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

Rye Patch Gold Corp.

February 08, 2011 09:00 ET

Rye Patch Gold Drills Thick Zones of Gold and Silver at Gold Ridge

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 8, 2011) - Rye Patch Gold Corp. (TSX VENTURE:RPM)(OTCBB:RPMGF) ("Rye Patch" or the "Company") reports final results from the 2010 drilling campaign on its 100% owned Gold Ridge project.

HIGHLIGHTS:

  • Scout drilling confirms gold and silver assays along a 2.0 kilometre zone at the Silver Ridge target;
  • All Silver Ridge drillholes intersected reportable gold and silver assay intervals;
  • Red Hill drilling cut thick gold and silver intervals along altered dike system with intense alteration; and
  • Drillhole results show Silver Ridge and Red Hill are potential new discoveries along the Oreana trend.

The drill program tested two targets within 2,160 hectare Gold Ridge property. A total of 1,772 meters of reverse circulation drilling was completed in thirteen drillholes before safety concerns associated with winter storms stopped the program. At Silver Ridge, three of ten drillholes were finished while at the Red Hill target ten drillholes were completed. Table 1 summarizes the significant gold and silver assays from all drilling at the Silver Ridge target using a 0.20 g/t Aueq cut off grade, where Aueq equals the gold assays plus silver assay divided by 50 (Aueq = Au + (Ag/50)).

Table 1: Gold Ridge Project - Silver Ridge Target
Drillhole Target Area Au Ag Aueq Drillhole interval From To Total Depth
    g/t g/t g/t metre metre metre Metre
GR-001 Silver Ridge 0.25 4.8 0.35 6.1 68.6 74.7 152.4
GR-001 Silver Ridge 0.19 6.6 0.32 6.1 79.2 85.3
GR-002 Silver Ridge 0.28 9.0 0.46 39.6 54.9 94.5 114.3
Including 0.98 18.5 1.35 3.0 91.4 94.5
GR-003 Silver Ridge 0.01 60.1 1.20 1.5 211.8 213.4 221.0

At the Silver Ridge target, the drilling program successfully intersected significant thicknesses of gold and silver mineralization in the northern portion of the target. Gold and silver mineralization was first identified in outcropping quartz vein alteration zones located on the east flank of a gently dipping anticline. Anomalous gold (10ppb to 300 ppb gold) and silver (1ppm to 238 ppm silver) were reported in surface rock-chip samples. Drillhole GR-002 targeted the core of the altered anticline and intersected a silicified and quartz-veined zone starting at a depth of 56.4 metres. The newly identified zone contains a significant thickness of gold and silver - 0.28 g/t gold and 9 g/t silver over 39.6 metres including a three metre intercept grading 0.98 g/t gold and 18.5 g/t silver. The significance of this intercept is the thickness of alteration and mineralization within the axial zone of the anticline suggesting a strong metal system is present. The anticline is oriented north to south and has been mapped for two kilometres.

GR-001, located 1.7 kilometres south of GR-002, intersected mineralization in a parallel quartz vein alteration zone outside of the main anticline axis. Drillhole GR-003 targeted a quartz vein altered fault zone on the east side of the Silver ridge anticline. Significant silver was encountered in the fault zone - 60.1 g/t silver from a 1.5 metre zone. Only drillhole GR-002 tested the anticline target.

The initial test of the Silver Ridge target shows potential for another significant mineralized zone along the Oreana trend. A re-start of the originally planned program will commence once snow and safety concerns are mitigated. Future fieldwork will include drilling, mapping, lithogeochemistry and ground-based geophysics to better define the anticline target toward the south.

On the Red Hill target, a total of ten widely spaced drillholes were completed in the surface rock-chip and soil anomaly. The drilling pattern covered an area measuring 800 metres long by 500 metres wide. The drilling targeted a 20-metre thick hydrothermal breccia zone and an area of flat lying silicified and altered sediments. Table 2 summarizes the significant gold and silver assays from drillholes in the Red Hill target using a 0.20 g/t Aueq cut off grade, where Aueq equals the gold assays plus silver assay divided by 50 (Aueq = Au + (Ag/50)).

Table 2: Gold Ridge Project - Red Hill Target
Drillhole Target Area Au Ag Aueq Drillhole interval From To Total Depth
    g/t g/t g/t metre metre metre Metre
RH-001 Red Hill 0.31 7.1 0.45 29.0 3.0 32.0 129.5
RH-006 Red Hill 0.20 2.8 0.26 18.3 18.3 36.6 121.9

Based on the results of the drilling, a new interpretation of the mineralized zone is developing. Drillholes RH-001 and RH-006 returned significant thicknesses of gold and silver mineralization, 29 metres and 18.3 metres respectively, and were drilled adjacent to a mafic dike and intense silicification. The thick, near-surface intercepts suggest a strong mineral system with mafic dikes and silicification controlling gold and silver. A drill program targeting the dikes is being designed.

William C. (Bill) Howald, the Company's President and CEO stated, "We are pleased with the results of this first-pass scout drilling program on two of the targets at our 100% owned Gold Ridge property. The program shows significant thicknesses of gold and silver located within favorable geologic traps. Our goal with the next phase of drilling will be to target the higher-grade heart of each gold-silver system. The Gold Ridge project has several other targets that will be addressed in future drill programs; however, the Silver Ridge and Red Hill are already bearing fruit."

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 3 summarizes Rye Patch Gold's precious metal inventory in Nevada, USA.

Table 3: 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 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 Howald'
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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