Rye Patch Files Lawsuit Against Subsidary of Coeur d'Alene Mines
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 6, 2011) - Rye Patch Gold Corp. (TSX VENTURE:RPM)(OTCQX:RPMGF) ("Rye Patch" or the "Company"), through its wholly owned subsidiary Rye Patch Gold US Inc. ("Rye Patch Gold US") filed a lawsuit against Coeur Rochester, Inc. ("CRI"), a wholly-owned subsidiary of Coeur d'Alene Mines Corporation. The lawsuit was filed in the Second Judicial District Court of the State of Nevada, Washoe County, Reno, Nevada, Case No. CV11-03482. Rye Patch Gold US has asserted claims for relief for quiet title, trespass, slander of title and injunctive relief. Rye Patch Gold US has also asserted claims for damages which Rye Patch Gold US may incur as a result of CRI's actions.
Rye Patch Gold US began locating its LH unpatented mining claims on October 27, 2011, and by November 21, 2011, had located and monumented more than 400 unpatented mining claims.
The lawsuit is based on CRI's claim jumping of the senior unpatented mining claims owned by Rye Patch Gold US in Pershing County, Nevada. On August 31, 2011, CRI failed to pay the federal annual mining claim maintenance fees for unpatented mining claims which formerly were part of the Coeur Rochester Mine in Pershing County. Under U.S. federal law CRI's failure to pay the annual mining claim maintenance fees caused the CRI mining claims to be forfeited and void. In a previous case, the United States Supreme Court upheld the effect of the federal law and confirmed that failure to comply with the annual maintenance requirements causes an unpatented mining claim to be forfeited and void. As a result of CRI's failure to pay the fees, on August 31, 2011, the federal public lands were available to locate mining claims and any United States citizen or company could enter the public lands and locate unpatented mining claims.
On November 28, 2011, Rye Patch Gold US informed CRI that Rye Patch Gold US had located its mining claims. Subsequently, on December 2, 2011, without notice to Rye Patch Gold US and without consent of Rye Patch Gold US, CRI began claim jumping the mining claims of Rye Patch Gold US by attempting to locate new CRI mining claims over the Rye Patch Gold US mining claims. Rye Patch Gold US notified CRI that CRI was claim jumping and requested that CRI cease its attempts to claim jump Rye Patch Gold US. CRI did not respond to this request and it continued to attempt to locate mining claims over the pre-existing Rye Patch Gold US senior claims. Rye Patch Gold US was compelled to commence a lawsuit in order to protect its rights under the U.S. mining law and Nevada statutes.
Shortly after Rye Patch Gold US filed its lawsuit, CRI filed a separate lawsuit in the Sixth Judicial District Court in Pershing County, Nevada, Case No. CV11 11231. CRI asserts claims for relief that its junior mining claims are superior to the senior mining claims of Rye Patch Gold US. Rye Patch Gold US denies the allegations in the CRI complaint and intends to vigorously defend title to the claims of Rye Patch Gold US. In its complaint, CRI admitted that it did not pay the federal annual mining claim maintenance fees on or before August 31, 2011. CRI also filed a motion for a temporary restraining order to prevent Rye Patch Gold US from working on its claims, a motion which Rye Patch Gold US intends to vigorously oppose. Without affording Rye Patch Gold US an opportunity to oppose the motion, the court entered a temporary restraining order which is effective until December 15, 2011 when a court hearing will be held to determine whether a preliminary injunction should be entered during the pendency of the lawsuit. Rye Patch Gold US intends to file a motion to dissolve the temporary restraining order and to oppose CRI's request for a preliminary injunction.
As announced on May 18, 2010, May 11, 2009, and June 2, 2009, in respect of the Lincoln Hill, Wilco, and Jessup projects, Rye Patch Gold's resource inventory along the Oreana trend now totals 1,182,780 ounces of gold and gold equivalent in the measured and indicated category plus 2,727,100 ounces of gold and gold equivalent in the inferred category. Table 1 summarizes Rye Patch Gold's precious metal inventory in Nevada, USA. Table 1 does not include reserves and resources located on the 100% owned LH claims.
Table 1: Rye Patch Gold's NI43-101 Resource Inventory (1)(5)
Property Resource
Category Tonnes
(x1000) Gold
Grade
(g/t) Silver
Grade
(g/t) Contained
Gold
Ounces Contained
Silver
Ounces Contained
Gold & Gold
Equivalent
Ounces (4)
Wilco (2) Measured 7,526 0.69 4.595 164,000 1,111,000 186,220
Indicated 30,844 0.51 3.601 522,000 3,638,000 594,760
Inferred 121,838 0.41 5.075 1,660,000 19,871,000 2,057,420
Jessup (2) Measured 7,775 0.51 8.745 128,000 2,184,000 171,680
Indicated 12,642 0.41 7.167 172,000 2,906,000 230,120
Inferred 4,494 0.55 7.922 77,000 1,146,000 99,920
Lincoln Hill (3) Measured - - - - - -
Indicated - - - - - -
Inferred 17,215 0.69 17.143 380,000 9,488,000 569,760
Total Oreana Trend Measured & Indicated Resources 986,000 9,839,000 1,182,780
Total Oreana Trend Inferred Resources 2,117,000 30,505,000 2,727,100
(1) All resources on 100% basis. Metallurgical recoveries and net smelter returns are assumed to be 100%. Conforms to 43-101 resource definitions;
(2) Cutoff grade for Wilco Measured and Indicated resource is reported at 0.2 g/t Au for oxide mineralisation and 1.45 g/t Au for sulphide mineralisation. The Inferred resource cut-off grade is reported at 0.2 g/t Au for oxide, sulphide and carbonaceous ore types; however, a higher opt Au cut-off grade may be required to upgrade the inferred resource to the measured and indicated resource category. Cut-off grade for Jessup is reported at 0.2 g/t Au for oxide mineralisation and 0.34 g/t Au for transition and sulphide mineralisation; and
(3) The Inferred resource is reported at a cut-off grade of 0.34 g/t (0.01 opt) Aueq for oxide and transitional ore types;
(4) Wilco, Jessup and Lincoln Hill resources includes Au equivalent ounces (Aueq.); where Aueq. = (Au ozs) + (Ag ozs X $Ag/oz)/$Au/oz, for Au/oz = $900, and Ag/oz = $18.
(5) Table 1 does not include any reserves or resources located on the 100% owned LH claims.
Mr. William Howald, AIPG Certified Professional Geologist #11041, Rye Patch Gold's CEO and President, is a Qualified Person as defined under National Instrument 43-101. He has verified the information contained in, and has reviewed and approved the contents of, this news release.
Rye Patch Gold Corp. is exploring well-known mineral trends in Nevada - the world's fourth-richest gold region. Starting with 150,000 inferred ounces of gold in mid-2007, this well-funded Company now has 1.2-million ounces of gold and gold equivalent in the measured and indicated category, plus 2.7-million ounces of gold and gold equivalent in the inferred category. Rye Patch Gold is a Tier 1, Nevada-focused and discovery-driven company seeking to build a sizeable inventory of gold and silver resource assets in the mining friendly state of Nevada, USA. The Company's seasoned management team is engaged in acquisition, exploration, and development of quality resource-based gold and silver projects. Rye Patch Gold is developing gold and silver assets along the emerging Oreana trend, located in west-central Nevada, and is exploring 66 square kilometres along the Cortez trend near Barrick's two new gold discoveries. The Company has established gold and silver resource milestones and time frames in order to build a premier resource development company. For more information about Rye Patch Gold, please visit our website at www.ryepatchgold.com.
On behalf of the Board of Directors
William C. (Bill) Howald, CEO & President
This news release contains forward-looking statements, which address future events and conditions, which are 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 numerous factors, some of which may be beyond the Company's control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, 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.
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.
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