Rye Patch Gold Corp.
OTC Bulletin Board : RPMGF

Rye Patch Gold Corp.

November 18, 2009 11:35 ET

Rye Patch Arranges the Acquisition of Carlin Trend Gold Resources

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 18, 2009) - Rye Patch Gold Corp. (TSX VENTURE:RPM)(TSX VENTURE:RPM.WT)(OTCBB:RPMGF) ("Rye Patch" or the "Company") is pleased to announce that it has, subject to completion of a binding definitive agreement, arranged to acquire Centerra Gold (U.S.) Inc.'s 64% interest in the Ren project located on the northern Carlin gold trend. The Ren property is a joint venture between Homestake Mining Company of California, a subsidiary of Barrick Gold Corporation, and Centerra Gold (U.S.) Inc. ("Centerra"), a subsidiary of Centerra Gold Inc. (TSX: CG).

Based on a NI 43-101 compliant resource estimate completed by Centerra Gold Inc. and disclosed in its 2008 Year-end Reserve and Resource Summary, the Ren property contains a gold resource summarized in Table 1.

 Table 1: Ren Resource Summary
Cut Off GradeResource CategoryTonnes
(X 1,000)
g/t Au
Rye Patch's
Share (64%) Gold Ounces
8 g/t AuMeasured and Indicated
                        (source Centerra Gold Inc. 2008 year-end resource summary)

"With this acquisition, Rye Patch becomes the only junior mining company to control a substantive gold deposit on the Carlin trend. The Ren acquisition will be an important milestone for the Company and will raise Rye Patch to a new level in the mining sector," declared William C. (Bill) Howald, the Company's CEO and President.

The Ren property consists of 91 contiguous unpatented lode mining claims covering 7.4 square kilometres of the Northern Carlin trend. The southern boundary of the property adjoins Barrick Gold's Goldstrike property. On the Goldstrike property, Barrick is currently mining from the Meikle mine and is developing the Banshee deposits, located approximately 250 metres south of the Ren property. The Meikle/Banshee geology and structural settings continues onto the Ren property.

Rye Patch is prioritizing a number of targets for exploration on the Ren property for drilling in the spring of 2010. The most obvious targets are within the southern portion of the Ren property along the extension of the north-northwest trending Post fault system.

A second target area, located in the north central portion of the property, is the JB zone which hosts the bulk of the existing Ren resource. The deposit footprint, grade and geometry of the JB zone is similar to the operating Meikle mine. There are also several high-grade target zones which have been identified outside the JB zone. A drill program to connect the outlying high-grade drillhole intercepts to the main JB zone is being designed.

The Ren deposit is close to a number of existing gold mining and milling operations and has good access to skilled personnel, power and water sources. With roaster and autoclave milling complexes located within a few kilometres of the property, custom milling of ores is a viable processing option.

"The project contains high-grade gold, multiple targets with potential for resource expansion and is located on one of the most prolific gold belts in the world. The close proximity to infrastructure and a strong operating partner in Homestake/Barrick provides for excellent value to Rye Patch's shareholders. Acquisition of an interest in this gold resource propels Rye Patch closer to its corporate resource inventory goal. At an acquisition cost of approximately US$40 per ounce, completion of the Ren acquisition will be highly accretive to the Company," commented William C. (Bill) Howald, the Company's CEO and President.

The purchase price (the "Purchase Price") for the acquisition will be US$42,000,000, payable in the following manner:

  1. US$2,000,000 upon execution of the Definitive Agreement;
  2. US$10,000,000 24 months after the execution of the Definitive Agreement, or, at its election, Rye Patch may issue that number of common shares with an aggregate value of US$5,000,000 or less and pay the balance of the US$10,000,000 to Centerra in cash; and
  3. US$30,000,000 36 months after the execution of the Definitive Agreement, or, at its election, Rye Patch may issue that number of common shares with an aggregate value of US$15,000,000 or less and pay the balance of the US$30,000,000 to Centerra in cash.

Rye Patch will perform all of Centerra's obligations under the Ren joint venture agreement, including acting as manager. When the Purchase Price has been paid in full, Centerra will transfer the joint venture interest to Rye Patch's subsidiary, Rye Patch Gold US Inc.

Assuming completion of the acquisition of 64% of the Ren project, Rye Patch's resource inventory will increase to 1,944,000 ounces of gold and gold equivalent in the measured and indicated category plus 2,453,795 ounces of gold and gold equivalent in the inferred category. The gold equivalent calculation is based on US$750/oz gold and US$16/oz silver.

Mr. William Howald, AIPG Certified Professional Geologist #11041, Rye Patch's CEO and President, is the Qualified Person as defined under National Instrument 43-101. He has verified the information and has reviewed and approved the contents of this news release.

Rye Patch Gold Corp. 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 acquisition, exploration and development of quality resource-based gold and silver projects. Rye Patch is developing its primary assets – the advanced-stage Wilco project located within 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, please visit our website at www.ryepatchgold.com.

On behalf of the Board of Directors
'William Howald'
William C. (Bill) Howald, CEO & President

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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