“The company picked up the Wilco property back in 2006, when we were a private company. It was the project that we did our IPO on. It’s one of three projects that have resources on them. Those three projects are fairly compact and close together, constituting a district. That district sits along what we call the Oreana Trend. Regarding Wilco, what we’ve been doing is working in a target area called the North Basin. We’ve been in that area since late 2009, and we’ve had some success starting in the spring of 2010. We followed up that with some additional drilling which seemed to continue to bear fruit: a high-grade west-southwest oriented structure that sits just north of our Section Line gold deposit. What we’re seeing in this new area are very high grades over some significant thicknesses. We’re seeing grades between 10 and 15 grams.
“I think today’s results are pretty outstanding. They’re showing that our geologic model is intact. We understand now what the controls are, and there’s some predictability to the model in that we’re able to follow-out the high grade—we extended it roughly 100 metres to the west. High grade is fairly challenging to follow but it seems like our geologic model is working well. And we’ll continue to follow that out. What’s most interesting to me is that high-grade feeder zone is not quite parallel to the Section Line resource. So off to the west the high-grade structure will intercept the resource area. And that’s an area that we have not yet drilled. So this program will address that as well.
“Overall, we’ve put together a $3.5 million budget, with a majority of that budget—$2.25 million, I believe—focussed on the Oreana Trend between Wilco, Lincoln Hill and Gold Ridge, three projects that are immediately adjacent to each other. We’ll focus on Wilco with about $750,000—that program is ongoing right now. It’ll be focussed mainly on following out that high grade zone to the west. Immediately to the east of Wilco is our Gold Ridge property. In the fall of last year we had an initial drilling program on two of the property’s five targets—it’s quite a large property. Those two targets returned gold equivalent grades between a half-gram, a gram over zones that were 25 to 40 metres thick. We’re pretty excited about that because they’re brand new target areas. While the grades weren’t that high, the zones certainly had pretty good thicknesses. So we’ll follow that up; there’s roughly a half million dollars that we’ll spend there. Then, just up the road from Gold Ridge and Wilco, there’s our other project called Lincoln Hill. We had a fall drilling program there where we augered into a brand new zone—the Jefferson Zone—and we’re following up that discovery with about a $1 million program.
“What we’re seeing in Nevada are companies like Newmont and Barrick already mining—trying to keep their milling capacity full. Newmont is hauling ore from as far away as Colorado back to Nevada to keep some of their mills full. So our idea is that we want to get to a critical mass of ounces in the ground and then be a takeover candidate for a Newmont or a Barrick. On the Oreana Trend our neighbours are Barrick, Newmont and Coeur d’Alene Mines. So we’re in a pretty good neighbourhood of majors and mid-tier producers already. If you look at the deal that was done with Newmont and Fronteer Gold, it seems like the threshold for ounces is around 5 million. When Newmont took over Fronteer, they had over 5 million ounces in three deposits that were scattered across Nevada—with about 300 or 400 kilometres between each project. The beauty of Rye Patch is we’ve got 4 million ounces in a fairly compact area; they’re all within a 10 to 15 kilometre radius.
“We’re very happy with the project’s progress. Who can’t be happy with 30-gram gold, right?”
View Company Profile
View Press Release Summary