Monday, December 5, 2011

Rye Patch Expands Oreana Trend Holdings Stakes Mining Claims On Existing Gold And Silver Resources

Rye Patch Expands Oreana Trend Holdings Stakes Mining Claims On Existing Gold And Silver Resources

Rye Patch Gold Corp (TSX.V: RPM; OTCQX: RPMGF) announced today it has acquired land and mineral rights by staking open, locatable public lands which contain gold and silver resources in the Rochester Mining District, Pershing County, Nevada. 

Highlights Include:
  • Rye Patch Gold identified open locatable public lands and staked claims covering portions of the Rochester and Nevada Packard gold and silver mines and their resource inventory.
  • Approximately 400 unpatented mining claims covering 30.3 square kilometres. An unknown portion of the Rochester and Nevada Packard resources along with numerous gold-silver targets are within the newly staked ground.
  • Rye Patch's geologic team is on the ground sampling, mapping and permitting drill targets on the new LH claims. There are several targets within the claim block that require immediate follow up. 
  • The Rochester orebody is open to the north and northwest and the pit boundary is expanding on to Rye Patch Gold's LH claims. Published drill results show the Nevada Packard resource continued from the patented claims on to the LH claims.
  • The geologic team is working to assess the amount of gold and silver resource present on the LH claims. Several additional targets are within the claim block including the Mystic, Looney and Limerick Basin will be permitted. 
  • Finally, the Blackridge fault zone is on the LH Claims. This ore control has significant potential and controls gold and silver mineralization at the Relief Canyon, Packard, Rochester, and Spring Valley deposits.
  • Lincoln Hill, Wilco, and Jessup projects, Rye Patch Gold's resource inventory along the Oreana trend now totals 2,117,000 ounces of gold and 30,505,000 ounces of silver in the inferred category.

 Johnston-Sequoia Commentary:

The image below will be familiar to many of our readers (please keep in mind that the image is counter intuitive - i.e. you're looking south). The purpose of the image is to articulate the dominance of this evolving district in Pershing County Nevada.  Over the past three years we have watched this district evolve with Midway growing Spring Valley from 993,000 ounces in 2008 (in a "blind" Alluvium covered basin) to 1,835,000 ounces in 2009.  Within the span of nine days the world's largest gold company joint ventured the project (March 11, 2009)Since that time Barrick Gold has grown the deposit to 4,100,000 ounces of gold in the inferred category (still open to the north and at depth). Previous to the tremendous work that was done by Midway this was long thought of as a silver district.  This of course is because the Coeur d'Alene Rochester Mine is one of the largest producing silver mines in North America over the past twenty years (125,000,000 ounces of silver and 1,200,000 ounces of gold produced since 1986) and has just recently returned to production.  It's very well documented that the Blackridge Fault is the structural control at Rochester which is makes Rye Patch's new claims so significant.  Shall be very interesting to monitor the progress over the next few months as this new ground is explored by Mr. Bill Howland's exploration team.

To round out the companies working along the Blackridge fault we would be remiss if we did not mention Terraco Gold Corp. - which remains our top overall pick from a pure value investor standpoint.  Terraco continues to drill arguably the last untested area along this evolving Humboldt district.  We are advisors of Terraco Gold and are shareholders as well.  As always please do your own due diligence.

1 comment:

  1. Matt: A truly progressive story on Rye Patch. The exploding share price is testament to the hope for RPM:TSXV, OTC:RPMGF and by extension, the whole region. 80 % in one day!!

    Thanks for pointing out. It's like a regional jig saw puzzle that is gradually filling-in.

    I like to think of the Black Ridge fault which runs through all the companies properties that you mention above, as the 'Backbone of Value' in the tight region in the Google earth picture above. The body is filling out all around that backbone--and the area is maturing into the place to be for gold and silver production in Nevada.

    As you mention, Terraco Gold's Moonlight property is the last part of the backbone to be explored. I cant wait to see what muscle and sinew exist in this northern zone.