James West on RPMRye Patch Continuing to Grow Nevada Resources
By Claire O'Connor and James West
MidasLetter.com
Monday, June 14, 2009
OnMay 18th 2010 Rye Patch Gold announced the first NI 43-101 compliantresource estimate for the company’s 100% owned Lincoln Hill gold-silverproject in Western Nevada. Combined with the Wilco and Jessup projects,two other gold-silver properties lying upon the same trend, thecompany’s resource inventory is now comprised of 1,182,780 ounces ofgold equivalent in the measured and indicated category, plus 2,727,100ounces of gold equivalent in the inferred category.
With resource estimates for all three properties nowsuccessfully completed, Rye Patch is eager to explore the beckoningpotential of the ever-reliable Oreana gold trend whilst developing adrill program for Lincoln Hill.
"With Wilco, Jessup and now the Lincoln Hill resourceestimates complete, the increased gold and silver resources suggestthat the Oreana trend has significant potential and scale.” Rye PatchCEO and President Bill Howald comments, “The company is advancing theOreana trend projects and is continuing to pursue other high-qualityresource projects in Nevada.”
The Results
According to a press release issued May 18th, the resource table belowshows the new Lincoln Hill gold and silver inferred resource estimateusing a 0.343 g/t (0.01 opt) gold and gold equivalent (gold equivalentor Aueq) cut-off grade.
“We’re really excited about these results,” Howaldcontinues, “There are only 43 holes that make the resource. What we seenow is where it’s open and where we believe the high grade is going, sowe’ve found ourselves with some exciting opportunities that we’llfollow up on based on this resource estimate.”
The Lincoln Hill Project
Covering 3,276 acres of gold-silver rich land, the Lincoln Hill andadjacent Gold Ridge properties securely position Rye Patch along theHumboldt gold trend and Rochester mining district of Western Nevada.
The area has supported active exploration for nearly 150 yearsand underground mining in the early 1900s reportedly averaged 7.5ounces of gold per ton. Most of this work occurred along a 7,000-footstrike 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 theLincoln Hill property in 2001 and 2002, intersecting anomalous-to-oregrade values in drilling. Analysis of both companies' data by Rye Patchindicates the project contains potential for a bulk-tonnage gold-silverdeposit similar to the nearby Rochester Silver Mine and Spring Valleydiscovery. The Rochester district has produced 4.5 million ounces ofgold and 130 million ounces of silver.
Rye Patch Resource
Rye Patch decided to explore thisbulk-tonnage potential with drill programs in 2008 and 2009, basingthis most recent resource estimate on those programs.
This new gold and silver estimate for Lincoln Hill is based on3-D geologic models that incorporated 4,449 individual verified goldand silver assays from 49 drill holes, including Rye Patch's 43 reversecirculation drill holes and 4 core holes. Using US$900 per ounce forgold and US$18 per ounce for silver, an inferred gold equivalentresource of 569,760 ounces with an average grade of 1.029 g/t Aueq wasestimated.
The resource is classified using a combination of distance tothe nearest sample, the number of samples, and number of holes used toestimate 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 widelyspaced, the resource was classified as inferred. Additional drillingmay result in upgrading the inferred resource to measured and indicatedresources.
“Now that we’ve got the first resource, we will beputting together our next phase of drilling. There will definitely besome internal drilling into the resource so that we can start toupgrade a portion of the inferred into the measured and indicatedcategory, as well as a follow up on the areas where the resource isopen.” Howald explains.
The Oreana Trend
The Lincoln Hill property sits on the constantly developing OreanaTrend, as do the Wilco and Jessup properties. Also along the trend isMidway Gold's Spring Valley deposit located to the northeast where arecent resource indicates and inferred resource of 1.83m ounces. SpringValley is currently being explored by Barrick Gold.
Although Rye Patch had previously regarded the Oreana Trend asa relatively reliable source of gold and growth, the Lincoln Hillresource 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 isLincoln Hill and immediately adjacent to Lincoln Hill is SpringValley.” Howald comments, “We control the ground in between Lincoln andWilco and you can see that Rye Patch’s combined projects are startingto become more of a district, rather than just a single deposit. WithWilco and Lincoln in all categories if you will, as a gold equivalent,there’s well over 3 million ounces now between those two projects andtheir 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 fornow, Wilco hasn’t, and mustn’t, be forgotten. In March of this year RyePatch announced that it had completed the work commitment obligationsto earn a 100% interest in the Wilco project by spending over US$3million at the project to date. This milestone was achieved one yearearly.
The company then embarked upon a 5000 meter drilling campaignin April to test high-grade feeder zones in the North Basin target areaand 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’vehad a drill rig on site now for about a month and are following up onsome high grade that was encountered in the North basin. We should havesome results coming out in the near future.” Howald remarks, “Inaddition, we’re progressing with our plans to complete a preliminaryeconomic assessment for Wilco by the end of the year. We’ll start withmetallurgical testing in the Section Line discovery and acquire all therequisite agreements to put the PEA together.”
Rye Patch is certainly making the most of holding claims in thestate that currently produces 78% of U.S. gold and 8% worldwide. Theserecent results at Lincoln Hill, combined with the steady success atWilco, are propelling the company even closer towards its goal of a 10million ounce gold inventory. With an eye always open for newacquisitions, the sky might just be the limit for Rye Patch.
Follow their progress at www.ryepatchgold.com.
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SOURCE:
https://www.midasletter.com/news/100614_Rye-patch-continues-to-grow-nevada-resources.php