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| | May 18, 2010
Rye Patch Gold Announces First Resource Estimate For Lincoln Hill
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| | News Release No. 10 - 10
Vancouver, British Columbia, May 18, 2010 - Rye Patch Gold Corp (TSX-V: RPM; OTC: RPMGF) ("Rye Patch" or the "Company") announces the first National Instrument 43 101 (NI43 101) compliant resource estimate for the 100% controlled Lincoln Hill project based on the Company's 2008 and 2009 drill campaigns. The resource table below shows the new Lincoln Hill gold and silver inferred resource estimate using a 0.343 g/t (0.01 opt) gold and gold equivalent (gold equivalent or Aueq) cut-off grade.
Cutoff Grade
(Gm/Tonne) |
Tonnes
(1000's) |
Au
(Gm/Tonne) |
Gold
Ozs |
Ag
(Gm/Tonne) |
Silver
Ozs |
0.343 |
17,215 |
0.686 |
380,000 |
17.143 |
9,488,000 |
"With Wilco, Jessup and now the Lincoln Hill resource estimates complete, the increased gold and silver resources suggest that the Oreana trend has significant potential and scale. The Company is advancing the Oreana trend projects and is continuing to pursue other high-quality resource projects in Nevada", stated William C. (Bill) Howald, the Company's CEO and President.
The new gold and silver resource estimate for Lincoln Hill is based on 3-D geologic models that incorporated 4,449 individual verified gold and silver assays from 49 drillholes including Rye Patch's 43 reverse circulation drillholes and 4 core holes. Block model grades were interpolated from 1,094 down-the-hole composites using inverse distance methodologies. No capping was required. The silver resource was prepared using the same geologic and estimation parameters as the gold block model estimation. The model uses 3-D blocks which are 6 metres in height, width, and depth. Using US$900 per ounce for gold and US$18 per ounce for silver, an inferred gold equivalent resource of 569,760 ounces with an average grade of 1.029 g/t Aueq was estimated. The resource is stockwork zone located at the surface with high-grade feeder structures internal to the main mineralized body.
SEWC used industry-accepted standards to reclassify this new resource. Geologic interpretations were incorporated into the new resource for greater confidence in the resource estimate. Cut-off grades were calculated based on referencing up-to-date costing structures that are publically available.
The resource is classified using a combination of distance to the nearest sample, the number of samples, and number of holes used to estimate each block, while also taking into account project history, database quality, sample integrity and geologic understanding. Because the Lincoln Hill drillholes are few and widely spaced, SEWC classified the resource as inferred. Additional drilling may result in upgrading the inferred resource to measured and indicated resources.
Scott E. Wilson Consulting, Inc. (SEWC) of Denver, Colorado completed the new resource estimate under the direction of Scott E. Wilson who is a qualified person as defined by NI43 101. Mr. Wilson is responsible for, and approves of, the technical disclosure in this news release. The NI43-101 Lincoln Hill project technical report will be posted on SEDAR at www.sedar.com within 45 days of this news release.
As announced today on the Company's Lincoln Hill project, together with the Company's previous announcements on May 11, 2009 and June 2, 2009 in respect of the Wilco and Jessup projects, Rye Patch Gold's resource inventory is now comprised of 1,182,780 ounces of gold equivalent in the measured and indicated category plus 2,727,100 ounces of gold equivalent in the inferred category. The following table summarizes Rye Patch Gold's precious metal inventory in Nevada, USA.
Rye Patch Gold's NI43-101 Resource Inventory (1) |
Property |
Resource
Category
|
Tonnes
(X 1,000) |
Gold
Grade
(g/t) |
Silver
Grade
(g/t) |
Contained
Gold
Ounces |
Contained
Silver
Ounces |
Contained
Au & Au
Equivalent
Ounces (4) |
Wilco (2) |
Measured |
7,526 |
0.69 |
4.595 |
164,000 |
1,111,000 |
186,220 |
Indicated |
30,844 |
0.51 |
3.601 |
522,000 |
3,638,000 |
594,760 |
Inferred |
121,838 |
0.41 |
5.075 |
1,660,000 |
19,871,000 |
2,057,420 |
Jessup (2) |
Measured |
7,775 |
0.51 |
8.745 |
128,000 |
2,184,000 |
171,680 |
Indicated |
12,642 |
0.41 |
7.167 |
172,000 |
2,906,000 |
230,120 |
Inferred |
4,494 |
0.55 |
7.922 |
77,000 |
1,146,000 |
99,920 |
Lincoln Hill (3) |
Measured |
- |
- |
- |
- |
- |
- |
Indicated |
- |
- |
- |
- |
- |
- |
Inferred |
17,215 |
0.69 |
17.143 |
380,000 |
9,488,000 |
569,760 |
Total Measured & Indicated Resources |
986,000 |
9,839,000 |
1,182,780 |
Total Inferred Resources |
2,117,000 |
30,505,000 |
2,727,100 |
(1) All resources on 100% basis. Metallurgical recoveries and net smelter returns are assumed to be 100%. Conforms to 43-101 resource definitions;
(2) Cutoff grade for Wilco Measured and Indicated resource is reported at 0.2 g/t Au for oxide mineralisation and 1.45 g/t Au for sulphide mineralisation. The Inferred resource cut-off grade is reported at 0.2 g/t Au for oxide, sulphide and carbonaceous ore types; however, a higher opt Au cut-off grade may be required to upgrade the inferred resource to the measured and indicated resource category. Cut-off grade for Jessup is reported at 0.2 g/t Au for oxide mineralisation and 0.34 g/t Au for transition and sulphide mineralisation; and
(3) The Inferred resource is reported at a cut-off grade of 0.34 g/t (0.01 opt) Aueq for oxide and transitional ore types;
(4) Wilco, Jessup and Lincoln Hill resources includes Au equivalent ounces (Aueq.); where Aueq. = (Au ozs) + (Ag ozs X $Ag/oz)/$Au/oz, for Au/oz = $900, and Ag/oz = $18.
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Rye Patch Gold maintains a strict quality control program at all of its projects. Drill samples are picked up on site by ALS Chemex's preparation and analytical facility located in Nevada. Gold analyses are conducted on 1-assay ton prepped samples with gold determined using industry standard fire assay methods, with an atomic absorption finish. Gold over limits are determined using fire assay with a gravimetric finish. Silver is analyzed using ICP-MS with silver over limits determined using aqua-regia digestion with an ICP-AES or AAS finish. Gold and Silver check assays were delivered to Florin Analytical Services LLC of Reno, Nevada. The check assay program repeated gold and silver determinations for approximately ten-percent of the 2008 and 2009 drill programs.
Rye Patch Gold Corp. is a well-funded, Tier 1, Nevada-focused and discovery-driven company seeking to build a sizeable inventory of gold and silver resource assets in the mining friendly state of Nevada, USA. The Company's seasoned management team is engaged in acquisition, exploration and development of quality resource-based gold and silver projects. Rye Patch Gold is developing its primary assets -- the advanced-stage Wilco, Lincoln Hill and Gold Ridge projects located along the emerging Oreana gold trend in west-central Nevada and the Jessup project in Churchill County, Nevada. 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 Rye Patch Gold, 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
info@ryepatchgold.com
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 timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, 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.
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