Nevada mining operations continue on schedule and budget
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."
Mr. William Howald, AIPG Certified Professional Geologist #11041, Rye Patch's CEO and President,
is a Qualified Person as defined under National Instrument 43-101. He has reviewed and approved the contents of this news
release.
About Rye Patch Gold Corp.
Rye Patch Gold Corp. is a Nevada based, Tier 1, mining company engaged in the mining and
development of quality resource-based gold and silver mines and projects along the established Oreana trend in west central
Nevada. Leveraging its strong financial position and cash to acquire the operating Florida Canyon
Gold Mine, Rye Patch Gold Corp. now controls a trend-scale platform with operations, replacement assets and exploration upside. The
combination of operations and exploration concentrated along a major Nevada gold trend positions
Rye Patch as an emerging mid-tier gold producer with tremendous value added potential. For more information, please visit our
website at www.ryepatchgold.com.
On behalf of the Board of Directors
'William Howald'
William C. (Bill) Howald, CEO & President
Forward-Looking Statements
This news release contains forward-looking statements relating to future plans and objectives of the Company, proposed
operations of the Company including mine development, funding requirements, future events and conditions and other statements that
are not historical facts, all of 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 requirement of the Company to satisfy the
conditions for drawdowns in the credit agreement entered into with Macquarie Bank Limited ("Credit Facility"), the achievement of
mine redevelopment plans and production results; the availability of funds; the financial position of Rye Patch; the timing and
content of work programs; the results of exploration activities and development of mineral properties; the interpretation of
drilling results and other geological data; the reliability of calculation of mineral resources; the reliability of calculation of
precious metal recoveries; the 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. As a result, the
Company cannot guarantee that the drawdowns under the Credit Facility and the Florida Canyon mine redevelopment will be completed
on the terms and within the time disclosed herein or at all.
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.
SOURCE Rye Patch Gold
