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Location: 110 miles NE of Reno, Nevada Area: 3,276 acres Minerals: Gold, silver Ownership: 100% Status: Exploration Active History With High-Grade Mining The Lincoln Hill and adjacent Gold Ridge properties securely position Rye Patch along the Humboldt gold trend and Rochester mining district of Western Nevada. The Lincoln Hill area has supported active exploration for nearly 150 years, and underground mining in the early 1900s reportedly averaged 7.5 ounces of gold per ton. Most of this work occurred along a 7,000-foot strike length where mine tailings and numerous dumps are found today. Significant visible gold is evident, as well. Bulk Tonnage and High-Grade Underground Potential Both Newmont Mining and Coeur d'Alene Mines investigated the Lincoln Hill property in 2001 and 2002, intersecting anomalous-to-ore grade values in drilling. Analysis of both companies' data by Rye Patch indicates the project contains potential for a bulk-tonnage gold/silver deposit similar to the nearby Rochester Silver Mine and Spring Valley discovery. The Rochester district has produced 4.5 million ounces of gold and 130 million ounces of silver. The Gold Ridge property presents an opportunity to develop a substantial, bulk-minable gold deposit as well as a high-grade underground mining operation. Currently, geological mapping and geochemical sampling results are being compiled to better understand this gold-silver system and possible large diatreme-porphyry complex which has the potential to host a multi-million ounce gold-silver deposit. Rye Patch Exploration in 2008 -- 2.2 Ounces Au/Ton over 25 Feet Rye Patch drilled 2,550 meters in 18 RC holes on both the Lincoln Hill and Gold Ridge targets in 2008, cutting a multi-ounce gold and silver intersection in hole LR-013. The results included 25 feet grading 2.2 ounces of gold per ton starting at 90 feet down hole. In addition, there were numerous significant gold intervals encountered in the program. A second drill program is underway to follow up on LR-013 results. The program will test the high-grade breccias zone along strike and down dip. Lincoln Hill Target Area The Lincoln Hill target is a high-grade, gold-silver-quartz-pyrite-tourmaline-sericite stockwork system with exceptional potential. The system overprints a large, moderate-grade, disseminated replacement precious metal mineralizing system. Rock chip samples collected over an extensive area confirm high-grade gold values hosted in the quartz-tourmaline-pyrite-sericite stockwork alteration. Random surface grab samples collected from pervasively silicified outcrops, excluding the stockwork mineralization, returned anomalous values (100 ppb) to 0.134 ounces of gold per ton. Channel sampling conducted within the central adit underground workings by Coeur d'Alene and Newmont reportedly returned values averaging 0.045 ounces of gold per ton along a horizontal distance of 500 by 300 feet. Significant drillhole intercepts include:
Note: Numerous additional 5 to 10 foot intercepts not shown After review of the Spring Valley deposit, similar hydrothermal breccias, porphyry intrusive and possible breccia pipes associated with a large diatreme complex have been identified at Lincoln Hill. None of the drillholes completed to date tested at depth these potentially mineralized features. Additional field work is warranted to evaluate the property for high-grade mineralization at depth. In addition to precious metals mineralization the altered Rochester Rhyolite hosts potentially valuable mineral assemblages, which include the minerals dumortierite, andalusite tourmaline and massive sericite. Locally, these rocks are silicified and intersected by quartz-tourmaline veins and stockwork, which also may host gold mineralization. Gold Hill Target Area The Gold Hill Target Area is underlain by calcareous and dolomitic rocks of the Lower Triassic Prida Formation, affected by hydrothermal alteration and gold-silver mineralization. This favorable reactive lithostratigraphic unit is affected by the Humboldt Queen fault, a major extensional fault zone, striking N-S and dipping 55º east. In the footwall of this fault, the exposed carbonates are cut by several extensional structures used by the hydrothermal solutions, initially filling fissures as banded quartz veins and finally flooding the carbonates and the existing quartz veins with massive silica, forming impressive jasperoidal breccia bodies and locally decalcifying the surrounding carbonates. The majority of these alteration features are moderately to strongly anomalous in gold (100 to 560 ppb) and silver (15 to 348 ppm). A dump sample from a prospect pit exploring a brecciated limonite-stained quartz vein assayed 0.09 opt gold and 63 opt silver. A two feet wide channel sample from an old trench cutting the ferruginous breccia located in the hanging wall of the Humboldt Queen fault assayed 0.035 opt gold and 0.92 opt silver. This mineralized and oxidized breccia zone was not explored in the past, most of the old workings focused on outcropping quartz veins. Because of poor exposure, the real thickness and extent of this mineralization is unknown along the 1.6 km strike length of the gold-bearing structure. Identification of the unexplored anomalous gold-silver zones, with locally ore-grade oxidized material, as well as the extensive silicification, usually associated with precious-metal mineralization is encouraging. Additional work is warranted. Detailed Project History The earliest prospecting activity occurred in the Lincoln Hill area during the late 1860's. On August 30, 1912, three prospectors discovered rich, quartz-gold "picture rock" scattered throughout the surface along the flanks of Lincoln Hill. According to various reports, the Lincoln Hill mine produced $80,000 in gold and silver through 1917. Other recent production estimates include the existing stoped underground workings, which reportedly averaged 7.5 ounces of Au per ton. Gold and silver have been intermittently mined from Lincoln Hill through the 1980's. Although specific precious metal production figures are unavailable, the existence of extensive underground workings suggests that a significant amount of gold and silver was produced. In addition, the property contains numerous surface prospects; however, only minimal systematic exploration/development work has been conducted at the Lincoln Hill mine site to date. Numerous small dumps exist along the 7,000 feet of strike length, and one very large mine tailings exists at the base of the hill. Visible gold specimens can be found on several of the mine dumps from the bottom to the top of the hill, encompassing approximately 1,000 feet of vertical extent. Approximately 3,000 feet of underground workings exist along the central portion of the mineralized system. The majority of the underground workings is dry and accessible, and reveals the detailed geology, alteration and mineralization, not visible from the surface. Between 2001 and 2002, Newmont Exploration conducted geologic mapping, surface and underground geochemical sampling programs, and drilled 8 RC exploration holes. In the late 1980's, Coeur Exploration drilled 7 RC holes along the upper, eastern portion of the mineralized system. The majority of the drill holes returned anomalous to ore-grade gold-silver mineralization while intersecting significant intervals of silicified and stockwork-veined host rocks. However, the most prospective portion of this extensive mineralized precious metal system with a 1 to 3 million ounce gold-silver target has not been adequately drill tested. The property has a well-developed infrastructure that was established during past mining activities, which includes numerous roads, drill pads and a nearby power line. Lincoln Hill Agreement The newly acquired Lincoln Hill property is comprised of 1 patented lode claim and 34 unpatented mining claims encompassing a total of 291 hectares, of which 28 claims are owned by the Lessors and seven claims are controlled by the Lessors through an option to purchase. The lease is for a 20-year term, renewable on certain conditions. The Lessors will retain a 4% net smelter returns on Lincoln Hill, 25% (or 1% NSR) of which Rye Patch Gold may purchase for US$1 million during the first 7 years of the lease and another 25% (an additional 1% NSR) which may be purchased for US$3 million during the first 10 years of the lease. Rye Patch Gold is to pay the Lessors advance royalties (to be credited towards the Lessors' NSR) by way of cash and common shares of Rye Patch Gold as follows: 100,000 shares upon receipt of stock exchange approval; US$60,000 and 100,000 shares by November 2008; US$65,000 and 100,000 shares by November 2009; US$70,000 and 150,000 shares by November 2010; US$75,000 and 150,000 shares by November 2011; US$80,000 and 150,000 shares by November 2012; and US$80,000 for each year thereafter. In addition, Rye Patch Gold has agreed to undertake the following minimum exploration expenditures on the Property: US$100,000 by November 2008; US$200,000 by November 2009; US$300,000 by November 2010; US$500,000 by November 2011; and US$1,000,000 by November 2012. 2008 Drill Program  Click Here to Enlarge  Click Here to Enlarge Maps & Diagrams: |
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