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

Rye Patch Gold Corp.

January 12, 2011 09:00 ET

Rye Patch Gold Drills New Gold and Silver Zone on Lincoln Hill

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 12, 2011) - Rye Patch Gold Corp. (TSX VENTURE:RPM)(OTCBB:RPMGF) ("Rye Patch" or the "Company") reports results of the 2010 fall drilling campaign on its 100% controlled Lincoln Hill project.

HIGHLIGHTS:

  • Drilling discovers new gold and silver zone (Jefferson) 350 metres west of the main Lincoln Hill resource area;
  • Results show significant gold and strong silver assays located along a one kilometer strike length with values from LR-058 grading 1.6 g/t Aueq over 9.1 metres and LR-059 grading 1.3 g/t Aueq over 13.1 metres;
  • A geophysical survey shows the Jefferson zone has a strike potential of 1.5 kilometres and indicates additional parallel zones; and
  • Drilling on the Lincoln Hill resource expands gold and silver mineralization to the northwest and south and confirms the resource has expansion potential in northwest and southeast directions (i.e. the resource is still open).

The 2010 Lincoln Hill drilling program had two main objectives. The first goal tested the open directions of the gold and silver resource area defined in June 2010. Drilling to the northwest, southeast, and south was designed to test these open mineralized directions. Although LR-050 expanded the resource to the south, LR-048 and LR-049 define the southern boundary of the Lincoln Hill resource; however, gold and silver expansion potential remains open toward the northwest and southeast along the main Lincoln Hill dyke trend. LR-053 and LR-054 returned significant gold values and expand the Lincoln Hill resource. LR-053 returned 1.54 g/t gold over 29.0 metres including 22.6 g/t gold over 1.5 metres. Additional drilling on the Lincoln Hill resource is in the planning stages.

The second goal was to test outlying geologic and geophysical targets on the property. A new zone, Jefferson, was initially identified through a ground based magnetic geophysical survey. The Jefferson corresponds to a strong magnetic high defined in the geophysical survey. The geophysical signature is traceable for over 1.5 kilometres and is parallel to the main Lincoln Hill resource. The geophysical survey, which completed over the entire Lincoln Hill property, shows additional dyke systems crossing the Lincoln Hill property.

Drillholes LR-051, LR-055, LR-056, and LR-058 to LR-060 tested a portion of the geophysical anomaly and returned encouraging gold and silver values. The widely spaced drilling cut gold and silver along the Jefferson zone for approximately one kilometer. LR-058 intersected 1.6 g/t Aueq over 9.1 meters including a 1.5 metre interval returning 85.7 g/t silver. In LR-059, an interval yielded 1.3 g/t Aueq over a 13.7 meters interval. The Jefferson zone has elevated silver values. Drillhole LR-056 returned 164 g/t silver over 3.0 metres. Additional drilling is warranted. The zone has significant expansion potential for a second resource area similar to the main Lincoln Hill resource.

William C. (Bill) Howald, the Company's President and CEO, commented, "We are extremely pleased with the outcome of the 2010 drilling program on our 100% controlled Lincoln Hill property. The drilling shows the property has good upside and expansion potential."

Rye Patch completed 15 drillholes totaling 2,403 metres using a reverse circulation drill rig. The significant gold and silver assays are summarized in Table 1 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)). A follow-up program is being designed to address the new Jefferson discovery.

Lincoln Hill Project - 2010 Drilling Results >0.5 g/t Aueq
          Drillhole     Total
    Au Ag Aueq. interval From To Depth
Drillhole Area g/t g/t g/t metres metres metres metres
LR-046 Washington 0.33 19.4 0.7 1.5 64.0 65.5 152.4
LR-046 Washington NSA 54.7 1.1 1.5 83.8 85.3
LR-046 Washington NSA 39.4 0.8 3.0 115.8 118.9
LR-046 Washington 0.16 33.1 0.8 1.5 125.0 126.5
LR-047 Washington 0.09 54.9 1.2 7.6 88.4 96.0 164.6
LR-050 Lincoln Hill 0.12 42.3 1.0 10.7 64.0 74.7 228.6
Including 0.21 72.5 1.7 3.1 70.1 73.2
LR-051 Jefferson 0.26 21.2 0.7 9.1 146.3 155.4 182.9
LR-052 Washington Drillhole lost at 111 meters 111.0
LR-053 Lincoln Hill 1.54 3.9 1.6 29.0 24.4 53.3 121.9
Including 22.60 8.2 22.8 1.5 24.4 25.9
Including 3.43 11.7 3.7 1.5 51.8 53.3
LR-053 Lincoln Hill 3.77 3.5 3.8 12.2 100.6 112.8
Including 9.44 3.4 9.5 4.6 100.6 105.2
LR-054 Lincoln Hill 1.23 7.7 1.4 9.1 99.1 108.2 152.4
Including 1.87 16.3 2.2 3.0 99.1 102.1
LR-055 Jefferson 0.35 10.2 0.6 12.2 199.6 211.8 249.9
LR-056 Jefferson 0.72 164.0 4.0 3.0 201.2 204.2 213.4
LR-058 Jefferson 1.02 28.2 1.6 9.1 12.2 21.3 152.4
Including 3.70 85.7 5.4 1.5 18.3 19.8
LR-058  Jefferson  2.90  8.9  3.1  3.0  96.0  99.1
Including   4.65  14.0  4.9  1.5  96.0  97.5
LR-058 Jefferson 2.99 4.2 3.1 3.1 147.8 150.9
Including 4.55 4.5 4.6 1.5 147.8 149.4
LR-059 Jefferson 1.10 8.4 1.3 13.7 10.7 24.4 100.6
Including 5.46 11.2 5.7 1.5 12.2 13.7
LR-060 Jefferson Drillhole lost at 38.1 metres 38.10

Drillholes LR-051 and LR-052 were drilled at the intersection of the Jefferson and Washington structurals. LR-051 returned significant silver values with 21.2 g/t silver over 9.1 meters. Intense pervasive silica alteration was encountered in LR-052 and caused poor drilling conditions. The drillhole was lost before reaching its designed target depth.

Drillholes LR-046 and LR-047 tested the extension of the Washington zone. Low gold and silver grades were encountered in the drilling. The assay outcome indicates the Washington zone has a discrete elevation controlling the mineralization.

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)
              Contained
      Gold Silver Contained Contained Au & Au
  Resource Tonnes Grade Grade Gold Silver Equivalent
Property Category (X 1,000) (g/t) (g/t) Ounces Ounces 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 on site 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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