“Rye Patch picked up the Wilco Property back in 2006 as a Newmont Mining Corporation TSX:NMC farm-out. We had some new ideas with regards to the geology and mineralization and conducted drill programs on the property in 2007, 2008, 2009 as well as last year. We put together a 43-101 gold and silver resource of about 2.1 million ounces gold and, I believe, 20 million ounces silver. In 2010, we started to hit some very high grades on the northern side of the Section Line resource area. We followed that up again in the fall and continued to have success in high grades over distances of five to 15 metres. We mounted a core program this year to try to get a better handle on the geology and a better understanding of the mineralization. It’s an east-northeast structure, with high grades that we’ve been able to put together over a strike length of about 500 metres, widths of about 50 to 75 metres, and thicknesses between 5 and 15 metres, with grades between 5 g/t and 45 g/t. We continue to drill and we believe that it will add ounces to the resource. We’ll continue to delineate that through 2011, with the idea of putting out a new resource on Wilco, including this new high-grade zone, early in 2012.
“I think these assays are pretty good. They show that the drilling is fairly predictable—we can predict where the structure’s going to be. And we’re hitting grades and alteration along a 500-metre long strike length.
“What we want to do is get to some critical mass. Newmont just paid over $400 per ounce to Fronteer Gold—they’re already miners, good miners, and we feel we’re pretty good finders. So the hand-in-glove fit is for us to deliver ounces to the likes of Newmont or Barrick Gold Corporation TSX:ABX or Kinross Gold Corporation TSX:K or others already operating in Nevada.
“We’re very happy with the project. Back in 2006, we had about 150,000 ounces gold to start with. We proved it up to over 2 million ounces gold and over 20 million ounces silver based on a new idea. I guess it goes to show that new ideas can bear fruit in old districts.”
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