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RYE PATCH UPDATES ROCHESTER PROJECT
RESOURCES BASED
ON COEUR D’ALENE’S RECENT DISCLOSURES
Vancouver, British Columbia, November 6,
2012 - Rye Patch Gold Corp (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) (the
“Company” or “Rye Patch”) updates gold and silver resources on the
LH and OG unpatented lode mining claims in Pershing County, Nevada
based solely on information disclosed by Coeur d’Alene Mines
Corporation (“CDE”). The LH and OG unpatented lode mining
claims are located on lands previously staked by CDE’s subsidiary,
Coeur Rochester Inc. (“CRI”), and which became void prior to the
staking of the LH and OG claims by Rye Patch Gold US Inc., the
Company’s wholly-owned subsidiary.
On September 11, 2012 and October 25, 2012, CDE presented at the
Denver Gold Forum and the Spokane Silver Summit, respectively.
In these presentations, CDE disclosed the amount of reserves and
resources affected by the on-going legal dispute between CRI and Rye
Patch Gold US Inc. Based on CDE’s published 2011, yearend
reserve and resource disclosure in its 10-K and the recent
presentations, the mineral resources on the LH and OG unpatented
lode mining claims are shown in Table 1.
Table 1: CDE’s Coeur Rochester Inc. Measured, Indicated and
Inferred Resources
|
Rochester
Year End 2011 Resources (1) |
Grade
(Ounces/Ton) |
Contained
Ounces(5)
(100% Basis)
X 1000 |
CRI
Ounces (2)
(74% M+I tons)
X 1000 |
LH
and OG Claim Ounces(3) (26% M+I tons)
X 1000 |
|
|
Tons
X1000 |
Silver |
Gold |
Silver |
Gold |
Ageq (4) |
Silver |
Gold |
Ageq (4) |
Silver |
Gold |
Ageq (4) |
|
Measured&
Indicated |
251,472 |
0.45 |
0.003 |
112,348 |
867 |
155,698 |
83,137 |
641 |
115,216 |
29,210 |
225 |
40,481 |
|
|
|
|
|
|
|
|
CRI
Ounces
(59% Inferred
tons) |
LH and OG
Claim Ounces
(41% Inferred Tons) |
|
Inferred |
40,543 |
0.58 |
0.003 |
23,619 |
122 |
29,719 |
13,935 |
71 |
17,534 |
9,683 |
50 |
12,184 |
- Rochester resources from Coeur d’Alene Mines Corporation 2011
yearend resource table at $1,500 per ounces gold and $30 per
ounce silver;
- Coeur d’Alene Mines Corporation disclosure, Denver Gold Forum,
September 11, 2012 (website presentation);
- Converse of Coeur d’Alene Mines Corporation disclosure showing
resources on LH and OG Claims;
- Ageq equals gold ounces times fifty plus silver ounces (Ageq =
((Au*50) + Ag); and
- Separate measured and indicated tons unknown to Rye Patch.
These estimates in respect of the LH and OG unpatented lode
mining claims should not be construed as current mineral resources
attributable to Rye Patch, as they are derived solely from public
information disclosed by CDE, and Rye Patch has not verified any of
the data that CDE has relied upon in estimating CDE’s total
published resources on the Rochester project. Although CDE’s
published report appears to be prepared by a qualified person and
the procedures, methodology and key assumptions disclosed therein
are those adopted and consistently applied in the mining industry,
no independent qualified person engaged by Rye Patch has done
sufficient work to analyze, interpret, classify or verify CDE’s
information to determine any current mineral reserve or resource on
the LH and OG unpatented lode mining claims. Accordingly, the
reader is cautioned in placing any reliance on the above estimates.
The value and quality of the measured, indicated, and inferred
silver equivalent ounces vary with jurisdiction, infrastructure,
geometry, grade and metallurgy. The quality of these ounces is
considered excellent since Nevada has extraordinary infrastructure,
the resource is near surface, and grades and metallurgy are assumed
to be similar as those immediately adjacent in the Rochester and
Packard mines.
CDE reported on December 5, 2011 that based on the 2010 year end
reserve statement, up to 20% of the proven and probable reserve was
affected by the disputed claims. From its September 11, 2012
and October 25, 2012 presentations, CDE now reports that no proven
or probable reserves are located on the LH and OG claims,
notwithstanding a 19% increase in gold price ($1,220 vs. $1,025) and
a 42% increase in silver price ($23 vs. $16.25) used in calculating
the December 31, 2011 year end reserve and resource disclosure.
Last fall, Rye Patch Gold US Inc. located unpatented lode mining
claims on open federally owned public lands of the United States of
America. The federal lands became open for the staking of
unpatented lode mining claims on September 1, 2011 when CRI did not
pay the time-sensitive, mandatory unpatented claim maintenance fee.
As a result of CRI’s failure, its former 541 unpatented lode mining
claims were forfeited and void as a matter of law, and the public
lands became open for the location of unpatented lode mining claims
by United States citizens.
CRI received decision letters from the United States Bureau of
Land Management officially declaring CRI’s former 541 unpatented
lode mining claims forfeited and void as a matter of law. CDE
reported in its 10-K that CRI failed to pay the mandatory claim
maintenance fees, resulting in the former 541 unpatented lode mining
claims becoming void.
Since the federal lands that previously covered the forfeited 541
unpatented lode mining claims were open to mineral location by all
United States citizens, including Rye Patch Gold US Inc., for 56
days, Rye Patch Gold US Inc. began staking the 402 LH unpatented
lode mining claims on the open federal lands. The claim
staking commenced on October 27, 2011, and all monumentation was
completed by November 21, 2011. In late November 2011, Rye
Patch Gold US Inc. contacted CRI to notify it that the 402 LH
unpatented lode mining claims had been staked. CRI responded
by overstaking the senior 402 LH unpatented lode mining claims with
a junior set of claims denoted as the N unpatented lode mining
claims, and this triggered the legal proceedings between Rye Patch
Gold US Inc. and CRI over title to the claims. In 2012, an
additional 11 unpatented lode mining claims were staked on open
lands bringing Rye Patch Gold US Inc.’s total number of unpatented
lode mining cla ims to 413 for the Rochester Project.
Rye Patch Gold US Inc. controls over 100 square kilometres (40
sq. miles) along the Oreana trend. The LH and OG Claims which
comprise the Rochester Project consist of 413 unpatented lode mining
claims which cover over 30 square kilometres (7,500 acres).
The Company is a 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 the
acquisition, exploration, and development of quality resource-based
gold and silver projects. Rye Patch Gold US Inc. is developing gold
and silver resources along the emerging Oreana trend, located in
west-central Nevada, and is exploring 66 square kilometres along the
Cortez trend near Barrick’s two new gold discoveries. 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 |
For additional information
contact: |
|
‘William Howald’ |
Rye Patch Gold Corp |
|
William C. (Bill) Howald, CEO &
President |
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 financial position of Rye
Patch to pursue legal undertakings; the outcome of legal action
relating to the Rochester property and the LH unpatented claims, 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; currenc y fluctuations; and
general market and industry conditions. Litigation is
inherently uncertain and factors that could cause actual results to
differ materially from those in forward-looking statements include
unexpected judicial findings of fact, previously unknown facts
arising, and decisions which depart from past legal precedent and
similar events.
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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