Rye Patch Works Toward Eight Million Nevada Gold Ounces
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To The Fronteer
Rye Patch Works Toward Eight Million Nevada Gold Ounces
~ By Kevin Michael Grace - May 12, 2011
Some junior miners are uncertain about it. Others are coy. Rye 7.04 g/t gold and 92.1 g/t silver over 1.8 metres) and 6.22 g/t
Patch Gold announces its intention in big block capitals on its gold over 4.8 metres (including 16.4 g/t gold over 1.4 metres).
website: “Build a critical mass of quality gold and silver ounces
in the ground to entice a buyout.” President and CEO Bill March assays included 2.17 g/t gold over 17.3 metres (includ-
Howald further elucidates the concept: “Newmont just paid over ing 9.98 g/t over 3 metres), 31.75 g/t gold and 106.3 g/t silver
$400 per ounce to Fronteer Gold—they’re already miners, good over 2.1 metres, and 3.86 g/t gold and 31.81 g/t silver over 37
miners, and we feel we’re pretty good finders. So the hand-in- metres (including 40.33 g/t gold and 175.88 g/t silver over 2.2
glove fit is for us to deliver ounces to the likes of Newmont or metres).
Barrick or Kinross [which owns 15% of Rye Patch] or others
already operating in Nevada.” Howald calls the May results “pretty good” and the March re-
sults “outstanding.” He adds, “They show that the drilling is fairly
Rye Patch has four properties that occupy 85 square kilometres predictable—we can predict where the structure’s going to be.
in Nevada. Its gold inventory consists of 986,000 gold ounces And we’re hitting grades and alteration along a 500-metre long
measured and indicated, 2.12 million ounces inferred. Its silver strike length. We’ll continue to delineate that through 2011, with
inventory consists of 9.84 million ounces measured and indi- the idea of putting out a new resource on Wilco, including this
cated, 30.5 million ounces inferred. All categories considered new high-grade zone, early in 2012.”
as gold equivalent totals 3.9 million ounces.
He concludes, “We’re very happy with the project. Back in 2006,
we had about 150,000 ounces gold to start with. We proved it
up to over 2 million ounces and over 20 million ounces silver
based on a new idea. I guess it goes to show that new ideas
can bear fruit in old districts.”
The company’s shares have risen fairly steadily from a low
of $0.12 in September 2010. There are currently 125 million
shares trading at $0.37 for a market cap of $46 million.
According to a March 3 analyst report by Ubika Research: “We
believe that Rye Patch is currently undervalued. With the ac-
quisition of Fronteer Gold Inc by Newmont Mining Corporation,
investor attention is being focused on Nevada gold juniors…
The increase in Rye Patch’s resource is being driven by its Wil- Based on Fronteer Gold Inc’s known resource deposit of 8.1
co Project on the Oreana Trend. Howald says, “We picked it up million ounces (including the interim resource estimate at the
back in 2006 as a Newmont farm-out. We had some new ideas Gold Canyon project) this takeover price represents a $288/oz
with regards to the geology and mineralization and conducted valuation… As Rye Patch proves up its resource estimate and
drill programs on the property in 2007, 2008, 2009 as well as crosses the 5 million oz benchmark in ounces it would be in the
“
last year. In 2010, we started to hit some very high grades on sights of majors like Newmont or Barrick.”
the northern side of the Section Line resource area. We fol-
lowed that up again in the fall and continued to have success in
high grades over distances of five to 15 metres. We mounted a
core program this year to try to get a better handle on the geol- The hand-in-glove fit is for
ogy and a better understanding of the mineralization.” us to deliver ounces to the
likes of Newmont or Barrick
Wilco assays released May 9 include 2.25 g/t gold and 10.2 g/t or Kinross
silver over 6.1 metres, 1.7 g/t gold and 28.4 g/t silver over 11.3
metres (including 4.28 g/t gold and 74.6 g/t silver over 2.8 me- —Bill Howald
tres), 2.25 g/t gold and 31.9 g/t silver over 12 metres (including
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