Rye Patch Continuing to Grow Nevada Resources

By Claire O'Connor and James West

On May 18th 2010 Rye Patch Gold announced the first NI 43-101 compliant resource estimate for the company’s 100% owned Lincoln Hill gold-silver project in Western Nevada. Combined with the Wilco and Jessup projects, two other gold-silver properties lying upon the same trend, the company’s resource inventory is now comprised of 1,182,780 ounces of gold equivalent in the measured and indicated category, plus 2,727,100 ounces of gold equivalent in the inferred category.

With resource estimates for all three properties now successfully completed, Rye Patch is eager to explore the beckoning potential of the ever-reliable Oreana gold trend whilst developing a drill program for Lincoln Hill.

"With Wilco, Jessup and now the Lincoln Hill resource estimates complete, the increased gold and silver resources suggest that the Oreana trend has significant potential and scale.” Rye Patch CEO and President Bill Howald comments, “The company is advancing the Oreana trend projects and is continuing to pursue other high-quality resource projects in Nevada.”

The Results
According to a press release issued May 18th, the resource table below shows the new Lincoln Hill gold and silver inferred resource estimate using a 0.343 g/t (0.01 opt) gold and gold equivalent (gold equivalent or Aueq) cut-off grade.

“We’re really excited about these results,” Howald continues, “There are only 43 holes that make the resource. What we see now is where it’s open and where we believe the high grade is going, so we’ve found ourselves with some exciting opportunities that we’ll follow up on based on this resource estimate.”

The Lincoln Hill Project
Covering 3,276 acres of gold-silver rich land, the Lincoln Hill and adjacent Gold Ridge properties securely position Rye Patch along the Humboldt gold trend and Rochester mining district of Western Nevada.

The area has supported active exploration for nearly 150 years and underground mining in the early 1900s reportedly averaged 7.5 ounces of gold per ton. Most of this work occurred along a 7,000-foot strike length where mine tailings and numerous dumps are found today. Significant visible gold is evident as well.

Both Newmont Mining and Coeur d'Alene Mines investigated the Lincoln Hill property in 2001 and 2002, intersecting anomalous-to-ore grade values in drilling. Analysis of both companies' data by Rye Patch indicates the project contains potential for a bulk-tonnage gold-silver deposit similar to the nearby Rochester Silver Mine and Spring Valley discovery. The Rochester district has produced 4.5 million ounces of gold and 130 million ounces of silver.

Rye Patch Resource
Rye Patch decided to explore this bulk-tonnage potential with drill programs in 2008 and 2009, basing this most recent resource estimate on those programs.

This new gold and silver estimate for Lincoln Hill is based on 3-D geologic models that incorporated 4,449 individual verified gold and silver assays from 49 drill holes, including Rye Patch's 43 reverse circulation drill holes and 4 core holes. Using US$900 per ounce for gold and US$18 per ounce for silver, an inferred gold equivalent resource of 569,760 ounces with an average grade of 1.029 g/t Aueq was estimated.

The resource is classified using a combination of distance to the nearest sample, the number of samples, and number of holes used to estimate each block, while also taking into account project history, database quality, sample integrity and geologic understanding.

Because the Lincoln Hill drill holes are few and widely spaced, the resource was classified as inferred. Additional drilling may result in upgrading the inferred resource to measured and indicated resources.

“Now that we’ve got the first resource, we will be putting together our next phase of drilling. There will definitely be some internal drilling into the resource so that we can start to upgrade a portion of the inferred into the measured and indicated category, as well as a follow up on the areas where the resource is open.” Howald explains.

The Oreana Trend
The Lincoln Hill property sits on the constantly developing Oreana Trend, as do the Wilco and Jessup properties. Also along the trend is Midway Gold's Spring Valley deposit located to the northeast where a recent resource indicates and inferred resource of 1.83m ounces. Spring Valley is currently being explored by Barrick Gold.

Although Rye Patch had previously regarded the Oreana Trend as a relatively reliable source of gold and growth, the Lincoln Hill resource estimate reinforces that belief powerfully.

“If you look at what we control on the Oreana trend – Rye Patch has the Wilco project to the Southwest, about 10 km away is Lincoln Hill and immediately adjacent to Lincoln Hill is Spring Valley.” Howald comments, “We control the ground in between Lincoln and Wilco and you can see that Rye Patch’s combined projects are starting to become more of a district, rather than just a single deposit. With Wilco and Lincoln in all categories if you will, as a gold equivalent, there’s well over 3 million ounces now between those two projects and their proximity to each other might allow for development as district, if you will.”

The Wilco Project
Although Lincoln Hill is at the forefront of Rye Patch revelations for now, Wilco hasn’t, and mustn’t, be forgotten. In March of this year Rye Patch announced that it had 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.

The company then embarked upon a 5000 meter drilling campaign in April to test high-grade feeder zones in the North Basin target area and drill a new pediment target. Right now, they’re still drilling, with no intentions of stopping any time soon.

“At Wilco, we are in the process of drilling. We’ve had a drill rig on site now for about a month and are following up on some high grade that was encountered in the North basin. We should have some results coming out in the near future.” Howald remarks, “In addition, we’re progressing with our plans to complete a preliminary economic assessment for Wilco by the end of the year. We’ll start with metallurgical testing in the Section Line discovery and acquire all the requisite agreements to put the PEA together.”

Rye Patch is certainly making the most of holding claims in the state that currently produces 78% of U.S. gold and 8% worldwide. These recent results at Lincoln Hill, combined with the steady success at Wilco, are propelling the company even closer towards its goal of a 10 million ounce gold inventory. With an eye always open for new acquisitions, the sky might just be the limit for Rye Patch.

Follow their progress at www.ryepatchgold.com.

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SOURCE: http://www.midasletter.com/news/100614_Rye-patch-continues-to-grow-nevada-resources.php