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

Rye Patch Gold Corp.

May 09, 2011 08:28 ET

Rye Patch Gold Extends North Basin High-Grade Zone at Wilco

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 9, 2011) -Rye Patch Gold Corp. (TSX VENTURE:RPM)(OTCQX:RPMGF) ("Rye Patch" or the "Company") announces additional assay results from the Company's 100% controlled Wilco project along the emerging Oreana gold and silver trend located in Nevada.

HIGHLIGHTS

  • High-grade gold was successfully intersected in WRC-013 returning 1.4 metres of 16.4 g/t gold extending the North Basin high-grade gold and silver zone to over 400 metres in length;
  • WRC-012 yielded positive results northwest of WRC-007 (31.75 g/t gold and 106.3 g/t silver over 2.1 metres starting at 85 metres) along the western edge of Section Line resource;
  • The North Basin high-grade zone is open to the west and northwest;
  • WRC-006 and WRC-009 show a secondary northwest alignment of the high-grade gold and silver mineralization, drilling is testing this hypothesis; and
  • Results for WRC-016 through WRC-018 are pending at this time.

William C. (Bill) Howald, the Company's President and CEO, stated, "The North Basin drill results continue the successful delineation of the high-grade gold and silver zone. We are very pleased with the assay grade and thickness of mineralization being reported from the North Basin drillholes, and Management believes the North Basin zone could add gold and silver ounces to the Section Line resource."

Drillholes WRC-010, WRC-011, WRC-013, WRC-014 and WRC-015 tested extensions of the high-grade North Basin gold and silver mineralization to the west. High-grade gold was successfully intersected in WRC-011 and WRC-013. Drillholes WRC-014 encountered the continuation of the North Basin alteration and mineralization albeit at a lower grade. The intercepts in WRC-011 and WRC-009 show the North Basin mineralization has a width of 50 metres, and a strike length of 400 meters along an east-northeast trend. WRC-010 deflected from its designed trajectory and passed above the high-grade zone. WRC-015 was drilled below WRC-010 and encountered alteration with moderate grades.

Follow up on the Section Line resource was tested by WRC-012, to the northwest of WRC-007, which intersected 31.75 g/t gold and 106.3 g/t silver over 2.1 metres starting at 85 metres. WRC-007 encountered 4.28 g/t gold over 2.8 meters at the same stratigraphic position.

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
Drillhole
intervalTotal
DrillholeRemarksAuAgAueqmetresFromToDepth
g/tg/tg/t(1)metresmetresmetres
WRC-010North Basin0.4092.1000.4514.657.959.4384.0
WRC-010North Basin0.4163.9000.49411.098.8109.7
WRC-010North Basin0.4983.8000.5747.6210.3217.9
WRC-011North Basin0.4074.6000.4996.176.282.3403.1
WRC-011North Basin0.4324.6000.52413.494.5107.8
WRC-011North Basin1.6055.4001.7133.0114.9115.8
WRC-011North Basin2.25010.2002.4546.1356.6362.7
including3.84814.2004.1323.1358.1361.2
WRC-012Section Line1.70428.4002.27211.3101.5112.8305.8
including4.28174.6005.7732.8102.9104.3
WRC-012Section Line0.5944.2000.67812.2137.2149.4
WRC-012Section Line2.25031.9002.88812.0245.4257.4
including7.04092.1008.8821.8249.9251.7
WRC-012Section Line1.9237.6002.07510.0264.4274.3
WRC-012Section Line1.8004.9001.8984.0287.4291.4
WRC-013North Basin0.3631.4000.3914.6108.2112.8442.3
WRC-013North Basin0.5253.6000.5979.4387.1396.5
WRC-013North Basin6.2186.3006.3444.8418.9423.7
including16.40014.90016.6981.4421.0422.4
WRC-014North Basin0.4281.3000.4543.0105.2108.2407.4
WRC-014North Basin2.2216.9002.3594.1344.4348.5
WRC-015North Basin1.9954.4002.0833.157.961.0374.3
WRC-015North Basin0.4793.8000.5552.774.777.4
WRC-015North Basin0.3874.2000.4714.396.3100.6
WRC-015North Basin0.4572.4000.5052.5105.8108.3
WRC-015North Basin0.9677.8001.12312.2338.3350.5
including1.1028.9001.2809.1339.9349.0
(1) TRUE THICKNESS UNKNOWN

Alignment of the intercepts in WRC-006 and WRC-009 provides a possible 330-degree, northwest orientation, to the gold mineralization. A drillhole to test this possible hypothesis is currently in progress.

Since the news release dated March 2, 2011, six more core holes totaling 2,317 metres have been completed. Four core holes tested the extension of the North Basin high-grade gold and silver zone, and one drillhole followed up on high-grade intersected at the western edge of the Section Line resource. To date, a total of 4,095 metres have been completed in 11 core holes as part of the 2011, Wilco core program. At this time, assays for WRC-016 and WRC-017 are pending, and drillhole WRC-018 is in progress.

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)
Contained
Gold &
GoldSilverContainedContainedGold
ResourceTonnesGradeGradeGoldSilverEquivalent
PropertyCategory(X 1,000)(g/t)(g/t)OuncesOuncesOunces (4)
Wilco (2)Measured7,5260.694.595164,0001,111,000186,220
Indicated30,8440.513.601522,0003,638,000594,760
Inferred121,8380.415.0751,660,00019,871,0002,057,420
Jessup(2)Measured7,7750.518.745128,0002,184,000171,680
Indicated12,6420.417.167172,0002,906,000230,120
Inferred4,4940.557.92277,0001,146,00099,920
Lincoln Hill(3)Measured------
Indicated------
Inferred17,2150.6917.143380,0009,488,000569,760
Total Measured & Indicated Resources986,0009,839,0001,182,780
Total Inferred Resources2,117,00030,505,0002,727,100
(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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