Source: Streetwise Reports
December 13, 2017 (Investorideas.com Newswire) A flagship Nevada project is showing results and the company anticipates commencing commercial production in the first quarter of 2018.
"Production reaching 3,500 ounces represents a key milestone in the continuing upward production trend. At this point mining operations now begin to contribute positive cash flows to the Company," stated William Howald, the company's president and CEO. "Three of the four new 785 haulage trucks are working with the fourth to be operational in early December. Over liner material has been laid over an extent that maximizes leach cell size and allows for a primary leach cycle of 45 days before stacking the second lift. Overliner will be completed in late December. The positive trend is continuing in Q4."
"The October and now November production results confirm the Florida Canyon mine is ramping up to commercial production in Q1 2018," he added.
George Topping, analyst with iA Securities, stated in a Dec. 11 report that "three new haulage trucks have been added, with a fourth expected this month. Additionally, the overliner placement is expected to be completed shortly. Both of these events should increase efficiencies at the mine, allowing more ore to be stacked on the pad and uninterrupted leaching."
"Rye Patch has a low EV (US$15/oz.) for a mine that just started production, and with a 200Koz p.a. capacity at the plant, at our increasing gold prices, Rye Patch should be a highly profitable mine once through the build-up period, with significant growth potential through bootstrapping Lincoln Hill and Wilco," Topping concluded. Topping rates Rye Patch as a Buy with a target price of CA$0.70.
In a Nov. 29 report, Macquarie analyst Michael Gray highlighted that he sees "potential multi-million ounce potential, including high grade feeder structures at FCM, with over a fairly sizeable target footprint and potential +200m thicknesses as observed from the latest drill results and also previous drilling." He points out that the Florida Canyon mine is "turning the corner in terms of several leading indicators (mining & crushing rates, head grade, fresh plastic pad availability)."
Gray concluded by reiterating Macquarie's Outperform rating and C$0.50 target price on Rye Patch, noting "The sulphide drill results enhance the catalyst complexion; however, we remain focused on the ramp-up execution at Florida Canyon."
Rye Patch shares are currently trading at around CA$0.23.
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