Rye Patch Gold Reports Q1 2018 Production Results
Access to higher grade Radio Tower orebody in H2 2018
VANCOUVER, April 11, 2018 /CNW/ - Rye Patch Gold Corp. ("Rye Patch" or the "Company") (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) reports Q1 2018 production results at the Company's flagship Florida Canyon mine in Pershing County, Nevada.
Production Highlights for Q1 2018
- Produced 10,844 ounces of gold and 5,457 ounces of silver;
- Achieved a price of gold sales of US$1,332.53 per ounce;
- Mined 1,856,400 tons of ore;
- Crushed 2,151,900 tons of ore;
- Placed 22,300 ounces of gold on the pad; and
- Realized a waste to ore stripping ratio of 1.16.
Gold production dipped in January and February associated with managing the water balance during the ramp up of the second Carbon-in-Column (CIC) plant, and unplanned equipment failures in the refinery. Gold production rebounded in March with the production of 4,540 ounces of gold. The Company is forecasting between 15,000 and 16,000 ounces of gold in Q2 2018.
Q1 started with the ramp up of the second CIC plant which increases the solution application capacity by 67 percent. The successful ramp up and water balance process was completed in early February and results are encouraging with increased application rates being realized.
The CIC plant recovered 12,053 ounces of gold to carbon. Several issues occurred in the refinery as older equipment was brought back to commercial production levels. Challenges with the furnace, thermal fluid heater and regeneration kiln were solved, and the equipment is working at design specifications. The result of these refinery issues is deferral of approximately 1,500 ounces of gold production.
Overall, winter weather was mild for January and February; however, March turned in to a heavy precipitation month – the 4th wettest on record. The high moisture slowed crushing and delayed mining during the month. However, ore crushed, and gold ounces stacked to the pad were only 4 percent and 5 percent below plan respectively for the quarter as feed was made up from the ore and crush stockpiles.
Waste mining increased slightly as access to the Main area was initiated in mid-February. The Main area contained more fill material than expected compared to the resource block model. The additional material increased the strip ratio to 1.16 for the quarter. The majority of the fill is now removed, and ore is exposed.
For the quarter, the Company sold 10,637 ounces of gold at an average sales price of US$1,332.53 per ounce. During Q1, gold had a low of US$1,307.75 per ounce and a high of US$1,354.95 per ounce with an average price of US$1,329.28 per ounce. Rye Patch gold sales slightly beat the average gold price for the quarter.
In addition, the Company sold 5,457 ounces of silver at a realized sales price of US$16.76 per ounce.
Radio Tower Access
Since acquiring the Florida Canyon mine, the Company has been in discussions with the Federal Aviation Administration (FAA), the Union Pacific Railway (UP), Pershing County and a local radio station to remove two communication towers located on the Radio Tower portion of the Florida Canyon orebody. During Q1, the FAA confirmed the tower is in the process of being decommissioned and can be dismantled and removed in Q2. A new location for the UP tower has been selected and the permitting and design work is underway with removal expected in late Q2 to early Q3. Sites for the Pershing county communication station and local radio station have been selected and are being readied for relocation. The result of the removal of the communication towers will be access to the highest-grade portion of the Florida Canyon orebody which is anticipated in H2 2018. Initial access and site preparation will commence in Q2.
Mr. Doug Jones, Rye Patch Gold's Chief Operating Officer, a Registered Member of SME with a BSc. in Mining Engineering, 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 mining operations, resource projects and exploration upside. The combination of operations and organic growth along a major Nevada gold trend positions Rye Patch as an emerging mid-tier gold producer with tremendous value-added potential.
Rye Patch Gold recently announced an agreement to merge with Alio Gold Inc. whereby Alio Gold will acquire all of the outstanding shares of Rye Patch Gold and thereby acquire its - 100% owned Florida Canyon Mine and all of its resource and exploration projects along the Oreana and Cortez gold trends. The acquisition is expected to be completed in late May 2018. Alio Gold is a growth-oriented gold mining company, focused on exploration, development and production in Mexico. Its principal assets include its 100%-owned and operating San Francisco Mine in Sonora, Mexico and its 100%-owned development stage Ana Paula Project in Guerrero, Mexico. 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, future deliveries of gold, proposed operations of the Company including mine development, funding requirements, timeline for commercial production, future events and conditions and other statements that are not historical facts, all of which are based on assumptions and 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 the following assumptions and risk factors, some of which may be beyond the Company's control. These assumptions and risk factors include: future deliveries of gold pursuant to the forward gold price contract facility, the achievement of mine redevelopment plans and achievement of commercial production; 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 Florida Canyon mine redevelopment and achievement of commercial production 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
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