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.
Read what other experts are saying about:
1) Melissa Farley compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an employee. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: Rye Patch Gold. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.
This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp
Additional info regarding BC Residents and global Investors: Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: https://www.bcsc.bc.ca/release.aspx?id=6894. Global investors must adhere to regulations of each country.