🕐04.03.10 - 19:43 Uhr
Rye Patch Gold Corp. Completes Work Commitment For Wilco Earn In
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Re: News Release - Thursday, March 04, 2010
Rye Patch Gold Corp.
Completes Work Commitment For Wilco Earn In
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News Release No.
10 - 06
Vancouver, British Columbia, March 4, 2010 - Rye Patch Gold Corp
(TSX-V: RPM; OTC: 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 gold and silver resource asset 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 Ren project in the
prolific Carlin gold trend in northeastern Nevada; and the Wilco
project, Lincoln Hill and Jessup project located along the emerging
Oreana gold trend in west-central Nevada.
The Company has established
gold and silver resource milestones and time frames in order to build a
premier resource development company.
Rye Patch has strategic
relationships with the top Nevada producers including Newmont Mining,
Barrick Gold and Kinross Gold, and is uniquely positioned with gold and
silver resources to capitalize on gold price and resource demand.
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
For additional information contact:
Mr.
Lindsay Malcolm
Rye Patch Gold Corp
Manager Corporate Development
Tel.: (604) 638-1588
Fax: (604) 638-1589
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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Copyright (c) 2010 RYE PATCH GOLD CORP.
(RPM) All rights reserved.
For more information visit our website at http://www.ryepatchgold.com/
or send mailto:
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