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Posts tagged ‘Rye Patch Gold Corp (RPM)’

To The Fronteer

May 12th, 2011

Rye Patch Works Toward Eight Million Nevada Gold Ounces

By Ted Niles

Some junior miners are uncertain about it. Others are coy. Rye Patch Gold announces its intention in big block capitals on its website: “Build a critical mass of quality gold and silver ounces in the ground to entice a buyout.” President and CEO Bill Howald further elucidates the concept: “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 or Kinross [which owns 15% of Rye Patch] or others already operating in Nevada.”

Rye Patch has four properties that occupy 85 square kilometres in Nevada. Its gold inventory consists of 986,000 gold ounces measured and indicated, 2.12 million ounces inferred. Its silver inventory consists of 9.84 million ounces measured and indicated, 30.5 million ounces inferred. All categories considered as gold equivalent totals 3.9 million ounces.

The increase in Rye Patch’s resource is being driven by its Wilco Project on the Oreana Trend. Howald says, “We picked it up back in 2006 as a Newmont 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. 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.”

Rye Patch Works Toward Eight Million Nevada Gold Ounces

Wilco assays released May 9 include 2.25 g/t gold and 10.2 g/t silver over 6.1 metres, 1.7 g/t gold and 28.4 g/t silver over 11.3 metres (including 4.28 g/t gold and 74.6 g/t silver over 2.8 metres), 2.25 g/t gold and 31.9 g/t silver over 12 metres (including 7.04 g/t gold and 92.1 g/t silver over 1.8 metres) and 6.22 g/t gold over 4.8 metres (including 16.4 g/t gold over 1.4 metres).

March assays included 2.17 g/t gold over 17.3 metres (including 9.98 g/t over 3 metres), 31.75 g/t gold and 106.3 g/t silver over 2.1 metres, and 3.86 g/t gold and 31.81 g/t silver over 37 metres (including 40.33 g/t gold and 175.88 g/t silver over 2.2 metres).

Howald calls the May results “pretty good” and the March results “outstanding.” He adds, “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. 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.”

The hand-in-glove fit is for us to deliver ounces to the likes of Newmont or Barrick or Kinross – Bill Howald

He concludes, “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 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.”

The company’s shares have risen fairly steadily from a low of $0.12 in September 2010. There are currently 125 million shares trading at $0.37 for a market cap of $46 million.

According to a March 3 analyst report by Ubika Research: “We believe that Rye Patch is currently undervalued. With the acquisition of Fronteer Gold Inc by Newmont Mining Corporation, investor attention is being focused on Nevada gold juniors… Based on Fronteer Gold Inc’s known resource deposit of 8.1 million ounces (including the interim resource estimate at the Gold Canyon project) this takeover price represents a $288/oz valuation… As Rye Patch proves up its resource estimate and crosses the 5 million oz benchmark in ounces it would be in the sights of majors like Newmont or Barrick.”

Rye Patch President Bill Howald on Nevada assays of 6.22 g/t gold over 4.8m

May 10th, 2011

“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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View Company Profile

Rye Patch President Bill Howald on Nevada assays of 31.75 g/t gold over 2.1 m

March 3rd, 2011

“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

Rye Patch reports Nevada Assays up to 12.73 g/t Gold over 8.4m

March 2nd, 2011

Rye Patch Gold Corp TSXV:RPM announced assay results from its Wilco Project in Nevada. Highlights include 2.17 g/t gold over 17.3 metres (including 9.98 g/t over 3 metres), 1.79 g/t gold and 11.08 g/t silver over 32.4 metres (including 14.38 g/t gold and 22.9 g/t silver over 1.2 metres), 31.75 g/t gold and 106.3 g/t silver over 2.1 metres, 1.29 g/t gold over 36.5 metres, 1.36 g/t gold over 31.2 metres, and 3.86 g/t gold and 31.81 g/t silver over 37 metres (including 40.33 g/t gold and 175.88 g/t silver over 2.2 metres).

President/CEO Bill Howald tells ResourceClips.com, “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,” Howald continues. “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,” Howald concludes. “Who can’t be happy with 30-gram gold, right?”

View Company Profile

Contact:
William C. Howald
President/CEO
604.638.1588

by Ted Niles

Rye Patch reports Nevada Assays including 3.77 g/t Gold over 12.2m

January 12th, 2011

Rye Patch Gold Corp RPM:CA announced assay results from its Lincoln Hill Project in Nevada. Highlights include 1.54 g/t gold over 29 metres (including 22.6 g/t over 1.5 metres), 3.77 g/t over 12.2 metres (including 9.44 g/t over 4.6 metres), 1.23 g/t over 9.1 metres, 1.02 g/t over 9.1 metre and 1.1 g/t over 13.7 metres (including 5.46 g/t over 1.5 metres).

President/CEO William Howald said, “We are extremely pleased with the outcome of the 2010 drilling program on our 100% controlled Lincoln Hill property. The drilling shows the property has good upside and expansion potential.” The Lincoln Hill Project has an inferred mineral resource estimate of 380,000 ounces gold and 9.5 million ounces silver.

View Company Profile

Contact:
Rye Patch Gold Corp
604.638.1588

by Ted Niles