Rye Patch Gold Corp.
TSX VENTURE : RPM
OTC Bulletin Board : RPMGF

Rye Patch Gold Corp.

October 04, 2010 09:00 ET

Rye Patch Gold Acquires Cortez Trend Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 4, 2010) - Rye Patch Gold Corp. (TSX VENTURE:RPM)(OTCBB:RPMGF) ("Rye Patch" or the "Company") announces it has acquired the Garden Gate Pass project located 12 kilometres (7 miles) south-southeast of Barrick Gold's Cortez Hills mine. The project consists of 153 unpatented lode claims acquired from a local prospecting company – Pyramid Lake LLC. Rye Patch controls 100% of the property subject to annual advance royalty payments and a 2% retained net smelter return (NSR).

Geographically, the Garden Gate Pass project is surrounded by gold mines. Barrick Gold's Cortez Hills deposit is located 12 kilometres to the north-northwest, and their ET Blue and Red Hills discoveries are located to the north - roughly 4 kilometres and 7 kilometres respectively. US Gold's Tonkin Springs mine is a mere 15 kilometres to the south.

William Howald, President and CEO commented, "Rye Patch is focused on acquiring projects with a potential for resource delineation to increase its resource inventory. The Company has been successful in acquiring projects that can quickly add gold and silver resources to our inventory along the Oreana trend. The geologic setting, location along the Cortez trend, and our geologic expertise has encouraged us to acquire the Garden Gate Pass project. We have some exceptional geologic ideas and hands-on experience that gives us confidence that can quickly advance the Garden Gate Pass project to the next exploration stage."

The project contains a pediment covered area that has lower plate carbonate lithologies beneath the gravel cover. Historic data shows the prospective lower plate is within 200 metres of the surface on the eastern side of the property. The main target lies in the west central portion of the project along a major northwest trending segment of the Cortez trend. This portion of the Cortez trend is controlled by a northwest striking anticline which marks the geologic position of the gold controlling structures. This geologic segment contains the original Cortez deposits and the new Cortez Hills mine. The Rye Patch geologic staff considers the target to be one of the best exploration plays along the Cortez trend for a Pipeline or Cortez Hills discovery analog.

Rye Patch is planning detailed aeromagnetic and gravity geophysical surveys to map the lower plate stratigraphy. Drilling on the property could start in spring of 2011.

Rye Patch Gold acquired the Garden Gate Pass property from Pyramid Lake LLC. The terms of the Lease Agreement are advance royalty payments starting at $40,000 as an up-front payment, $50,000 on the first anniversary, $55,000 on the second anniversary, $60,000 on the third through seventh anniversaries, and $100,000 starting on the eighth anniversary and thereafter. Pyramid Lake retains a 2% NSR royalty. All amounts are in US dollars.

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 ResourceCategory 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 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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