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Category: Investment, Gold, Mining
Rye Patch Gold Corp. (OTC:RPMGF; TSX.V:RPM) Completes Work Commitment for Wilco Earn In
VANCOUVER, BRITISH COLUMBIA - March 4, 2010 (Investorideas.com Mining Stocks Newswire) - Rye Patch Gold Corp (TSX-V:RPM)(OTC.BB:RPMGF) ("Rye Patch Gold" or the "Company") is pleased to announce that it has completed the work commitment obligations to earn a 100% interest in the Wilco project by spending over US$3 million at the project to date. This milestone was achieved one year early.
"2010 has started off with Rye Patch making great strides to reach its resource goals in Nevada and add value to its shareholders. The signing of the Definitive Agreement on the REN project and now completing the earn-in at Wilco shows the company is positioned to deliver on its resource goals in Nevada. In addition, the Company anticipates completing a National Instrument 43-101 compliant resource estimate on the Lincoln Hill property this spring. When completed, the estimate will be the Company's fourth resource in Nevada. With gold production declining world wide, Rye Patch is uniquely positioned with gold and silver resources in Nevada to capitalize on gold price and resource demand," stated William C. (Bill) Howald, CEO and President
Rye Patch Gold's interest in the Wilco project is subject to the back-in rights of a subsidiary of Newmont Mining Corporation ("Newmont"). If Rye Patch Gold completes a positive feasibility study on the Wilco project, Newmont will then have 120 days to exercise its back-in right to earn a 60% interest in the Wilco project which, if exercised, requires Newmont to contribute expenditures totalling US$15 million on the project prior to the 8th anniversary of exercising the back-in right. Newmont may also earn an additional 10% interest in the project (for a total 70% interest) by expending an additional US$5 million (for a total of US$20 million) on the property. If Newmont declines to exercise its back-in rights, or fails to exercise such rights within the 120-day time period, or fails to complete the necessary expenditures, Rye Patch Gold may complete the acquisition of the Wilco project by making a one-time payment to Newmont of US$2 million in cash (or half in cash and the remainder in Rye Patch Gold common shares, at Rye Patch Gold's sole discretion), failing which the project reverts to Newmont. Thereafter, Newmont's sole interest in the Wilco project will be a sliding scale 2% to 5% net smelter returns royalty (NSR) in respect of all gold, silver and platinum group metals production, as determined based on the prevailing gold price, and a 3.5% NSR in respect of production from all other minerals.
Going forward, the next steps for the Wilco project will entail additional metallurgical testing and preparation work for a Preliminary Economic Assessment (PEA). Also, the Company is designing a follow-up drilling campaign for the high-grade gold zone encountered in the North Basin.
About Rye Patch Gold
Rye Patch Gold Corp. 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 project, Lincoln Hill and located within the emerging Oreana gold trend in west-central Nevada and the Jessup project in Churchill County, 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
Contact:
Rye Patch Gold Corp
Mr. Lindsay Malcolm
Manager Corporate Development
(604) 638-1588
(604) 638-1589 (FAX)
lindsay@ryepatchgold.com
www.ryepatchgold.com
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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