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

Rye Patch Gold Corp.

March 02, 2011 09:00 ET

Rye Patch Gold Drills More High-Grade Gold at Wilco

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 2, 2011) - Rye Patch Gold Corp. (TSX VENTURE:RPM)(OTCBB:RPMGF) ("Rye Patch" or the "Company") is pleased to report additional assay results from the on-going 2011, core drilling campaign on the Company's 100% controlled Wilco project.

HIGHLIGHTS:

  • Core drilling expands the North Basin high-grade gold zone westward in WRC-009 with 12.734 g/t gold and 70.516 g/t silver over 8.4 metres within a thicker zone of mineralization;
  • WRC-007 cuts 36.5 metres grading 1.291 g/t gold and 7.251 g/t silver and extends the Section Line deposit westward;
  • High grades encountered in the upper zone of the Section Line deposit including 31.754 g/t gold and 106.3 g/t silver over 2.1 metres starting at 85 meters; and
  • Core drilling continues.

Rye Patch is releasing assay results from its on-going, core-drilling program located at the Wilco project. The five drillholes show that the gold and silver mineralization continues westward along the North Basin high-grade zone and along the anticline zone of the Section Line deposit. Drilling in the North Basin is moving west-southwest toward the Section Line deposit.

Five drillholes are now complete in the North Basin high-grade target. Assays are pending for WRC-010 and WRC-011; one drillhole, WRC-012, is in progress; and four more drillholes are planned. Gold and silver assays along with geology for drillholes WRC-005, WRC-006 and WRC-009 show continuity of the high grade gold along a west-southwest structural zone paralleling the northern margin of the Section Line gold deposit. The drilling has extended the high-grade zone 100 metres toward the west giving the zone dimensions of 100 metres by 300 metres; however, additional potential exists along a one-kilometre structural trend.

The structural zone has significant high-grade gold and silver within a larger halo of moderate gold grades. WRC-009 returned 37 metres grading 3.855 g/t gold and 31.811 g/t silver. Internal high-grade zones were encountered including one interval that returned 40.325 g/t gold and 175.879 g/t silver over 2.2 metres. The drilling shows gold and silver is associated with a multi-phase silica event that includes stockwork quartz veining and pervasive silica-cemented breccias within the altered siltstone rock package. A third type of alteration and mineralization is associated with decalcified siltstone. The alteration and mineralization are open to the west.

Table 1 summarizes the significant drillhole intervals with gold and silver assays using a 0.30 g/t gold cut off grade, and shows gold equivalent (Aueq) where Aueq equals the gold assay plus silver assay divided by 50 (Aueq = Au + (Ag/50)).

Table 1: Wilco Project - 2011 Core Drilling Program; WRC-005 to WRC-009
Drillhole Remarks Au
g/t
Ag
g/t
Aueq
g/t
Drillhole (1) interval
metres
From
metres
To
metres
Total Depth
metres
WRC-005 North Basin 0.366 2.621 0.418 16.8 80.7 97.5 377.3
WRC-005 North Basin 2.174 6.904 2.312 17.3 331.0 348.4
Including 3.400 9.781 3.596 10.6 337.7 348.4
Including 9.980 5.650 10.093 3.0 339.6 342.6
WRC-006 North Basin 0.340 2.627 0.393 25.9 82.3 108.2 361.7
WRC-006 North Basin 1.785 11.075 2.007 32.4 315.5 347.9
Including 5.124 22.517 5.574 7.1 329.4 336.4
Including 14.376 22.900 14.834 1.2 331.5 332.7
WRC-007 Section Line 31.754 106.300 33.880 2.1 85.0 87.2 323.5
WRC-007 Section Line 0.384 3.718 0.458 5.3 112.1 117.3
WRC-007 Section Line 0.726 8.325 0.893 17.6 181.5 199.2
WRC-007 Section Line 1.291 7.251 1.436 36.5 213.4 249.9
Including 1.529 9.065 1.710 27.4 213.4 240.8
WRC-008 Section Line 0.409 5.069 0.510 82.4 117.3 199.7 299.0
Including   1.346 17.737 1.701 2.3 139.3 141.6
Including   1.750 15.804 2.066 3.1 196.6 199.7
WRC-008 Section Line 1.362 6.880 1.500 31.2 225.6 256.7
Including 2.140 9.470 2.329 17.1 225.6 242.6
Including 3.987 10.930 4.206 5.9 231.5 237.4
WRC-009 North Basin 1.109 6.400 1.237 4.6 59.4 64.0 417.0
WRC-009 North Basin 0.381 4.254 0.466 6.2 79.2 85.5
WRC-009 North Basin 0.670 6.000 0.790 4.6 283.5 288.0
WRC-009 North Basin 3.855 31.811 4.492 37.0 329.8 366.8
Including 12.734 70.516 14.144 8.4 331.5 339.9
Including 40.325 175.879 43.843 2.2 331.5 333.8
Including 5.950 85.553 7.661 1.8 338.1 339.9
WRC-009 North Basin 0.552 1.242 0.577 11.2 391.7 402.9

 (1) TRUE THICKNESS UNKNOWN

Along the western margin of the Section Line deposit, drillholes WRC-007 and WRC-008 were completed. The drillholes intercepted significant mineralization starting at approximately 80 metres down the holes. WRC-007 cut 31.754 g/t gold and 106.3 g/t silver over a 2.1 metre interval starting at 85 metres and shows the deposit has high-grade potential within the upper mineralized zone. Multiple gold and silver zones ranging in thickness from 2 metres to 82 metres were encountered. In WRC-008, a zone 31.2 metres thick and grading 1.50 g/t Aueq was intersected starting at 225.6 metres down the drillhole. True thickness of the zones is not known at this time; however, the westerly expansion potential of the Section Line resource is evident.

William C. (Bill) Howald, the Company's President and CEO commented, "We are very pleased with the assay grade and thickness of mineralization being reported from the drillholes. Gold as well as silver assays are showing the significance of the North Basin structural zone, and drilling is extending the Section Line deposit to the west. The results show the Wilco project has gold grade and expansion potential. An upcoming drillhole will target the intersection of the North Basin high-grade zone and the anticline of the Section Line deposit. This area has potential for additional high grade gold and silver as well as expansion and grade potential for the resource."

Assay results for the lower mineralized zone encountered in WRC-005 and WRC-006 were originally released on January 25, 2011. These drillholes are reported again to show the upper mineralized zone that starts at approximately 80 metres down the hole. Drillholes WR-007, WRC-008, and WRC-009 also intersected the upper mineralized zone.

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. 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 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 maintains a strict quality control program at all of its projects. Drill samples are picked up by American Assay's 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 atomic absorption finish. Gold over limits are determined using fire assay with a gravimetric finish. Silver is analyzed using a four-acid digestion and an AA finish.

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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