Provides Florida Canyon Mine Update
Vancouver, British Columbia, August 24, 2017 – Rye Patch Gold Corp. (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) (the “Company” or “Rye Patch”) is pleased to announce that its financial statements and management’s discussion and analysis for the second quarter (“Q2”) ended June 30, 2017 have been filed with the securities regulatory authorities and are available at www.SEDAR.com and on the Company’s website.
The following update is provided for the Company’s flagship Florida Canyon mine in Nevada. All amounts are shown in U.S. dollar unless otherwise noted.
- Poured first gold from the new South Heap Leach Pad at the end of April 2017;
- Completed phase one of the new leach pad with ore stacking on portion 1B ongoing;
- Stacked 560,000 tons of ore during Q2;
- Improved strip ratio from 2.80:1 in Q1 to 1.25:1 in Q2;
- Increased crusher through-put, with crusher out-performing plan by 20 to 40 percent;
- Improved availability and utilization of the haulage fleet;
- Increased carbon plant efficiencies after rebuilding kiln and replacing acid wash plant;
- Mined and processed ore grades within five to 10 percent of modelled tons and grade;
- Completed leach pad audit which showed gold recovery within one percent of modelled recoveries;
- Recruited mine operators and technical staff to build workforce to near 100 percent capacity;
- Sold 100 percent of gold produced into the forward sales contract at $1,275 per ounce of gold, and;
- Purchased four 785C haulage trucks for $3.67 million, augmenting the current fleet and enabling planned production increases.
- At the end of the period the Company had cash and cash equivalents of Cdn.$22 million and had drawn down Cdn.$28.9 million of its credit facility.
Rye Patch President and CEO Bill Howald said, “During the quarter we welcomed Mike Iannacchoine as the Florida Canyon mine manager who is leading the team through the final stages of ramp-up into commercial production.”
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 mining operations, resource projects and exploration upside. The combination of operations and organic growth 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
Tel.: (604) 638-1588
Fax: (604) 638-1589
This news release contains forward-looking statements relating to future plans and objectives of the Company, future deliveries of gold, 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: future deliveries of gold pursuant to the forward gold price contract 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.