By Big Al Rye Patch Gold announces that commercial production was achieved in December 2018
RYE PATCH GOLD ANNOUNCES FLORIDA CANYON Q4 2017 PRODUCTION • 10,470 OUNCES OF GOLD PRODUCED • 4,069 OUNCES OF GOLD PRODUCED IN DECEMBER • COMMERCIAL PRODUCTION ACHIEVED IN DECEMBER
Vancouver, British Columbia, January 9, 2018 – Rye Patch Gold Corp. (TSX.V: RPM; OTCQX: RPMGF; FWB: 5TN) (the “Company” or “Rye Patch”) reports Q4 2017 production metrics at the Company’s flagship Florida Canyon mine in Pershing County, Nevada.
Production highlights for Q4 2017 as compared to Q3 2017 and the Company’s preliminary economic assessment “Plan” (see description below) are:
Produced 10,470 ounces of gold and 5,447 ounces of silver in Q4;
Mined 2,372,000 tons of ore (30 percent above Plan);
Crushed 2,291,000 tons of ore (27 percent above Plan);
Placed 25,434 ounces of gold on the pad;
Maintained a consistent gold grade of 0.011 opt including over liner material; and
Realized a stripping ratio of 0.55 which is significantly lower than Plan.
Gold production continued its upward trend, increasing 31 percent in Q4 compared to Q3. In December, gold production was 4,069 ounces of gold and 1,996 ounces of silver. Total precious metal production for the fourth quarter was 10,470 ounces of gold and 5,447 ounces of silver.
Gold sales benefitted from a combination of selling into the forward sales contract and spot price with a realized gold price of $1,278. Silver was sold at spot price during the quarter and realized an average price of $16.65. A total of 9,532 ounces of gold and 6,756 ounces of silver were sold during the quarter.
Mining and crushing rates are now consistently outperforming the original Plan by 30 percent and 27 percent respectively. As a consequence, the crusher throughput has been increased to 750,000 tons per month of ore crushed and stacked to the South Heap Leap Pad on a go-forward-basis, representing a 25 percent increase over the original Plan. The crusher continues to demonstrate operational performance above 750,000 tons per month, and a study to determine the optimal throughput and associated capital requirements will be completed in 2018.
The waste to ore stripping ratio of 0.55 continues to be much lower than 1.47 projected in the original Plan. The mine is realizing better continuity of grade and tonnage than forecast in the block model. An average of 17 percent increase in ore tons, a 7 percent increase in gold grade, and a 25 percent increase in gold ounces as compared to the resource block model has been achieved. As a result of internal revisions to Florida Canyon’s mining plan and changes to the production sequencing, the Company will be using an average stripping ratio 0.8 as a guide for 2018 and an overall stripping ratio of 1.05 for the life-of-mine schedule.
Gold ounces placed on the pad averaged 8,478 ounces of gold placed per month in Q4. Projected recoveries of 71 percent remain consistent with gold recoveries achieved to date. Based on gold ounces stacked and gold ounces poured, …read more
Source:: The Korelin Economics Report
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