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