Rye Patch Gold Corp.
TSX VENTURE : RPM
OTCQX : RPMGF

Rye Patch Gold Corp.

October 03, 2011 09:00 ET

Rye Patch Finds New High-Grade Gold and Silver Zones at Lincoln Hill

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 3, 2011) - Rye Patch Gold Corp. (TSX VENTURE:RPM)(OTCQX:RPMGF) ("Rye Patch" or the "Company") announces the results of a soil geochemical sampling program. The survey identified two new target zones (Roosevelt and North Anomaly) and extends the Washington zone on the Company's 100% owned and controlled Lincoln Hill project.

HIGHLIGHTS:

  • 34.79 g/t Au and 779 g/t Ag; 14 g/t Au and 183 g/t Ag; 97.92 g/t Au and 1527 g/t Ag; and 97.5 g/t Au and 1303 g/t Ag along a high-grade structural trend associated with the new Roosevelt target;
  • Quartz stockwork zone, geologically similar to the Lincoln Hill resource area, found in the new North Anomaly target; and
  • Gold-in-soil shows the Washington zone extends 500 metres to the northeast.

A total of 1,600 soil samples were collected for a soil geochemical survey on the Lincoln Hill property. The survey identified two new targets and extended the Washington zone 500 metres to the northeast. A follow-up rock-chip sampling program was completed over the newly identified Roosevelt target. The Roosevelt target has dimensions of 400-metres by 50-metres with gold-in-soil values ranging from 25 ppb to 200 ppb. The Roosevelt zone is located 500 metres southeast of Lincoln Hill resource area, and has a north-south orientation dipping 30 degrees to the west. The south end of the anomaly is covered by thick colluvium.

Upon field checking the Roosevelt zone, several old workings were identified. The historic mines are within a silicified rhyolite overlying intensely oxidised andesite. Grab rock-chip samples returned high-grade gold and silver values from this zone up to 34.79 g/t Au and 779 g/t Ag, 14 g/t Au and 183 g/t Ag, 97.92 g/t Au and 1527 g/t Ag and 97.5 g/t Au and 1303 g/t Ag along the rhyolite/andesite contact. A lower grade gold halo in the surrounding altered rhyolite returned gold values ranging from 0.11 g/t gold to 2.77g/t gold.

Additional mapping and sampling are required to fully understand the Roosevelt zone before drilling can begin.

At the North Anomaly, the second new zone, gold-in-soil values greater than 25 ppb define a zone 300-metres by 250-metres in dimension. The soil anomaly outlines a zone of stockwork quartz veining within altered rhyolite lithologies. Mapping shows the mineralization is associated with a mafic dike (lamprophyre dike). The newly identified target is located just north of High Grade canyon and has similar geologic characteristics to the Lincoln Hill resource. Additional work is required to follow up on the North Anomaly to assess its potential.

A soil grid along the strike extension of the Washington zone was completed and shows the zone extends 500 metres to the northeast under the colluvium. The soil anomaly has dimension of 500-metres by 100-metres as defined by the 25-ppb gold contour with a 150-metre long core defined by the 100-ppb gold contour. The Washington extension warrants immediate follow up.

"We are very pleased with the soil and rock-chip geochemical results at Lincoln Hill. The two newly identified gold zones and the extension of the Washington zone shows the upside potential of project remains high," stated William C. (Bill) Howald, the Company's President and CEO.

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 along the Oreana trend 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. Table 2 summarizes Rye Patch Gold's precious metal inventory in Nevada, USA.

Table 2: 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
Gold & Gold
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 Oreana Trend Measured & Indicated Resources 986,000 9,839,000 1,182,780
Total Oreana Trend 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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