Rye Patch Gold Corp.
OTC Bulletin Board : RPMGF

Rye Patch Gold Corp.

January 19, 2011 09:01 ET

Rye Patch Expands on New Lincoln Hill Gold and Silver Zone

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 19, 2011) - Rye Patch Gold Corp. (TSX VENTURE:RPM)(OTCBB:RPMGF) ("Rye Patch" or the "Company") explains the geologic and resource potential of the recently identified Jefferson zone at Lincoln Hill. As announced on January 12, 2011, the Company identified a new gold and silver zone on the Lincoln Hill property. The Jefferson zone's geophysical signature can be traced for 1.5 kilometres. As reported on January 12th, drilling along a one-kilometer section of the Jefferson zone returned significant gold and silver assays associated with a northwest oriented dyke system.

The Jefferson zone has similar geologic characteristics to the Lincoln Hill resource. Within the Lincoln Hill resource, gold and silver is associated with a northwest oriented high-angle dyke system. Where the dykes cross cut receptive rhyolite units, the mineralization is flat lying. The flat lying strataform zone helps to build tonnes within the resource area, and is where the bulk of the gold and silver reside. The rhyolite beds are folded with fold axis oriented to the northeast. At the intersection of the receptive rhyolite unit, the dike, and the fold axis, high-grade gold and silver have been drilled. An example of this style of mineralization was encountered in RC drillhole LR-013 which returned 27.2 g/t gold and 34 g/t silver over 21.3 metres starting at 23 metres, and core hole, LRC-002, returned 21.19 g/t gold over 7.0 metres starting at 25.3 metres. The new Jefferson zone has similar potential within the receptive rhyolite lithologies. A program to test the flat-lying rhyolite zones is being designed.

The ore controls and lithologies within the new Jefferson zone are similar to the main Lincoln Hill resource. The strike length of the Jefferson zone dyke system as known today, is twice the length of the Lincoln Hill resource area. Significant expansion and upside potential exists along the Jefferson zone, and additional work is underway to capitalize on this newly identified gold and silver zone.

"The strike length of the Jefferson mineralized zone is twice as long as the known Lincoln Hill resource. The potential for the flat-lying rhyolite zone could allow the Jefferson zone to build tonnes as seen in the Lincoln Hill resource. The team is designing a drill program to test the extent of the Jefferson zone as well as target the potential flat-lying zones. Further synthesis of the geophysical data may indicate additional dyke systems and drill targets", stated William C. (Bill) Howald, the Company's President and CEO.

On January 12th, Rye Patch reported results of the Lincoln Hill drill program. The Company completed 15 drillholes totaling 2,403 metres using a reverse circulation drill rig. The significant gold and silver assays were summarized using a 0.5 g/t gold and gold equivalent (Aueq) assay cut off where Aueq equals the gold assay plus the silver assay divided by 50 (Aueq. = Au + (Ag/50)). The successful program identified the Jefferson zone, and a follow-up program is being designed to address the new discovery.

As announced on May 18, 2010, May 11, 2009, and June 2, 2009 in respect of the Lincoln Hill, Wilco, and Jessup projects, Rye Patch Gold's resource inventory now totals 1,182,780 ounces of gold and gold equivalent in the measured and indicated category plus 2,727,100 ounces of gold and gold equivalent in the inferred category. The following table summarizes Rye Patch Gold's precious metal inventory in Nevada, USA.

Rye Patch Gold's NI43-101 Resource Inventory(1)
Property Resource Category Tonnes (X 1,000) Gold Grade (g/t) Silver Grade (g/t) Contained Gold Ounces Contained Silver Ounces Contained Au & Au Equivalent Ounces(4)
Wilco(2) Measured 7,526 0.69 4.595 164,000 1,111,000 186,220
Indicated 30,844 0.51 3.601 522,000 3,638,000 594,760
Inferred 121,838 0.41 5.075 1,660,000 19,871,000 2,057,420
Jessup(2) Measured 7,775 0.51 8.745 128,000 2,184,000 171,680
Indicated 12,642 0.41 7.167 172,000 2,906,000 230,120
Inferred 4,494 0.55 7.922 77,000 1,146,000 99,920
Lincoln Hill(3) Measured - - - - - -
Indicated - - - - - -
Inferred 17,215 0.69 17.143 380,000 9,488,000 569,760
Total Measured & Indicated Resources 986,000 9,839,000 1,182,780
Total Inferred Resources 2,117,000 30,505,000 2,727,100
(1) All resources on 100% basis. Metallurgical recoveries and net smelter returns are assumed to be 100%. Conforms to 43-101 resource definitions;
(2) Cutoff grade for Wilco Measured and Indicated resource is reported at 0.2 g/t Au for oxide mineralisation and 1.45 g/t Au for sulphide mineralisation. The Inferred resource cut-off grade is reported at 0.2 g/t Au for oxide, sulphide and carbonaceous ore types; however, a higher opt Au cut-off grade may be required to upgrade the inferred resource to the measured and indicated resource category. Cut-off grade for Jessup is reported at 0.2 g/t Au for oxide mineralisation and 0.34 g/t Au for transition and sulphide mineralisation; and
(3) The Inferred resource is reported at a cut-off grade of 0.34 g/t (0.01 opt) Aueq for oxide and transitional ore types;
(4) Wilco, Jessup and Lincoln Hill resources includes Au equivalent ounces (Aueq.); where Aueq. = (Au ozs) + (Ag ozs X $Ag/oz)/$Au/oz, for Au/oz = $900, and Ag/oz = $18.

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 verified the information contained in, and has reviewed and approved the contents of, this news release.

Rye Patch Gold Corp. is exploring well-known mineral trends in Nevada - the world's fourth-richest gold region. Starting with 150,000 inferred ounces of gold in mid-2007, this well-funded Company now has 1.2-million ounces of gold and gold equivalent in the measured and indicated category, plus 2.7-million ounces of gold and gold equivalent in the inferred category. Rye Patch Gold 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 Gold is developing its primary assets – the advanced-stage Wilco, Lincoln Hill, Jessup, and Gold Ridge projects located along the emerging Oreana gold trend in west-central 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 Gold, 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 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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