Vancouver, British Columbia, May 13, 2015 – Rye Patch Gold Corp (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) (the “Company” or “Rye Patch”) announces the commencement of a detailed metallurgical program on its 100% owned and controlled Lincoln Hill project in Pershing County, Nevada.
- To determine, if crushing may materially increase recoveries from 64% for Gold and 59% for Silver (based on uncrushed Run-of-Mine material PEA May 21, 2014) to a recovery closer to 92% Gold and 61% for Silver – the documented recovery profile at the adjacent Rochester Mine; and
- To provide data for trade-off studies to optimize crush size, capex, costs and NPV.
Metallurgical Test Program:
- A total of 18 bottle roll tests and 6 column tests will be initiated from the core material;
- Drill core will be PQ size (8.5 cm or 3.35 inch) core to maximize the amount of material collected; and
- The test program is being conducted by McClelland Laboratories in Reno, Nevada.
“Based on the geology and mineralization style, we know the Lincoln Hill gold and silver deposit is similar to the neighboring Rochester mine. The detailed met program will provide metallurgical information that could add tremendously to the project economics making Lincoln Hill even more robust while adding only an incremental amount of capital for a crushing circuit. In other words, the benefit of crushing could be significant on the project NPV”, stated William Howald, the Company’s President and CEO.
Rye Patch Gold is initiating its feasibility-level metallurgical (“Met”) program on the 100% owned and controlled Lincoln Hill project. As announced on May 21, 2014, the Lincoln Hill Preliminary Economic Assessment (PEA) assumed a run-of-mine heap leach operation with no crushing and a recovery rate of 64% for gold and 59% for silver.Â Using $1350 per ounce for gold and $22 per ounce for silver, the PEA returned a pre-tax IRR of 76.5% and a NPV (5% discount rate) of $64.2-million, and a total cost of $759 per gold equivalent ounce within a $775 gold and $13.56 silver Whittle pit. The low capital expenditure (capex) required to build the mine is estimated at approximately $30 million. Adding a crushing circuit would add an incremental amount to the capex, but could significantly change the project economics.
The met program is designed to identify the relationship between crush size and recovery. As reported at the adjacent Rochester mine owned by Coeur Mining (NYSE: CDE), recoveries are 92% for gold and 61% for silver (as noted on pages 27 and 28 of Coeur Mining’s Annual Report) when the material is crushed to minus 3/8 inch. The Lincoln Hill gold and silver deposit is within the same geologic units with similar alteration, mineralization style, and gold and silver grades. The thesis being tested is whether crushed Lincoln Hill material will recover in a similar manner. The metallurgical program will test this idea.
The met program will also identify the location and size of the gold and silver particles and recovery at different grade ranges for the Lincoln Hill material. In addition, comminution testing will be completed to estimate the unit costs associated with crushing. Acid rock drainage (ARD) testing will be completed to identify any environmental issues with the Lincoln Hill mineralized material.
The met program consists of 18 bottle roll tests using three different gold and silver grade ranges, and six column tests at three different material sizes and two different gold and silver grades. Additional metallurgical testing is planned for 2016.
As reported on December 11, 2013, Kappes, Cassidy and Associates completed bottle roll tests and reported recoveries ranging from 76% to 86% for gold, and from 79% to 87% for silver in oxide material. Sulfide material returned recoveries ranging between 70% and 83% for gold and 50% to 66% for silver.
The metallurgical core drilling program is scheduled to start on May 15, 2015. Core drilling has been contracted to Major Drilling of Salt lake City, Utah, and metallurgical testing will be completed at McClelland Laboratories in Reno, Nevada.
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 totalling 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.