Rye Patch Gold Corp.
TSX VENTURE : RPM
OTCQX : RPMGF
FRANKFURT : 5TN

Rye Patch Gold Corp.

July 10, 2012 09:00 ET

Rye Patch Intersects More Gold and Silver on the LH Claims

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 10, 2012) - Rye Patch Gold Corp (TSX VENTURE:RPM)(OTCQX:RPMGF)(FRANKFURT:5TN) (the "Company") announces the last round of assay results from the initial drilling program on the LH Claims at the Rochester project. Rye Patch Gold US Inc., the Company's wholly owned subsidiary, has completed a total of 52 reverse circulation drillholes for 11,054 metres (36,256 feet) in its phase-one drill campaign. This news release reports gold and silver assay results for RMR-033 to RMR-052 totalling 3,517 metres (11,535 feet). A May 29, 2012, news release reported the gold and silver assay results for the first 7,537 metres (24,721 feet).

HIGHLIGHTS:

  • Southeast of the Packard mine, RMR-042 intersected 190.5 metres grading 57.48 g/t Ageq starting from the surface. The zone has been extended to the west and south;
  • Drilling along the Packard haul road encountered a thick zone of low-grade gold and silver ponded beneath an interlayer of sediment. The sediment acts as a seal and could provide a trap for higher grade silver and gold; and
  • Rye Patch Gold US Inc. is planning a phase-two, follow-up drill campaign.

Rye Patch Gold US Inc. completed 52 reverse circulation drillholes totalling 11,054 metres (36,256 feet) on the LH claims (Rochester project). The phase-one drill program started in late January and finished in mid-June 2012.

Gold and silver values intersected in RMR-039, RMR-040, RMR-041, and RMR-042 along the southeast side of the Packard mine were extended to the south with drillholes RMR-044 and RMR-045 and to the west in drillholes RMR-047 to RMR-049. Drillhole RMR-041 cut 221 metres grading 13.76 g/t Ageq, and RMR-042 intersected 190.5 metres grading 57.48 g/t Ageq all starting at the surface. Additional drilling and follow up are warranted.

RMR-050, RMR-051, and RMR-052 returned gold and silver assays along the Packard haul road. RMR-050 intersected altered volcanic and sediments of the Weaver Rhyolite. Immediately below the sediments, the drillholes RMR-051 and RMR-052 encountered thick zones of low-grade gold and silver. The zone ranges in thickness between 110 metres and 130 metres. It appears the interlayered sediments act as a seal to the gold-silver hydrothermal system. Additional drilling is warranted and will be followed up in a phase-two drill program.

RMR-035, located in the Mystic area, was targeted on outcropping alteration identified through surface geologic mapping. The silicified zone measures 240 metres by 110 metres in outcrop. The drillhole was located on the southeast side of the alteration zone and intersected it at depth. Additional drilling along the northwest orientation of the zone is being planned.

Significant gold was encountered in three drillholes - RMR-039: 2.84 g/t Au; RMR-041: 8.34 g/t Au; RMR-042: 1.54 g/t Au - each over a 1.5 metre interval. The gold intercepts are on the southern side of the Packard mine and could indicate a high-grade gold vein system. Additional geologic work is required to understand the significance of the higher grades. Future drilling is planned for the area.

"The Company is very pleased with the results of the phase-one drilling campaign on the LH claims and consider it a success. Rye Patch Gold US Inc's drilling program confirms gold and silver that was identified and discovered last October and November is present on the surface and at depth on the LH claims. The drilling confirms several potential bulk-tonnage gold and silver zones that require immediate follow up and quantification," stated William C. Howald, President and CEO of Rye Patch Gold Corp.

For the phase-one Rochester drilling program, a cutoff grade of 5 g/t Ageq was used. The silver equivalent was calculated using the silver grade plus the gold grade times fifty. Table 1 summarizes the gold and silver assay results for RMR-033 to RMR-052.

Table 1: Phase-One LH Claim (Rochester) RC Drill Assay Results - RMR-033 to RMR-052
Hole ID Target Au
g/t
Ag
g/t
Aueq.
(1)
g/t
Ageq.
(1)
g/t
Drill-
hole
Inter-
val

metres
(2)
From
metres
To
metres
Total
Depth
Metres
RMR-033 Packard Mine 0.041 9.60 0.233 11.65 86.9 1.5 88.4 184.4
Including 0.308 8.80 0.484 24.20 1.5 9.1 10.7
Including 0.062 21.50 0.492 24.60 22.9 57.9 80.8
RMR-033 Packard Mine 0.076 3.30 0.142 7.10 9.1 111.3 120.4
RMR-033 Packard Mine 0.029 5.50 0.139 6.95 1.5 126.5 128.0
RMR-033 Packard Mine 0.016 5.00 0.116 5.80 1.5 132.6 134.1
RMR-033 Packard Mine 0.009 5.70 0.123 6.15 16.8 143.3 160.0
RMR-034 Packard Mine 0.018 4.40 0.106 5.30 19.8 4.6 24.4 187.5
RMR-034 Packard Mine 0.004 4.90 0.102 5.10 1.5 27.4 29.0
RMR-034 Packard Mine 0.012 4.90 0.110 5.50 47.2 50.3 97.5
Including 0.024 18.40 0.392 19.60 1.5 56.4 57.9
RMR-034 Packard Mine 0.025 11.20 0.249 12.45 1.5 108.2 109.7
RMR-034 Packard Mine 0.008 4.90 0.106 5.30 3.0 132.6 135.6
RMR-034 Packard Mine 0.015 4.80 0.111 5.55 6.1 146.3 152.4
RMR-034 Packard Mine 0.008 5.00 0.108 5.40 9.1 163.1 172.2
RMR-034 Packard Mine 0.009 4.80 0.105 5.25 7.6 178.3 185.9
RMR-035 Mystic 0.014 4.40 0.102 5.10 141.7 0.0 141.7 141.7
Including 0.009 22.35 0.456 22.80 3.0 83.8 86.9
Including 0.012 28.50 0.582 29.10 4.6 96.0 100.6
RMR-036 Packard Mine 0.007 4.90 0.105 5.25 1.5 36.6 38.1 160.0
RMR-036 Packard Mine 0.007 4.90 0.105 5.25 19.8 70.1 89.9
RMR-036 Packard Mine 0.029 6.30 0.155 7.75 1.5 158.5 160.0
RMR-037 Packard Mine 0.024 5.65 0.137 6.85 164.6 0.0 164.6 164.6
Including 0.086 29.78 0.682 34.08 16.8 54.9 71.6
RMR-038 Packard Mine 0.033 3.63 0.106 5.28 9.1 0.0 9.1 153.9
RMR-038 Packard Mine 0.010 4.57 0.101 5.07 25.9 27.4 53.3
RMR-038 Packard Mine 0.019 5.70 0.133 6.65 1.5 57.9 59.4
RMR-038 Packard Mine 0.002 6.10 0.124 6.20 1.5 106.7 108.2
RMR-038 Packard Mine 0.008 5.14 0.111 5.54 27.4 111.3 138.7
RMR-039 Packard Mine 0.061 13.96 0.340 17.01 208.8 0.0 208.8 208.8
Including 0.279 52.23 1.324 66.18 9.1 9.1 18.3
Including 0.832 114.36 3.119 155.96 7.6 83.8 91.4
Including 2.836 173.00 6.296 314.80 1.5 86.9 88.4
RMR-040 Packard Mine 0.020 5.08 0.122 6.08 178.3 0.0 178.3 178.3
Including 0.109 17.43 0.458 22.88 18.3 0.0 18.3
RMR-041 Packard Mine 0.105 8.51 0.275 13.76 221.0 0.0 221.0 221.0
Including 0.210 16.35 0.537 26.85 109.7 0.0 109.7
Including 0.349 90.10 2.151 107.55 3.0 21.3 24.4
Including 8.340 44.70 9.234 461.70 1.5 32.0 33.5
Including 0.819 42.40 1.667 83.35 24.4 15.2 39.6
RMR-042 Packard Mine 0.144 50.28 1.150 57.48 190.5 0.0 190.5 190.5
Including 0.317 289.45 6.106 305.30 25.9 54.9 80.8
Including 0.597 823.50 17.067 853.35 6.1 68.6 74.7
Including 1.535 1338.00 28.295 1414.75 1.5 71.6 73.2
RMR-043 Packard Mine NSV 202.7
RMR-044 Packard Mine 0.017 4.88 0.115 5.73 109.7 33.5 143.3 190.5
Including 0.049 29.36 0.636 31.81 7.6 61.0 68.6
Including 0.005 5.15 0.108 5.40 1.5 178.3 179.8
RMR-045 Packard Mine 0.017 4.50 0.107 5.35 4.6 42.7 47.2 160.0
RMR-046 Packard Mine 0.108 0.30 0.114 5.70 1.5 112.8 114.3 160.0
RMR-047 Packard Mine 0.009 4.92 0.107 5.37 44.2 103.6 147.8 152.4
Including 0.005 23.00 0.465 23.25 1.5 123.4 125.0
RMR-048 Packard Mine 0.018 4.50 0.108 5.40 83.8 7.6 91.4 227.1
Including 0.012 26.70 0.546 27.30 1.5 50.3 51.8
RMR-048 Packard Mine 0.012 5.60 0.124 6.20 1.5 121.9 123.4
RMR-049 Packard Mine 0.048 3.73 0.123 6.13 4.6 0.0 4.6 152.4
RMR-049 Packard Mine 0.012 4.57 0.103 5.17 56.4 51.8 108.2
RMR-050 Packard Mine 0.005 6.90 0.143 7.15 1.5 164.6 166.1 195.1
Including 0.008 6.10 0.130 6.50 1.5 175.3 176.8
Including 0.004 4.84 0.101 5.04 7.6 187.5 195.1
RMR-051 Packard Mine 0.039 3.30 0.105 5.25 1.5 33.5 35.1 158.5
RMR-051 Packard Mine 0.012 4.88 0.110 5.48 115.8 42.7 158.5
Including 0.042 20.77 0.457 22.87 4.6 131.1 135.6
Including 0.018 21.80 0.454 22.70 3.0 143.3 146.3
RMR-052 Packard Mine 0.023 3.89 0.101 5.04 128.0 0.0 128.0 128.0
Including 0.032 25.57 0.543 27.17 9.1 12.2 21.3
Including 0.148 18.70 0.522 26.10 1.5 35.1 36.6
Cutoff grade: Ageq. = 5 g/t; (1) Aueq.= Au+(Ag/50) & Ageq.= Ag+(Au*50); (2) True Thickness Unknown; NSV = No Significant Values

Rye Patch Gold US Inc. maintains a strict quality control program at all of its projects. All reverse circulation samples are submitted to American Assay with prep-blanks, assay blanks, and gold and silver standards. Rye Patch Gold US Inc. inserts approximately one quality control or quality assurance sample for every twenty samples submitted to the assay laboratory. The RC chips are logged and photographed on site. American Assay collects the samples and transports them to their 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 values above 10 g/t gold (over limits) are confirmed using fire assay with a gravimetric finish. Silver is analyzed using a two- or four-acid digestion and an AA finish. Silver values over 100 g/t silver are re-analyzed using volumetric dissolution.

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 US Inc. controls over 100 square kilometres (40 sq. miles) along the Oreana trend. The Rochester Property - LH Claims - covers 30.3 square kilometres (7,493.2 acres), and the mineral title is disputed by Coeur Rochester Inc. The Sixth District Court of Nevada has enjoined Rye Patch Gold US Inc., for safety reasons, from conducting exploration activities on approximately 7.4 square kilometres (1,839.3 acres) covering the active open pit, mine dumps and leach pads in the immediate Rochester Mine area. It is the position of Rye Patch Gold US Inc. that all the LH claims are valid senior unpatented lode mining claims, including those claims within the court-ordered enjoined area. Geologic assessment and drilling confirm discoveries on the LH claims and the land area which covers up to 20% of Rochester's published proven and probable silver and gold reserve along with a significant portion of the published silver and gold resource based on Coeur's December 5, 2011, news release.

The Company 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 the acquisition, exploration, and development of quality resource-based gold and silver projects. Rye Patch Gold US Inc. is developing gold and silver resources along the emerging Oreana trend, located in west-central Nevada, and is exploring 66 square kilometres along the Cortez trend near Barrick's two new gold discoveries. 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 the Company, 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 financial position of Rye Patch to pursue legal undertakings; the outcome of legal action relating to the Rochester property and the LH unpatented claims, 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. Litigation is inherently uncertain and factors that could cause actual results to differ materially from those in forward-looking statements include unexpected judicial findings of fact, previously unknown facts arising, and decisions which depart from past legal precedent and similar events.

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.

Contact Information