hedge contract price VANCOUVER, Jan. 5, 2017 /CNW/ - Rye Patch Gold Corp. (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) (the "Company" or "Rye Patch") is pleased to announce that within four months of commencement of the Florida Canyon Restart Project in Nevada, Rye Patch has achieved a major milestone of loading oxide material onto the South Heap Leach Pad Expansion.
"The Florida Canyon team has worked to achieve this transformational milestone with great enthusiasm," William C. Howald, Rye Patch's President and CEO, said. "The Project was completed in just four months and has placed the Company on the verge of becoming Nevada's next gold producer."
The Florida Canyon Restart Project consisted of three key elements: refurbishing the mining fleet, moving the crusher and building the new leach pad.
The December purchase of an additional Caterpillar 993K loader completes the mining fleet. The fleet now consists of three loaders, eleven 150-ton haul trucks and five 100-ton haul trucks.
Mining commenced from the Jasperoid Hill deposit on November 1, 2016, and oxide material has been stockpiled adjacent to the crusher. With the crusher fully operational as of December 24, 2016, material is now being placed on the lower one-third portion of the phase one cell of the new leach pad. To date, approximately 45,500 tonnes have been placed on the pad.
"The crusher expansion and move concluded with the delivery of the lime silo in December," Howald said. "With this last piece of equipment, the crusher is now fully operational."
The projected ramp-up to 600,000 tons per month production (545,000 tonnes per month) is on track for April 2017. The first gold pour from the new leach pad is projected to occur in February, ensuring timely delivery in accordance with Company projections.
Howald added, "While spot gold prices remain soft, the Company has the benefit of selling 100% of its sales into its hedge contract price of USD $1,276 per ounce, providing stability during the start-up and initial stages of production." Nice :)