Vancouver, British Columbia, December 18, 2015 – Rye Patch Gold Corp (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) (the “Company” or “Rye Patch”) is pleased to announce that it has re-negotiated and amended (the First Amendment) the Annual Exploration Expenditure with the Barrick, McEwen Mining, and Chapleau Resources (the Barrick Group). The old and new Annual Exploration Expenditure are summarized below. The First Amendment allows for an additional year to complete the US$5-million Exploration Expenditure obligation outlined in the October 18, 2011, Exploration, Development and Mine Operating Agreement.
|Year||Old Annual Exploration Expenditures||New Annual Exploration Expenditures||New Aggregate Expenditures|
|December 31, 2012||$500,000||$500,000||$500,000*|
|December 31, 2013||$700,000||$700,000||$1,200,000*|
|December 31, 2014||$850,000||$850,000||$2,050,000*|
|December 31, 2015||$1,450,000||$800,000||$2,850,000*|
|December 31, 2016||$1,500,000||$1,000,000||$3,850,000|
|December 31, 2017||$1,150,000||$5,000,000|
* Commitment met
“The Patty project is a high risk, high reward venture that requires thorough and rigorous geologic input before each drillhole is permitted and started. The protracted permitting process in the area doesn’t allow Rye Patch much flexibility, so when a target does not pan out as envisioned, changing the drill strategy in mid-stream is not an option.
We greatly appreciate our partners allowing us the additional year to complete the earn-in so we can concentrate on making a new discovery at Patty”, stated William Howald, the Company’s President and CEO.
The 2015 drill program focused on two areas, Indian Creek and Goldrush. The targets were selected using geologic mapping, detailed geologic cross sections, geophysical interpretation, and in-house knowledge of Carlin-style deposits.
The Company selected flooded reverse circulation drilling as the method to complete the proposed drillholes because of its ability to provide quality, uncontaminated sample material for assay. Barrick supported the recommendation based on their experience at Goldrush. The drilling method presented several technical challenges, including retrieving a high quality sample from the deep drillholes.
A total of 1,905 metres (6,250 feet) was completed in three flooded-reverse-circulation drillholes at the Indian Creek target.Â Based on geologic logging and geochemistry, the drillholes did not reach the lower-plate target horizon, and a review of the geologic model is in progress to re-assess key elements in the Indian Creek target.
The Goldrush target was not drilled because the three holes at Indian Creek went over budget. Challenging ground conditions and the learning curve associated with a new drilling method along with increased costs for materials and mud caused the budget overage.
RP-009 is a vertical drillhole completed to a depth of 762 metres (2500 feet). The proposed target was lower-plate lithologies in a postulated rollover anticline associated with a high-angle fault. The drillhole finished in upper plate rocks. Geochemical analysis returned a strong arsenic anomaly near the bottom of the drillhole starting at 700 metres (400-1500 ppm As) suggesting the presence mineralization at deeper levels than initially targeted.
RP-010, also vertical, was drilled to 686 metres (2250 feet). The target was the lower-plate sequence and intersecting high-angle faults (possible feeders). The drillhole never left the upper-plate lithologies; however, anomalous low-level gold was intercepted. This drillhole was converted to a water monitoring well for Barrick’s Goldrush deposit located roughly 15 kilometres to the north.
RP-011 is an angle drillhole (Azimuth 270 and dip 55) completed to a depth of 457 metres (1,500 feet). The drillhole remained in upper-plate lithologies its entire length.
Rye Patch Gold US Inc. maintains a strict quality control program at all of its projects. All drill samples are submitted to American Assay with assay blanks and gold and silver standards. Rye Patch inserts approximately one quality control sample for every ten samples submitted to the assay laboratory. The reverse circulation character samples are logged and photographed on site. Rye Patch Gold US Inc. collected the samples and transported them to one of American Assay’s preparation facilities located in either Elko or Reno, Nevada. American Assay performed all analysis at their 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 ICP finish. Gold values above 10 g/t gold are confirmed using fire assay with a gravimetric finish. Silver is analyzed using a two-acid digestion and an ICP finish. Silver values are re-analyzed with a four-acid digestion and ICP finish on all samples with silver values greater than 10-g/t silver. Silver values over 100 g/t silver are re-analyzed using volumetric dissolution.
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.
William C. (Bill) Howald, CEO & President
Rye Patch Gold Corp
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.