Rye Patch Gold RPMGD

RE:RE:General Mine Manager booted

[Fullplate]

When the disappointing June production numbers were reported Monday morning, there were two explanations for the decrease from May. There was the cracked vessel and there were issues with truck repairs and maintenance. The first issue may easily be something that wouldn't be planned for and would not be the fault of management. But not having enough trucks in the fleet to cover down time or not doing the necessary preventative maintenance to avoid major breakdowns - that is definitely management's fault. What is unclear is what level of management is responsible. Not taking care of maintenance properly would be the mine manager, but failing to provide the mine with enough trucks would be the CEO in a company the size of RyePatch. 

It it sounds like the new mine manager should be prepared to avoid repeating these mistakes at Florida Canyon. If the mine manager who was replaced works best on start-ups, it should work well to assign him to Wilco and Lincoln Hill as the press release indicated. For shareholders like ourselves, we don"t have enough information to know all of the answers to the important questions. We can only observe the track record. So far the track record is excellent in putting together the assets and in making sure there is enough financing (although dilution a bad result).  The record in bringing the mine into production started out fairly well, but June was poor. Hopefully the new mine manager will get it back on track.

The true test of management's skill is still waiting to be proved. That is whether or not they can produce at the levels and costs predicted. If they can even do 90% of the plan, it will be a success.  The stock price we are seeing is expressing serious doubts. On the other hand, most of us shareholders wouldn't stick around if we didn't believe it will happen. It should be an interesting time the rest of this year and next to see the results.