additional volume that would contribute to increasing future gold output.

William Howald, the company’s President and CEO, commented, “This is truly a unique and transformational opportunity that has fantastic synergies with our existing projects at Lincoln Hill, Gold Ridge and Wilco located 30 kilometres to the south.  We are creating a new and exciting company with anticipated initial annual production of 75,000 ounces gold expected to begin in 2017 with the potential to expand the existing Measured and Indicated Resource of 1.1 million ounces.  Florida Canyon provides Rye Patch with a solid foundation from which to grow and significant exploration upside in and around the mine and throughout the district.”

Mr. Howald concluded by saying, “This acquisition represents a tremendous opportunity for both existing and new Rye Patch shareholders to realize significant value.”

Macquarie Bank Credit Facility

To partially fund the proposed redevelopment of the Florida Canyon gold mine, the Company has executed a commitment letter with Macquarie Bank for a US$27 million Credit Facility for the Company’s wholly owned US subsidiary, Rye Patch Mining U.S. Inc. (“Rye Patch U.S.”). The Credit Facility will bear interest at LIBOR plus 8% per annum and includes a hedging facility. Repayment of the Credit Facility will be amortized over the first four years of production following the restart of the Florida Canyon mine, subject to prepayment from a percentage of excess free cash flow from the mine, with the final repayment date expected to be no later than December 31, 2020.

In connection with the Credit Facility, Rye Patch is to issue Macquarie Bank warrants with a five year term for the purchase of such number of common shares of Rye Patch that is equivalent to conversion of 10% of the Credit Facility amount at an exercise price equal to the lesser of (a) a premium of 25% to the volume weighted average price of the shares traded on the TSX Venture Exchange (“TSX‑V”) for the 20 days preceding the issue date of the warrants, and (b) the most recent price of which shares of Rye Patch were issued. The Credit Facility is subject to customary fees and covenants.

Rye Patch U.S.’s obligations under the Credit Facility will be guaranteed by the Company and certain material subsidiaries. In addition, Macquarie Bank will be taking a first ranking security interest over all of the properties and assets of the Company and its material subsidiaries, including the Florida Canyon mine property and assets as well as shares of the subsidiary companies that hold the property and assets.

Acquisition Agreement

The acquisition of the Florida Canyon mine is being made pursuant to the Acquisition Agreement dated May 24, 2016, among the Company and Rye Patch U.S., and Jipangu International Inc. (“JII”), Imlay Mining Co., Ltd. (“Imlay”) and ADM‑Gold Co., Ltd. (“ADM Gold”), whereby Rye Patch U.S. will acquire all of the outstanding shares of the companies which own the Florida Canyon mine and related assets (including the nearby Standard gold mine). The Acquisition Agreement includes the following provisions:

  • Consideration payable under the Acquisition Agreement to ADM‑Gold and/or affiliated entities on closing is comprised of US$15 million payable in cash and issuance of 20,000,000 common shares of Rye Patch, provided that approximately US$6.55 million of the cash consideration will be held in escrow pending the determination of outstanding tax and other liabilities.
  • Within 60 days of commencement of commercial production at the Florida Canyon mine by Rye Patch U.S. as operator:
    • Rye Patch U.S. is to pay additional consideration to ADM‑Gold of US$5 million in cash (the “Cash Contingent Consideration”), subject to adjustment depending on the amount of outstanding liabilities to third parties that have not then been settled or waived and postponement in certain circumstances, and
    • Rye Patch is to issue to ADM‑Gold warrants exercisable for 15,000,000 common shares of Rye Patch at US$0.50 per share for a two‑year term from date of issuance.
    • The Cash Contingent Consideration payable to ADM‑Gold may be alternatively satisfied by the issuance of:
      • US$2.5 million worth of common shares of Rye Patch at a price per share equal to the greater of U.S.$0.20 and the volume weighted average trading price of the shares for the 20 trading days prior to the commencement of commercial production, and
      • An unsecured debt obligation for US$2.5 million (subject to adjustment for outstanding liabilities) maturing five years after commencement of commercial production, subject to mandatory prepayment from certain levels of uncommitted free cash flow from the mine, and bearing 4% interest per annum in the first year and 9% interest per annum thereafter with interest to be paid quarterly in cash.  Should this debt obligation not be fully paid when due, ADM‑Gold may elect to convert the amount owing into common shares of Rye Patch at a price per share equal to the greater of U.S.$0.20 and the volume weighted average trading price of the shares for the 20 trading days prior to ADM‑Gold’s conversion notice.
  • The contingent consideration will be subject to intercreditor agreements between ADM‑Gold and Macquarie Bank, including ADM‑Gold having a second priority security interest (to the extent of US$2.5 million) over the same property and assets that will be subject to Macquarie Bank’s first ranking security interest.
  • Closing of the acquisition is anticipated to occur on or before July 31, 2016, subject to regulatory approvals and satisfying conditions of closing under the Acquisition Agreement.  Conditions in the Company’s favour include completion of the Credit Facility for not less than US$25 million and completion of an equity financing of not less than US$30 million which the Company is currently negotiating.

Florida Canyon Mine Location and Background

The Florida Canyon mine is located half way between Lovelock and Winnemucca, Nevada, and approximately 30 kilometres north of the Company’s Wilco, Lincoln Hill and Gold Ridge projects. The mine sits immediately adjacent to Interstate 80 and is located approximately 210 kilometres northeast of Reno, Nevada.

Currently, the mine is producing from its existing leach pad facilities.  The Company proposes to construct a new heap leach pad and waste storage facility to complete a planned layback of the existing pit area.  Initial production from the new leach pad is expected within six months and commercial production growing toward 75,000 ounce of gold per annum is expected three months later.  The expansion is fully permitted, and the Credit Facility from Macquarie Bank will be used for the build out.

Rye Patch expects to have cash flow from a producing mine and from its existing NSR royalty along with a pipeline of advanced-projects to ensure future growth. Significant operational synergies exist with Florida Canyon and the nearby Lincoln Hill and Wilco resource projects.  Oxide resources at Lincoln Hill and Wilco represent additional volume that could contribute to increasing future gold output. The infrastructure at Florida Canyon is capable of reducing capital and costs for the Lincoln Hill and Wilco projects by utilizing the existing assay lab, carbon stripping plant, refinery, and management, thereby potentially reducing the timeline to production for these assets.

Preliminary Economic Assessment on Florida Canyon Mine

Table 2 summarizes the base case production and financial parameters used in the PEA.

Table 2: Summary of Base Case Assumptions
Gold Price (US$) $1,000 (yrs 1&2)
$1,150 (yr 3 to 8)
Average Annual Gold Production (ounces) 75,000
Pre-Production Capital Costs (US$) $25.2 million
LOM Sustaining Capital (US$) $23.9 million
Strip Ratio 1.47:1
Pre-Production Period (years) 0.5
Mine Life (years) 8
Cash Cost per Gold Ounce (US$) $759

PRE-TAX

Life of Mine NPV at 7.5% Discount Rate (US$) $65.4 million
Internal Rate of Return 41.5%

AFTER-TAX

Life of Mine NPV at 7.5% Discount Rate (US$) $45.8 million
Internal Rate of Return 34.4%

The Company cautions that the PEA is preliminary in nature in that it is based on Inferred Mineral Resources which are considered too speculative geologically to have the economic considerations applied to them that would enable them to be characterized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

The Company’s decision to place the Florida Canyon mine into production is not based on a feasibility study of mineral reserves demonstrating economic and technical viability, and the Company cautions that historically such projects have a much higher risk of economic or technical failure.

PEA Overview

MDA prepared the PEA as an open-pit mining project based solely on the Measured and Indicated Resources reported in the March 16, 2016, PEA. Caterpillar 992 and 993 wheel loaders and 785 haul trucks will be used to mine the ore body.  Material would then be transported and processed through a two-stage crusher and crushed to -38 mm (-1.5 inches).  The ore will be placed on the newly constructed South Heap Leach Pad Facility (“SHLP”) using 777 Caterpillar haul trucks.  Metal would be recovered onsite and sold as gold-silver dorė.  All necessary mine infrastructure and equipment is on the mine site.

The average annual production is expected to be 7.2-million tons (6.5-million tonnes) at a contained gold grade of 0.013 ounces per ton (0.445 grams per tonne).  Based on gold recovery, it is anticipated that the mine will produce and sell an average of approximately 75,000 ounces of gold annually for an eight-year period.

Certain metric references in this news release have been converted from imperial amounts indicated in the PEA.

Mineral Resources

In March 2016, MDA completed a National Instrument 43-101-compliant PEA report for the Florida Canyon mine titled “Technical Report – Preliminary Economic Assessment for the Florida Canyon Mine, Pershing County, Nevada USA.  In their analysis, MDA reported mineral resources at a cut-off grade of 0.006 oz Au/ton (0.2 grams of gold/tonne) for oxide material and 0.034 oz Au/ton (1.16 grams of gold/tonne) for sulfide material (Tables 3.1 and 3.2).  Sulfide resources were restricted to an Inferred only classification.  These reported resources, in the form of the resource block model, were used as the basis for determining mineable gold in the PEA.

Table 3.1: Florida Canyon March 16, 2016 Measured and Indicated Oxide Resources
(0.006 oz Au/ton cutoff grade)

Item Tons
X (000’s)
oz
Au/t
Ounces Au
X (000’s)
Measured
Indicated
79,635.4
4,566.7
0.013
0.02
1,035.3
91.3
Measured + Indicated 84,202.1 0.013 1,126.6

Table 3.2: Florida Canyon March 16, 2016 Inferred Resources
(0.006 oz Au/ton oxide and 0.034 oz Au/ton sulfide cutoff grades

Item Inferred
Tons
X (000’s)
oz
Au/t
Ounces Au
X (000’s)
Oxide
Sulfide
350.8
7,115.0
0.015
0.055
5.3
391.1
Total Inferred Resource 7,465.8 0.050 396.4

The current resources at Florida Canyon are based on a grade block model produced by Reserva International LLC (“Reserva”) in 2009. The oxide and sulphide resources were re-calculated in 2012 using a change in resource cut-off grade and an updated topographic surface.  The current Measured, Indicated, and Inferred oxide resources were recalculated for this report based on an updated December, 2014 topographic surface and a $1200 gold price, and are restricted to that material above the 0.006oz Au/ton cut-off grade that occurs inside an optimized pit using the PEA estimated costs and process recoveries.

Florida Canyon drillhole spacing is generally 100ft x 100ft (30m x 30m) or less, and the gold domains are based on 20ft (9.1m) drill hole composites generated from capped sample interval gold assay values. The polygons were drawn enclosing two or more pierce points of the grade being modeled in a manner consistent with the orientation of mineralized bodies at Florida Canyon based on experience. These polygons were assigned a rock code based on the grade and location (Main or RTE) and validated for preparation of a block model.

The bench interpretations were used to code the drill composites and model blocks to each particular domain using the 50% majority-rule. The full block model has been re-interpolated using the new gold domain definitions, the complete drillhole data set through February 2009, and revised variography. A three-dimensional block model was built using Gemcom software by Mr. Tim Carew, P. Geo., principal of Reserva International LLC.  The 2009 block model contains 333 columns, 261 rows, and 135 levels; the model block size is 30ft x 30ft x 20ft (9.1m x 9.1m x 6.1m) vertically.

The Measured oxide resource for Florida Canyon is classified as those model blocks defined by at least five composites within one-half the distance of the variogram range, and use a maximum of two composites per drillhole. This implies a minimum of three drillholes is also required.

The Indicated oxide resource for Florida Canyon is classified as those model blocks defined by at least three composites within the full distance of the variogram range, and use a maximum of two composites per drillhole. This implies a minimum of two drill holes is also required.

MDA did not audit the sulfide model as it is not part of the current mining plan. Some material modeled as sulfides were included in the optimized pit, but were treated as waste in the mine schedule.

Mineral resources are not mineral reserves and do not have demonstrated economic viability.

Mine Planning

A PEA provides a basis to estimate project operating and capital costs and establish a projection of the potential mineable resource including measured, indicated and inferred categories as permitted under National Instrument 43-101. A Whittle pit optimization was performed using estimates of operating costs typical of operating surface mines using heap leach processing in northern Nevada and using metallurgical recovery based on 30 years of recovery history and column leach test work performed on material from the Florida Canyon mine. The ultimate pit shell was determined using a gold price of US$1,150 per ounce and only the Measured and Indicated oxide resources shown above in Table 3.1 were used for production scheduling.

No inferred material was used in the financial modeling.  The strip ratio for the economic pit is 1.47 tons of waste for every one ton of ore.

Metallurgy

The Florida Canyon mine has been in continuous operation since 1986, and a total of 2.2875Mozs of gold have been produced from the operation.  For the 30-year period, gold recoveries have reached an average of 68.3% on a combination of crushed and run-of-mine (“ROM”) material (recovery of 50% for ROM and 71% for crush).  The Company’s PEA contemplates placing only crushed material on the new heap leach pad, thereby increasing the average recovery from 68% to 71.1%.  Approximately 63.8 million tons (57.9 million tonnes) of new ore will be sent to the new SHLP, and 93.7 million tons (85 million tonnes) of waste will be stored in the new South Waste Rock Storage Facility.  The ore material will be placed on the SHLP at a rate of 7.2 million tons (6.5 million tonnes) per annum and will be the basis for recovering metals from the Property.  The crushed material gold recovery is expected at 71.1% of total placed. Recovery is expected over 30 to 45 day period, on a declining curve, from the date placed on the pad.

Capital Costs

Each capital item has an associated quote or bid to substantiate the cost.  The capital required to build the expansion includes US$5.834M for mining equipment and deferred maintenance, US$2.735M for a crusher move and upgrade, US$7.208M for new leach pad, pond and piping construction, US$3.781M for contingency and US$0.9M for miscellaneous.  The total capital requirement is US$28.985 million including contingency.

Operating Costs

Operating cost assumptions were based on similar scale surface mining operations using heap leach processing in northern Nevada, and process cost estimates for key consumables are based on the available metallurgical test data, power consumption data and prevailing costs for key materials in similar Nevada mining operations. Operating cost per ton of material processed are summarized as follows:

Table 4:  PEA Pit Optimization Parameters

Item Item Value
(dollar amounts in US$)
Mining Cost   Rock $1.35 to $1.65 per ton depending on location
Mining Cost   Fill $1.35 per ton
Processing Cost Crushing and Pad Placement $1.10 per ton processed
Processing Cost Leaching $2.60 per ton processed
Processing Cost G & A Cost $0.50 per ton processed
Process Recovery 68%
Minimum Grade 0.006 ounce per ton
Gold Price $1150 per ounce of gold
Royalty 5.75%
Selling Cost $5.00 per ounce sold
Interamp Pit Slope Rock 45 degrees
Interamp Pit Slope Fill 37 degrees

Economic Analysis

MDA chose US$1,000 per ounce for gold in years one and two, and US$1,150 per ounce for gold for years 3 through 8 as the base case economic scenario. The base case pre-tax economic results for the metal price assumptions are as follows:

Table 5: Pre Tax Projected Economic Results

Base Case
(dollar amounts in US$)
Gold Price $1,000 (yrs 1&2); $1,150 (yr 3 to LOM)
Net Cash Flow $117.2 million
NPV @ 5% Discount Rate $79.3 million
Internal Rate of Return 41.5%
Operating Costs per Ounce of Gold Produced (Life-of-Mine) $759

Infrastructure

Everything needed for a mine is on the mine site.  The Florida Canyon mine is adjacent to a major transportation and services corridor. The mine is within one mile of Interstate 80, the Union Pacific Railroad, and NV Energy transmission lines. All requirements for energy, water and process materials are available, and services are established. Nevada has a large, well-established gold mining industry. Services, supplies, manpower, housing, equipment and venders are readily available within the state.
The existing waste rock storage facilities are in the process of closure and have been reclaimed, and the existing leach pad is at capacity

A new 300 acre (121.4 hectare) heap leach facility (SHLP) is fully permitted.  The SHLP is divided into three cells each covering 100 acres (40.5 hectares).  The first cell will be constructed with initial production anticipated in late 2016.  The pad location and attendant facilities are fully permitted.

The process facilities consist of five sets of carbon in columns with a maximum capacity of 9,000 gpm. An ARD plant, carbon acid wash, an elution and stripping circuit, electrowinning and refinery circuit, carbon handling and regeneration circuit and an assay lab with a metallurgical lab are on site.  The facility has the capacity to produce over 180,000 ounces of gold per year.

A crusher and an agglomeration and conveyor plant are presently located at the Standard Mine. The crusher and associated facilities will be moved and upgraded. The crusher capacity will be increased from 5.0M tons (4.5M tonnes) per annum to 7.2M tons (6.5M tonnes) per annum. A new lime silo for lime storage and dosing ore will be constructed.

Ancillary facilities include a maintenance shop with offices. The maintenance shop has two bays with room to work on four Cat 785 haul trucks within the bays. An administration building includes offices, meeting rooms, and a training room. There is an assay laboratory with a metallurgical lab, a technical services office for the geological staff, a security office and guard shack, and lay down yards.

National Instrument 43-101 Disclosure

The Florida Canyon mine PEA was prepared by Mine Development Associates under the direction of Neil B. Prenn, PE, and incorporates the work of a number of industry-leading consultants, all of which are Qualified Persons (as defined under National Instrument 43-101) and are independent of Rye Patch.  Neil B. Prenn has reviewed and approved this press release.

Regulatory Approvals

The Acquisition Agreement, Credit Facility, and the transactions contemplated therein are subject to applicable regulatory approvals, including TSX‑V approval.

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 relating to the timing and completion of the Acquisition Agreement, the Credit Facility and an equity financing, future plans and objectives of the Company, proposed operations of the Company including mine development, future events and conditions and other statements that are not historical facts, all of 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 failure of the Company to satisfy the conditions in the Acquisition Agreement or the Credit Facility including mine redevelopment plans and production results to complete the contemplated transactions; the availability of funds; the financial position of Rye Patch; the timing and content of work programs; the results of exploration activities and development of mineral properties; the interpretation of drilling results and other geological data; the reliability of calculation of mineral resources; the reliability of calculation of precious metal recoveries; the 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.  As a result, the Company cannot guarantee that the Acquisition Agreement, the Credit Facility and an equity financing and related transactions will be completed on the terms and within the time disclosed herein or at all.

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.

May 25th, 2016|

Rye Patch Gold Announces Phase-2 Metallurgical Results

Vancouver, British ColumbiaMarch 9, 2016 – Rye Patch Gold Corp (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) (the “Company” or “Rye Patch”) announces initial results from McClelland Laboratories in Reno, Nevada for the Phase-2, feasibility-level metallurgical test program for Rye Patch’s 100% owned Lincoln Hill Project in Pershing County, Nevada.  Final results have been received for the 18 bottle-roll tests. Specific gravity, work index, and abrasion studies were also completed.  Acid Based Accounting (ABA) studies are in progress.   Column tests are in progress with results pending.

HIGHLIGHTS

  • A total of 6 composites at three different feed sizes were analyzed, and results indicate that gold and silver recoveries are size dependent;
  • The results suggest that Rochester-like gold and silver recoveries are achievable with a crushing circuit.
  • Gold recoveries for the larger sized material can be improved through increased leach time; and
  • Additional work, Phase-3, will be completed to identify the optimum heap leach feed size.

Bottle-roll leach tests were completed on six composites at three different feed sizes. The bottle-roll testing was designed to evaluate gold and silver recoveries at the different feed sizes, and review similarities in rock properties with the adjacent Rochester mine.  The results indicate that recovery is not rock type dependent but show a marked improvement with smaller feed size. The work also suggests higher recoveries could also be achieved from longer leach cycles for the larger feed sizes.  The composites were compiled from six, PQ-size core holes totaling 920 metres (3,337ft.).  Table 1 lists the drillhole interval used in the composites.

Table 1: Drillhole Intervals for Phase-2 Metallurgical Composites

Composite Description Number of Drill Holes Drillhole ID
Comp 1 Low Grade Un-oxidized Silicified 5 LHC-010, LHC-011, LHC-012, LHC-013, LHC-014A
Comp 2 Low Grade Oxidized Silicified 6 LHC-010, LHC-011, LHC-012, LHC-013, LHC-014, LHC-014A
Comp 3 High Grade Un-oxidized Silicified 5 LHC-010, LHC-011, LHC-012, LHC-013, LHC-014A
Comp 4 High Grade Oxidized Silicified 5 LHC-010, LHC-011, LHC-012, LHC-013, LHC-014A
Comp 5 Low Grade Oxidized Mixed 5 LHC-010, LHC-011, LHC-012, LHC-013, LHC-014
Comp 6 High Grade Gold, High Grade Silver Mixed 6 LHC-010, LHC-011, LHC-012, LHC-013, LHC-014, LHC-014A

Figure 1 illustrates the relationship between particle size and gold recovery.  The graph conclusively shows an increase in gold recovery with smaller particle size.  The next round of testing will determine the optimal size for crush material as well as leach cycle time.  However, the gold liberation from smaller feed sizes suggests the Lincoln Hill material behaves similar to the adjacent Rochester mine.

Figure 1: Gold Recovery versus Feed Size

The gold recoveries show a positive trend with smaller feed size.  The bottle roll results varied from 94.1% to 82.4% for 75µm feed size, and from 57.1% to 29.4% passing for the 50mm size.

Silver recoveries showed the same increase in recovery with smaller feed size and varied from 90.9% to 76.7% for 75µm to 39.2% to 13.5% for the 50mm size fraction.  Recoveries can be improved for the larger sized material by increasing the leach time and cyanide concentration for silver.

Figure 2 illustrates the relationship between particle size and silver recovery.  Additional metallurgical tests are investigating cyanide concentration and optimum feed size for silver recovery; however, the graph shows a significant inflection point where better recoveries can be achieved for feed sizes below 9.5mm.  The data indicate that silver liberation from smaller feed sizes on Lincoln Hill material behaves similar to the adjacent Rochester mine.

Figure 2: Silver Recovery versus Feed Size

Table 2 shows the gold and silver recovery results for the 18 bottle-roll tests, oxidation and alteration characteristics, and gold grade class.  The low-grade classification is between 0.1 gm/T Au and 0.7 gm/T Au.  High-grade classification is greater than 0.7 gm/T Au.

Table 2: 96-Hour Bottle Roll Test Results

Composite Ore type Feed size Au Recovery % Ag Recovery % NaCN Consumption    kg/mt Lime Addition kg/mt
Comp 1 Low Grade Un-oxidized Silicified 100%-50mm 29.4% 20.5% 0.15 0.6
Comp 1 Low Grade Un-oxidized Silicified 80%-9.5mm 53.3% 41.2% 0.09 1.0
Comp 1 Low Grade Un-oxidized Silicified 80%-75µm 82.4% 78.3% 0.17 1.5
Comp 2 Low Grade Oxidized Silicified 100%-50mm 57.1% 13.5% <0.07 0.6
Comp 2 Low Grade Oxidized Silicified 80%-9.5mm 60.0% 33.3% 0.07 0.9
Comp 2 Low Grade Oxidized Silicified 80%-75µm 84.2% 85.5% 0.08 1.4
Comp 3 High Grade Un-oxidized Silicified 100%-50mm 40.5% 39.2% 0.15 0.7
Comp 3 High Grade Un-oxidized Silicified 80%-9.5mm 53.1% 52.1% 0.08 1.0
Comp 3 High Grade Un-oxidized Silicified 80%-75µm 87.8% 81.8% 0.20 1.3
Comp 4 High Grade Oxidized Silicified 100%-50mm 44.9% 14.7% <0.07 0.7
Comp 4 High Grade Oxidized Silicified 80%-9.5mm 80.8% 36.4% 0.07 1.2
Comp 4 High Grade Oxidized Silicified 80%-75µm 93.8% 85.8% 0.08 1.3
Comp 5 Low Grade Mixed 100%-50mm 47.1% 23.7% 0.08 0.7
Comp 5 Low Grade Mixed 80%-9.5mm 66.7% 45.3% 0.12 1.2
Comp 5 Low Grade Mixed 80%-75µm 86.7% 90.9% 0.19 1.04
Comp 6 High Grade, High Grade Silver, Mixed 100%-50mm 35.1% 20.9% 0.08 0.6
Comp 6 High Grade, High Grade Silver, Mixed 80%-9.5mm 37.9% 33.7% 0.08 1.1
Comp 6 High Grade, High Grade Silver. Mixed 80%-75µm 94.1% 76.7% 0.29 1.5

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 reviewed and approved the contents of this news release.

About Rye Patch Gold Corp. 

Rye Patch Gold Corp. is a Tier 1, well-funded junior mining company led by a seasoned management team that has participated in major discoveries totaling over 100-million ounces of gold.  The team is engaged in the acquisition, exploration and development of quality resource-based gold and silver projects along the emerging Oreana trend and the prolific Cortez trend.  Benefitting from its strong financial position, the Company’s strategy is to balance development and exploration risk, creating value by:

  • Advancing the Lincoln Hill project toward production;
  • Pursuing a world class discovery – Garden Gate and Patty – contiguous to and on strike with Barrick’s Goldrush deposit; and
  • Seeking new project opportunities and accretive transactions.

The Company’s cash and cash flowing royalty allow for progress without dilution to shareholders. For more information about the Company, 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 financial position of Rye Patch; the timing and content of work programs; the results of exploration activities and development of mineral properties; the interpretation of drilling results and other geological data; the reliability of calculation of mineral resources (and, in respect of the Coeur Rochester mine 3.4% NSR, the reliability of calculation of Coeur’s mineral resources and reserves); the reliability of calculation of precious metal recoveries; the 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.

March 9th, 2016|

Rye Patch banks $1.4 Million from fourth quarter royalty payment

Vancouver, British Columbia, January 28, 2016 – Rye Patch Gold Corp (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) announces that it has received its fourth quarterly royalty payment for 2015 of CDN $1,405,000 (USD $965,500) from its Net Smelter Return royalty on the Rochester mine located along the Oreana trend in Pershing County, Nevada.

The total of the royalty payments received for 2015, is approximately CDN $6,208,000 (CDN $4,137,000 received in 2014).
William C. Howald, the Company’s President and CEO commented that, “The royalty income remains a welcome source of non-dilutive funding during this turbulent and devalued market and keeps the company on secure financial footing.”

About Rye Patch Gold Corp. 
Rye Patch Gold Corp. is a Tier 1, well-funded junior mining company led by a seasoned management team that has participated in major discoveries totaling over 100-million ounces of gold.  The team is engaged in the acquisition, exploration and development of quality resource-based gold and silver projects along the emerging Oreana trend and the prolific Cortez trend.  Benefitting from its strong financial position, the Company’s strategy is to balance development and exploration risk, creating value by:

  • Advancing the Lincoln Hill project toward production;
  • Pursuing a world class discovery – Garden Gate and Patty – contiguous to and on strike with Barrick’s Goldrush deposit; and
  • Seeking new project opportunities and accretive transactions.

The Company’s cash and cash flowing royalty allow for progress without dilution to shareholders. For more information about the Company, 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 financial position of Rye Patch; the timing and content of work programs; the results of exploration activities and development of mineral properties; the interpretation of drilling results and other geological data; the reliability of calculation of mineral resources (and, in respect of the Coeur Rochester mine 3.4% NSR, the reliability of calculation of Coeur’s mineral resources and reserves); the reliability of calculation of precious metal recoveries; the 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.

January 28th, 2016|

Rye Patch Stakes claims along Gold Ridge-Florida Canyon trend

Vancouver, British ColumbiaJanuary 14, 2016 – Rye Patch Gold Corp (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) (the “Company” or “Rye Patch”) is pleased to announced that the Company’s wholly owned subsidiary, Rye Patch Gold US Inc., has staked 119 unpatented lode claims covering the historic Rye Patch mine located 13 kilometres north of Gold Ridge and 6 kilometres south of Florida Canyon’s Standard Gold mine operation along a major north-south structural zone in Pershing County, Nevada.  The new project is called Panther Canyon.

Based on the Gold Ridge drill program (see news release January 6, 2016), Rye Patch has secured mineral tenure over approximately 10 square kilometres (2,400 acres) along a major north-south fold and thrust belt that is present between Gold Ridge and the Florida Canyon mine.   The claims cover the historic Rye Patch mine.

Discovered in 1860, the Nevada Bureau of Mines and Geology reported the historic Rye Patch mine produced 600,000 ounces of silver between 1860 and 1870.  Historic sample results yielded silver values up to 4,350 g/t Ag and gold values of 3.44 g/t Au.

On the new claims, the mineralized gold-silver zone has been traced in outcrop and occupies a north-south trending structural corridor that extends for 2.7 kilometres in length and 120 to 300 metres (400 to 1,000 feet) in width along a major thrust fault similar and potentially associated to the mineralized zone identified at the Gold Ridge project. Mineralization on the south end of the new claims is silver dominated and progressively becomes enriched in gold from the south to the north where historic surface grab samples range from 1.25 to 3.44 g/t (0.04 to 0.11 opt) gold within the mineralized zone.  The gold and silver zonation is probably related to the Rocky Canyon intrusive complex located immediately to the south.  A swarm of intrusive dikes and sills is focused proximal to the general thrust zone as at the nearby Florida Canyon and Standard Mines.

William Howald, President and CEO commented, “The gold and silver mineral trend and associated structural features is sizeable with over 25 kilometres of strike.  At the north end of the zone is the Florida Canyon mine; at the south is our 100% owned Gold Ridge project, and in the middle are the new Panther Canyon claims.  The tremendous size of the trend suggests it could host multiple, significant gold and silver deposits, and Rye Patch is seizing the opportunity as one of the few remaining groups still exploring in Nevada.  Staking the additional land and acquiring the large upside potential along what appears to be a major precious metal trend positions Rye Patch for more discoveries in west-central Nevada.”

Rye Patch has completed initial mapping and a surface rock-chip sampling program.  The results of this work support the historic literature and confirm the property contains a significant precious-metals bearing system.  More detailed work is required to define and refine drill targets.  A detailed mapping and exploration program will be budgeted and will commence in the spring of 2016.

Extensive mine workings exist near the southern portion of the property in the vicinity of the historic Rye Patch mine. Additional small mine workings are present along the entire strike of the mineralized corridor, and a secondary, parallel zone is evident from the distribution of the old prospects and workings.  Information for the majority of the historic underground workings is not available; however, mine maps for the historic Rye Patch mine do exist and show high‑grade gold and silver associated with a low-angle thrust fault zone.  The style of mineralization and structural setting look very similar to the Gold Ridge property located to the south, and the Florida Canyon mine located to the north.

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 reviewed and approved the contents of this news release.

About Rye Patch Gold Corp. 

Rye Patch Gold Corp. is a Tier 1, well-funded junior mining company led by a seasoned management team that has participated in major discoveries totaling over 100-million ounces of gold.  The team is engaged in the acquisition, exploration and development of quality resource-based gold and silver projects along the emerging Oreana trend and the prolific Cortez trend.  Benefitting from its strong financial position, the Company’s strategy is to balance development and exploration risk, creating value by:

  • Advancing the Lincoln Hill project toward production;
  • Pursuing a world class discovery – Garden Gate and Patty – contiguous to and on strike with Barrick’s Goldrush deposit; and
  • Seeking new project opportunities and accretive transactions.

The Company’s cash and cash flowing royalty allow for progress without dilution to shareholders. For more information about the Company, 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 financial position of Rye Patch; the timing and content of work programs; the results of exploration activities and development of mineral properties; the interpretation of drilling results and other geological data; the reliability of calculation of mineral resources (and, in respect of the Coeur Rochester mine 3.4% NSR, the reliability of calculation of Coeur’s mineral resources and reserves); the reliability of calculation of precious metal recoveries; the 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.

January 14th, 2016|