Vancouver, British Columbia, September 27, 2016 – Rye Patch Gold Corp. (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) (the “Company” or “Rye Patch”) is pleased to provide an update of the ongoing activities at the Florida Canyon mine. Overall, the critical path to restart is on schedule and on budget for completion in Q4 of 2016. The 3 critical items to re-start are: 1) building the new phase-1 leach pad, 2) moving the crusher, and 3) refurbishing the fleet.
Building the new phase-1 leach pad
The construction of the phase-1 leach pad is currently on schedule and under its $8mm budget.
On August 25th coarse earthwork started on pad and associated ponds. Currently 75% complete, the clay under liner is being manufactured on site, while plastic liner for the ponds and pad will be rolled out in October.
The pad is 100 acres (405,000 square metres) in surface area and, along with the ponds and piping, will be completed with ore anticipated to be placed on the pad by the end of November 2016.
Moving the crusher
The crusher relocation project is ahead of schedule and on target for its $2mm budget.
The crusher is being moved from the Standard mine approximately 8km (5miles) northward to the Florida Canyon lay down yard; coarse earthwork at the crusher site is almost complete, and the foundation work has started. A concrete foundation will be poured at the end of September; the crusher will be mounted to the foundation and should be operational by approximately mid‑October. Stockpiling and crushing of over liner and ore will commence at the end of October.
Refurbishing the fleet
The fleet maintenance is ahead of schedule and under its $3mm budget.
One loader and 4 trucks currently remain to be refurbished. The full complement of the fleet is three (3) loaders, twelve (12) 785 Cat haul trucks, five (5) 777 Cat haul trucks, two (2) water trucks and one (1) grader.
The Florida Canyon restart is on schedule to produce gold from the new leach pad facility in late 2016 and to ramp up toward full production in Q1 2017. Manpower ramp-up is also in progress, with the full complement of staff to be on site in late 2016 – early 2017.
Florida Canyon Mining Inc. continues to produce and sell gold from the existing leach pads at the Standard and Florida Canyon mines, with the revenue from the gold sales contributing to Florida Canyon re-start costs.
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 Nevada based, Tier 1, well-funded mining company led by a seasoned management team with a wide range of operations and project development successes. The team is 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. Benefitting from its strong financial position, the Company has leveraged its cash to acquire the operating Florida Canyon gold mine. The Company 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 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 relating to 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 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.