Rye’s Florida Canyon pro­duces 1.7M t in July, Au­gust

Stockwatch Daily - - FRONT PAGE - Mr. Wil­liam Howald re­ports

RYE PATCH Gold Corp. has pro­vided the fol­low­ing up­date on op­er­a­tions at the com­pany’s flag­ship Florida Canyon mine in the state of Ne­vada.

• Mine pro­duc­tion in July and Au­gust to­talled ap­prox­i­mately 1.7 mil­lion tons, which ex­ceeded bud­geted pro­duc­tion for those months by 48 per cent.

• Main­te­nance is­sues with haulage trucks have been re­solved and all 11 785-CAT haul trucks were op­er­a­tional dur­ing July and Au­gust. Avail­abil­ity was 84 per cent in July. All load­ing equip­ment is fully op­er­a­tional. Four 785C-Cat haul trucks are ex­pected to ar­rive in Q4.

• Crushed tons ex­ceeded bud­get by ap­prox­i­mately 16 per cent for July and Au­gust with a to­tal of ap­prox­i­mately 1.36 mil­lion tons placed on the leach pad dur­ing those months.

• The grade of ma­te­rial placed on the leach pad was 13 per cent higher for the month of July than pre­dicted and at the pre­dicted grade for Au­gust. The tran­si­tion from the phase 1A pad to phase 1B is now com­plete;

• Both the acid wash cir­cuit and the re­gen­er­a­tion kiln have been on line and fully op­er­a­tional since mid-July;

• The rate of gold re­cov­er­ies is con­sis­tent with mod­elled re­cov­ery curves.

Ounces of gold pro­duced as a pro­por­tion of ounces placed on the pad have lagged be­hind the com­pany’s orig­i­nal pro­jec­tions. This is a tim­ing is­sue which re­lates to the placement of over­liner ma­te­rial (which is gold bear­ing) on the pad and is not an is­sue of grade or met­al­lur­gi­cal re­cov­ery. Over­liner is placed in sec­tions as a rolling front ahead of the ore. Leach­ing oc­curs af­ter the ore is placed on the over­liner with the lev­els of over­all re­cov­ery grad­u­ally in­creas­ing un­til the over­liner is com­pletely cov­ered with ore. For the months of July and Au­gust, over­liner was placed on phase 1B of the pad while ore was placed and leached only on phase 1A. This has re­sulted in a de­fer­ral of ounces re­cov­ered by a lag pe­riod of two to three months which pushes out the com­pany’s ex­pec­ta­tions for com­mer­cial lev­els of re­cov­ery to Q1 2018.

“Although the time lag in pro­duc­tion of gold ounces is our first bump in the road to what has been a re­mark­ably suc­cess­ful ramp-up, we have made mod­i­fi­ca­tions in our plan­ning and ex­e­cu­tion to speed up the process,” said Wil­liam Howald, Rye Patch pres­i­dent and chief ex­ec­u­tive of­fi­cer. “With min­ing and crushing out­per­form­ing ex­pec­ta­tions by a sig­nif­i­cant mar­gin, the pro­duc­tion of gold ounces is an­tic­i­pated to ac­cel­er­ate in the com­ing months to match the ton­nage placed on the leach pad.”

Com­plete pro­duc­tion re­sults for Q3 will be an­nounced by the com­pany in the first week of Oc­to­ber.

Wil­liam Howald, AIPG cer­ti­fied pro­fes­sional ge­ol­o­gist No. 11041, Rye Patch Gold’s CEO and pres­i­dent with a BSc in ge­o­log­i­cal 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 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 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.

We seek Safe Har­bor.

Ti­mothy Clive Baker, Jonathan Chal­lis, Wil­liam Carl Howald, John Mansanti, Charles Ju­lian Gor­don Rus­sell

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