Rye Patch Discusses Exploration Programs and Budget for 2014
Rye Patch Discusses Exploration Programs and Budget for 2014
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 02/14/14 -- Rye Patch Gold Corp (TSX VENTURE: RPM)(OTCQX: RPMGF)(FRANKFURT: 5TN) (the "Company" or "Rye Patch") is pleased to announce its programs and budget for 2014.
-- Drilling programs are planned along the Oreana (Lincoln Hill/Gold Ridge and Wilco), and Cortez (Garden Gate Pass and Patty) trends; -- Drilling has started on the eastern target at Garden Gate Pass; -- Drill programs will run from February to September; -- US$3.8 million in exploration is planned at four project locations - US$2.0 million at the Oreana trend and US$1.8 million at the Cortez trend; and -- The Rochester mine NSR royalty is anticipated to more than cover all 2014 exploration expenditures.
Rye Patch Gold has approved a US$3.8-million 2014 budget for exploration and drilling programs along the Oreana and Cortez trends in Nevada. The exploration programs will include drilling up to 10,000 metres in four project locations. A summary of the program is as follows:
Garden Gate Pass: Drilling at Garden Gate Pass has started with mud rotary drilling on the eastern target of the property. Gravity and seismic geophysical surveys have been interpreted and suggest a carbonate ridge on the eastern side of the project area. Drilling will confirm whether the carbonate is the prospective Wenban Formation that hosts Barrick Gold's Goldrush deposit (15-million ounces of gold) located roughly 3 kilometres to the north. The drilling is on the projection of Barrick's drill pattern. A total of US$550,000 is planned on the project.
Patty: Drilling in 2012 and detailed surface exploration work in 2013, have outlined two priority targets on the Patty property. The first is the geologic extension of the Goldrush anticline that host gold mineralization at Barrick's Goldrush deposit located 10 kilometres to the north. The target is located in the northwestern portion of the property.
The second target area is located on the southwest portion of the property along a major structural feature. Widespread Carlin-style geochemistry (gold, arsenic and antimony) has been returned from surface rock-chip sampling including a 9.4 g/t gold sample from the fault zone. Drilling will target carbonate lithologies along the structural zone. The target is very similar to Cortez Hills located 20 kilometres northward along a similar structural zone.
The budget will total US$1,250,000, and drilling will commence in July.
Lincoln Hill/Gold Ridge: At Lincoln Hill, mapping shows the strike extension of the mineralized zone southward toward Independence Hill. Surface mapping and rock-chip sampling at Independence Hill confirm four separate high-grade corridors crossing outcrop exposures at the Alexander Hamilton, Buck&Charlie, Looney, Hill Top, and Octopus historic mines.
Near the Buck&Charlie mine, a rock-chip sample returned 37.5 g/t Au and 2,070.0 g/t Ag from a breccia outcrop. The breccia has been mapped for 380 metres along a southwest to northeast trend. At the Looney mine, a rock-chip grab sample returned 22.87 g/t Au and 9.7 g/t Ag from quartz vein material. Surface exposures in the old workings and shafts indicate the zone is at least a 300 metre strike length, and at the Octopus mine, several samples returned significant gold and silver along 160 metres of strike along the main structural zone including 1.62 g/t Au and 568.0 g/t Ag; 1.11 g/t Au and 77.6 g/t Ag; 0.05 g/t Au and 497 g/t Ag; 0.69g/t Au and 240.0 g/t Ag. The historic workings follow a breccia zone.
At the Roosevelt zone, significant surface gold and silver assays were returned including 34.79 g/t Au and 779 g/t Ag; 14 g/t Au and 183 g/t Ag; 97.92 g/t Au and 1527 g/t Ag; and 97.5 g/t Au and 1303 g/t Ag along a high-grade structural trend.
At Independence Hill, the overall strike length of the breccia, vein, and stockwork zones is 1.3 kilometres which has the potential to significantly expand the Lincoln Hill resource.
Drilling on north Gold Ridge anomaly will be addressed this summer. At north Gold Ridge, surface rock-chip samples taken at random intervals along the jasperoid outcrop returned encouraging results such as 3.120 g/t Au and 19.2 g/t Ag, and 2.860 g/t Au and 51.1 g/t Ag.
Drilling on the project will begin in May and will cost US$1,150,000.
Wilco: Exploration activities continued at Wilco with new detailed mapping, rock-chip sampling and interpretation of geophysical and historical drilling data. This work was designed to extend the Section Line and Colado gold and silver resource areas by identifying drill targets located adjacent to these resources. Based on this work, two promising drill target areas were identified.
The Rhyolite Hill target is located immediately north of the historical Willard pit, covering an area of about 700 by 200 metres of strongly silicified and mineralized rhyolite outcrops, previously unexplored. A total of 88 surface rock-chip samples were collected from this area, Five rock samples collected along the contact zone between the main rhyolitic feeder zone and the Triassic sediments, returned between 2.1g/t Au and 7.46 g/t Au and 1.1g/t Ag and 31g/t Ag. This intrusive structural zone extends for a strike length of about 600 metres and represents the north extension of a major basement fault, controlling the gold mineralization at the old Willard Hill pits.
The Andesite target area is located between the Section Line and Colado resource areas, within the two Whittle pits located one kilometre apart. The drilling completed at the margins of these resource areas indicated the distinct possibility of correlation of the gold mineralization located along the contact zone between the siltstone and claystone units at both Colado and Section Line. This favourable zone is covered at the target area by an altered andesite plate, anomalous in gold, silver and trace elements. Historical drilling in the area consisting of scattered shallow drillholes intersected numerous anomalous gold intervals with several intercepts ranging between 0.2 and 7.4 g/t Au over 1.5 to 3 metres. These promising geochemical data from the andesite plate are indicative of "leakages" from an underlain mineralized zone, probably representing the Colado and Section Line mineralized horizon.
Drilling will commence in April with a budget of US$850,000.
A rough break down of exploration expenditures by trend is US$2.0 million along the Oreana trend, and US$1.8 million along the Cortez trend. In addition, the Oreana preliminary economic analysis is on track for a Q1 delivery. The Rochester mine NSR royalty is anticipated to more than cover all 2014 exploration expenditures.
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 verified the information contained in, and has reviewed and approved the contents of, this news release.
Rye Patch Gold Corp. is a Tier 1, well-funded junior mining company with a royalty revenue stream from the operating Rochester silver mine and significant gold and silver resources, all located in the mining friendly state of Nevada, USA. The Company's seasoned management team is engaged in the acquisition, exploration, and development of quality resource-based gold and silver projects. Rye Patch Gold US Inc. controls over 75 square kilometres (30 sq. miles) of land, and has a 3.4 % Net Smelter Return (NSR) royalty from the Rochester silver mine along the Oreana trend located in west-central Nevada. The Company is aggressively developing gold and silver resources along this emerging trend, utilizing existing funds and cash flow from the NSR royalty which is fully leveraged to the price of gold and silver. In east central Nevada, Rye Patch Gold US Inc. is exploring 66 square kilometres of exploration land along the prolific Cortez trend contiguous to Barrick's new Goldrush deposit. The Company has established gold and silver resource milestones and time frames in order to build a premier resource development company. For more information about the Company, please visit our website at www.ryepatchgold.com.
On behalf of the Board of Directors
William C. (Bill) Howald, CEO & President
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.
Contacts: Rye Patch Gold Corp. (604) 638-1588 (604) 638-1589 (FAX) email@example.com www.ryepatchgold.com