Rye Patch Gold RPMGD

RE:Barrick

[pipefit2]

To put this Spring Valley news into perspective, let me lay out the conditions that have to be met to bring Wilco to a similar spot along the development path.
a. Rye Patch completes and delivers to NEM a pre-prefeasability study
b. Within 6 months of that presentation, NEM ops to back in at the 70% level (there is lower one too, maybe 50% or 60%), but let's assume 70%
c. NEM spends $20 million at Wilco within 5 years, and that gives them 70% interest in Wilco

So if they spend $20 million, I would expect that that would add several million gold eq. ounces.  But perhaps at these gold prices, perhaps NEM doesn't want to proceed at these gold prices. 

Since we have a pretty good cash position, I would suggest that they offer NEM the following:  NEM and rpm.v spend, combined, $3 million on Wilco drilling, and funding contributions be along the 70/30 split. (roughly $2 million from NEM and $1 million from Rye Patch)  This is nothing to NEM.  If they don't like the results, they are not obligated to spend another nickel.

On the other hand, if they find one million more gold eq ounces, maybe that turns some heads at NEM and they start leaning on us to complete the pre-prefeasability study, and we get another Spring Valley going.