Rye Patch Gold Corp.

Rye Patch Gold Corp.

October 15, 2014 09:00 ET

Rye Patch Drills High-Grade Gold at Wilco

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 15, 2014) - Rye Patch Gold Corp. (TSX VENTURE:RPM)(OTCQX:RPMGF)(FRANKFURT:5TN) (the "Company" or "Rye Patch") is pleased to announce the results of its 2014 drilling campaign on the Wilco project located in Pershing County, Nevada along the Oreana trend in west-central Nevada.


  • Drilling established a high-grade corridor within the Colado resource area which is open to the north, northwest, and southeast;

  • The continuity of high-grade gold in the Colado deposit extends 1,300 metres in a northwest direction and 500 metres in a northerly orientation with the two zones coalescing to the south making a "wishbone" shape;

  • A drillhole in Colado returned 22.9 metres grading 1.52 g/t Au;

  • Drilling in the Gap target established continuity between the Section Line and the Colado resource areas including a high-grade intercept of 15.2 metres of 1.82 g/t Au; and

  • At the Rhyolite target, drillholes returned 12.2 metres grading 1.76 g/t Au and 18.3 metres grading 1.41 g/g Au.

Rye Patch Gold US Inc. completed 13 reverse circulation drillings totaling 2,103 metres (6,900 feet) in three target zones - Colado, Gap and Rhyolite. The drilling campaign returned positive results from the three target areas including the recognition of several high-grade gold zones.

At Colado, six drillholes totaling 726.9 metres were completed. Drillhole WR-120 was designed to test the intersection zone between a major northwest and north-northeast feeder faults that define a "Wishbone" shape to the high-grade zone. In drillhole WR-120, gold and silver mineralization start at 70 metres and returned 59 metres grading 1.07 g/t gold and 10 g/t silver including 22.9 metres zone grading 1.52 g/t gold and 12.9 g/t silver. At the north margin of the resource area, drillholes WR-117 and WR-121 extended the mineralization for an additional 100 metres. Drillhole WR-117 encountered the zone and returned 1.32 g/t gold over 9.1 metres starting at a depth of 105.2 metres.

The Colado high-grade zone has a "Wishbone" shape with a northwest and north-northeast oriented zone that intersect to the south. The northwest arm is 1,300 metres by 85 metres while the northern arm is 510 metres by 115 metres in plan view. The zones are open to the north, northwest, and southeast. Additional drilling is being planned.

Table 1 summarizes significant result for RC drill holes WR-117 to WR-121 using a 0.3 g/t gold cutoff for intervals greater than 3 metres.

Table 1: Wilco Project - Colado Target, 2014 Drilling Results (cut off 0.3g/t)
Drillhole Target Au g/t Ag g/t AuEq (1)g/t Drillhole interval (2)metres From metres To metres Total Depth (m)
WR-117 Colado 0.50 2.0 0.54 10.7 71.6 82.3 157.0
WR-117 Colado 0.35 1.8 0.39 6.1 89.9 96.0
WR-117 Colado 1.32 8.8 1.50 9.1 105.2 114.3
Including 2.76 20.5 3.17 1.5 111.3 112.8
WR-118 Colado 0.59 1.4 0.62 7.6 7.6 15.2 147.8
WR-118 Colado 0.37 1.2 0.39 4.6 54.9 59.4
WR-118 Colado 0.56 5.3 0.67 41.1 71.6 112.8
Including 1.17 8.4 1.34 9.1 82.3 91.4
Including 2.40 17.5 2.75 1.5 89.9 91.4
WR-118 Colado 0.41 10.2 0.61 9.1 118.9 128.0
WR-119 Colado 0.72 6.1 0.84 22.9 35.1 57.9 134.1
WR-119 Colado 0.57 5.6 0.68 7.6 80.8 88.4
WR-119 Colado 0.93 15.4 1.24 38.1 93.0 131.1
Including 2.21 7.5 2.36 3.0 108.2 111.3
WR-120 Colado 0.41 1.6 0.44 4.6 24.4 29.0 152.4
WR-120 Colado 1.07 10.0 1.27 59.4 70.1 129.5
Including 1.52 12.9 1.78 22.9 93.0 115.8
Including 3.39 7.8 3.55 3.0 102.1 105.2
WR-121 Colado NSA 135.6
(1) AuEq is gold equivalent calculated using Ag:Au ratio of 50:1
(2) Drillhole Interval is not true thickness
NSA = No significant results

The Gap target area is located between the Section Line and Colado resource areas, within the two Whittle pits located one kilometre apart. Drill holes WR-116 and WR 122 completed at Gap suggest a connection and continuity between the two resource areas. Drillhole WR-116 encountered three stratabound mineral zones correlative with the upper mineralized zones at Section Line, suggesting also the continuity of the main mineralized horizon located at the siltstone and claystone geologic contact. The upper and lower zone contains anomalous mineralization (0.11 g/t gold over 10.7 metres and 0.2 g/t gold over 12.2 metres). The middle zone started at 309.4 metres and consists of 4.6 metres grading 0.86 g/t gold and 9.3 g/t silver. A new geothermal area was also discovered by drillhole WR-116.

Drillhole WR-122 indicated the southwest continuity of the Colado resource into the Gap area. WR-122 penetrated an almost continuous zone of anomalous gold mineralization (>0.1 g/t gold), and encountered two zones containing high-grade gold and silver. The zone started at 103.6 metres and returned 1.82 g/t gold and 22.2 g/t silver over 15.2 metres including two three metre zones with 2.89 g/t gold and 37.2 g/t silver and 5.06 g/t gold and 35.3 g/t silver starting at 103.6 metres and 115.8 metres respectively. This promising mineralization is open toward southwest and warrants more drilling in the Gap target..

Table 2 summarizes significant result for RC drill holes WR-116 and WR-122 using a 0.3 g/t gold cutoff for intervals greater than 3 metres.

Table 2: Wilco Project - Gap Target, 2014 Drilling Results (cut off 0.3g/t)
Drillhole Target Au g/t Ag g/t AuEq (1)g/t Drillhole interval (2)metres From metres To metres Total Depth (m)
WR-116 Gap 0.86 9.3 1.05 4.6 309.4 313.9 361.2
WR-122 Gap 0.44 25.9 0.96 4.6 97.5 102.1 144.8
WR-122 Gap 1.82 22.2 2.26 15.2 103.6 118.9
Including 2.89 37.2 3.63 3.0 103.6 106.7
Including 5.06 35.3 5.77 3.0 115.8 118.9
WR-122 Gap 0.34 8.0 0.50 4.6 123.4 128.0
(1) AuEq is gold equivalent calculated using Ag:Au ratio of 50:1
(2) Drillhole Interval is not true thickness
NSA = No significant results

The Rhyolite Hill target is located north of the historical Willard pit and was preliminary tested with six drill holes totaling 1,015 metres. Two of these drillholes completed in the EW Draw pit (WR-123 and WR-124), extended gold 46 metres toward the west. The high-grade is visually oxidised and looks similar to gold mineralization encountered at a shallow depth (45 m) under the pit floor. Drillhole WR-124 intersected a high-grade zone containing 18.3 metres containing 1.41 g/t Au. This mineralization is open toward north and west of the pit.

Drillholes WR-112 to WR-115 were designed to intercept the down deep extend of an area of strongly silicified and mineralized rhyolite, containing between 2.1g/t Au and 7.46 g/t Au and 1.1g/t Ag and 31g/t Ag. This surface mineralization was initially interpreted as associated with a west dipping high-angle feeder fault, located at the western margin of the exposed rhyolite dome. None of the drillholes intercepted the rhyolite complex but intersected locally anomalous gold, with two intervals ranging between 0.15 g/t Au and 0.31 g/t Au over 3 metres. Based on the results of this drilling the outcropping mineralization was reinterpreted as a low angle east dipping structural zone, located at the base of the rhyolite dome complex. A new drilling program will be design to test the volcanic dome and attempt to reconcile the 2.1 g/t Au and 7.46 g/t Au surface anomaly.

Table 3 summarizes significant result for RC drill holes WR-112 to WR-115, WR-123 and WR-124 using a 0.3 g/t gold cutoff for intervals greater than 3 metres.

Table 3: Wilco Project - Rhyolite Target, 2014 Drilling Results (cut off 0.3g/t)
Drillhole Target Au g/t Ag g/t AuEq (1)g/t Drillhole interval (2)metres From metres To metres Total Depth (m)
WR-112 Rhyolite NSA 214.9
WR-113 Rhyolite NSA 141.7
WR-114 Rhyolite NSA 155.4
WR-115 Rhyolite NSA 152.4
WR-123 Rhyolite 0.81 5.8 0.93 6.1 42.7 48.8 91.4
WR-123 Rhyolite 1.76 6.2 1.88 12.2 56.4 68.6
WR-124 Rhyolite 0.90 8.0 1.06 36.6 77.7 114.3 114.3
Including 1.41 7.3 1.56 18.3 86.9 105.2
(1) AuEq is gold equivalent calculated using Ag:Au ratio of 50:1
(2) Drillhole Interval is not true thickness
NSA = No significant results

"The Company is excited and pleased with the results of the Wilco drill program. The discovery of high-grade zones in the three target areas selected for drilling shows the property has additional upside potential and can continue to add value for our shareholders. The Company plans to follow up on these tremendous assay results and permitting is underway," stated Mr. William C. (Bill) Howald, President and CEO of the Company.

Rye Patch Gold US Inc. maintains a strict quality control program at all of its projects. All reverse circulation drill samples are submitted to American Assay with prep-blanks, assay blanks, and gold and silver standards. Rye Patch Gold inserts approximately one quality control or quality assurance samples for every ten samples submitted to the assay laboratory. The reverse circulation character samples are logged and photographed on site. American Assay collects the samples and transports them to their preparation and analytical facility located in Reno, Nevada. Gold analyses are conducted on 1-assay ton prepped samples with gold determined using industry standard fire assay methods with an ICP finish. Gold values above 10 g/t gold (over limits) are confirmed using fire assay with a gravimetric finish. Silver is analyzed using a two-acid digestion and an ICP finish. Silver values are re-analyzed with a four-acid digestion and ICP finish on all samples with gold values greater than a 0.2 g/t gold assay result. Silver values over 100 g/t silver are re-analyzed using volumetric dissolution.

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

About Rye Patch Gold Corp.

Rye Patch Gold Corp. is a Tier 1, well-funded junior mining company with a royalty revenue stream from the operating Rochester silver mine and significant gold and silver resources, all located 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. controls over 75 square kilometres (30 sq. miles) of land, and has a 3.4 % Net Smelter Return (NSR) royalty from the Rochester silver mine along the Oreana trend located in west-central Nevada. The Company is aggressively developing gold and silver resources along this emerging trend, utilizing existing funds and cash flow from the NSR royalty, which is fully leveraged to the price of gold and silver. In east central Nevada, Rye Patch Gold US Inc. is exploring 66 square kilometres of exploration land along the prolific Cortez trend contiguous to Barrick's new Goldrush deposit. 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

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 financial position of Rye Patch; the timing and content of work programs; the results of exploration activities and development of mineral properties; the interpretation of drilling results and other geological data; the reliability of calculation of mineral resources (and, in respect of the Coeur Rochester mine 3.4% NSR, the reliability of calculation of Coeur's mineral resources and reserves); the reliability of calculation of precious metal recoveries; the 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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