Rye Patch Updates Net Smelter Return Royalty on Rochester Mine
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 9, 2014) - Rye Patch Gold Corp. (TSX VENTURE:RPM)(OTCQX:RPMGF)(FRANKFURT:5TN) (the "Company" or "Rye Patch") - On April 7, 2014 Coeur Mining (NYSE:CDE) announced preliminary production results of 750,000 ounces of silver and 8,192 ounces of gold for the first quarter of 2014 from the Rochester mine located along the Oreana trend in Pershing County, Nevada. Rye Patch Gold US Inc. holds a 3.4% Net Smelter Return royalty over all gold and silver ounces produced and sold. The royalty is capped at 39.4 million ounces of silver equivalent, is paid quarterly with the first payment due by April 15, 2014 and is fully leveraged to the price of gold and silver.
Highlights:
- In the first quarter of 2014, the Rochester mine placed 3.65 million tons of material on its leach pads which is a 16% increase from the fourth quarter of 2013;
- Average silver and gold grades were 0.59 opt silver and 0.003 opt gold which is a 5% increase in silver grade and a 50% increase in gold grade from the previous quarter;
- The average daily silver production for the first quarter was 8,337 ounces per day, and the average daily production rate has exceeded 13,000 ounces of silver per day starting in April;
- Rochester achieved higher crushing rates and placed a larger number of tons on the leach pad than in recent quarters;
"We are pleased to see the solid performance of Coeur Mining at the Rochester mine and the progress made toward increasing production," stated William (Bill) Howald, the Company's president and chief executive officer. "With the Rochester operation achieving production consistency, Rye Patch can continue to unlock the potential of its project portfolio by re-investing the royalty cash flow to explore its projects, expand its gold and silver inventory, and add value for all stakeholders. Several targets are scheduled for drilling this year that will contribute to the understanding of the Oreana and Cortez trends. We appreciate the efforts made by Coeur Mining in striving for consistency in their production and expansion goals."
Mr. William Howald, AIPG Certified Professional Geologist #11041, Rye Patch Gold'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.
Rye Patch Gold Corp. is a Tier 1, well-funded junior mining company with a royalty revenue stream from the operating Rochester silver mine and significant gold and silver resources, all located in the mining friendly state of Nevada, USA. The Company's seasoned management team is engaged in the acquisition, exploration, and development of quality resource-based gold and silver projects. Rye Patch Gold US Inc. controls over 75 square kilometres (30 sq. miles) of land, and has a 3.4 % Net Smelter Return (NSR) royalty from the Rochester silver mine along the Oreana trend located in west-central Nevada. The Company is aggressively developing gold and silver resources along this emerging trend, utilizing existing funds and cash flow from the NSR royalty which is fully leveraged to the price of gold and silver. In east central Nevada, Rye Patch Gold US Inc. is exploring 66 square kilometres of exploration land along the prolific Cortez trend contiguous to Barrick's new Goldrush deposit. The Company has established gold and silver resource milestones and time frames in order to build a premier resource development company. For more information about the Company, please visit our website at www.ryepatchgold.com.
On behalf of the Board of Directors
William C. (Bill) Howald, CEO & President
This news release contains forward-looking statements, which address future events and conditions, 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 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 (and, in respect of the Coeur Rochester mine 3.4% NSR, the reliability of calculation of Coeur's mineral resources and reserves); 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.
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.
