Rye Patch Gold Corp.

Rye Patch Gold Corp. is a 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, U.S. The company's seasoned management team is engaged in the acquisition, exploration and development of quality resource-based gold and silver projects. Rye Patch Gold US Inc. controls over 75 sq km (30 sq miles) along the Oreana Trend located in west-central Nevada, and is developing gold and silver resources along this emerging trend. In east-central Nevada, Rye Patch Gold US Inc. is exploring 66 sq km along the prolific Cortez Trend near Barrick's new gold discovery. The company has established gold and silver resource milestones and time frames in order to build a premier resource development company.

Expert Comments:

Ron Stewart, Dundee Capital Markets (8/17/16)
“We are initiating coverage on Rye Patch Gold Corp. with a Buy Rating and C$0.60/sh target. . . Our target is based on a 1.0x NAV multiple at DCM prices. This is a premium to developers, but a discount to traditional Jr producer multiples given RPM is ~6months from production. . . In our view, we expect to see the company producing ~60K oz/a by 2017 and this could jump to over 100K oz by 2020. . .RPM is among the most levered to gold prices, which should result in outperformance in a rising gold price environment.”

Brien Lundin, Gold Newsletter (Jefferson Financial) (7/7/16)
"Rye Patch Gold Corp. made a bold move into production by announcing its acquisition of the Florida Canyon gold mine in Pershing Country, Nevada. The company is buying the mine by paying US$15M in cash and issuing 20M Rye Patch shares to the owners of Florida Canyon. . .the company expects to reach commercial production at Florida Canyon by Q1 2017, and the economics are compelling. . .I'm very excited about this acquisition, as it has the ability to quickly catapult Rye Patch Gold into the ranks of mid-tier gold producers."

Thibaut Lepouttre, Caesars Report (6/9/16)
"Two weeks ago, Rye Patch Gold Corp. announced it entered into a binding agreement to acquire the Florida Canyon mine in Nevada, which would catapult the company into the ranks of gold producers rather than an exploration and development company. . .This should result in a re-rating of the company as Rye Patch will be free cash flow positive in the next 12 months. . .it's very important to keep in mind Florida Canyon is a fully permitted mine and even the new leach pad that has been planned for a while is 'ready to go.'"

"Last week, Rye Patch Gold Corp. announced it entered into a definitive agreement to acquire the Florida Canyon mine in Nevada from Admiral Capital, which seized the asset after the previous owner couldn't meet its debt commitments. A new PEA on the property has outlined a mine plan in which more than 600,000 oz gold could be recovered at an all-in cost of less than $900/oz for an initial investment of less than $30M. More details will obviously emerge in the next few days and weeks but at first sight this seems to be a really good deal. Rye Patch will be paying $15M in cash and issue 20M shares for the initial purchase, followed by $5M in either cash or shares when the commercial production restarts (planned in H1/17). Based on the share price of Rye Patch before the deal was announced, this means the total consideration was less than US$25M, which is less than 0.25 times the after-tax NPV of the project at $1,200/oz gold. . .acquiring an asset at less than 50% of the NPV always is accretive for one's shareholders, but what could be even more important is the fact Rye Patch will join the ranks of producers within the next 12 months; it expects to start producing gold at Florida Canyon at a rate of 75,000 oz per year from next year on. The additional cash flow will obviously also help to fund the development of the nearby Lincoln Hill project and on top of that, Rye Patch will gain a lot of experience operating a heap-leach mine that it could then use to ensure a smooth start-up at Lincoln Hill before the end of this decade." read more >

Thibaut Lepouttre, Caesars Report (5/26/16)
"Rye PatchGold Corp. has signed a definitive agreement to acquire the Florida Canyon gold mine in Nevada, and will become a gold producer overnight. . We like this deal for several reasons. First of all, it doesn’t happen very often you can pick up a fully-permitted asset with in excess of 1 million ounces of gold at 0.3 times the after-tax NPV at a conservative gold price. . . Secondly, Rye Patch will become a Nevada-based producer overnight, spitting out 75,000 ounces of gold per year at an all-in cost of less than US$900/oz."

"The main thing that caught my eye with Rye Patch Gold Corp., which is in Nevada, is it has a 3.4% net smelter royalty on Coeur Mining's Rochester mine. Given where commodity prices are today, that has given Rye Patch about $4–5M a year in revenue, which it can then use across its exploration projects. Rye Patch's main project, Lincoln Hill, is right next to the Rochester mine. It's scoped out as a small-scale operation, only about $30M to build. It has an attractive internal rate of return because while it is low grade, it does have a low strip ratio, so the economics hold up in today's gold price environment. Additionally, Rye Patch has several other exploration properties that are starting to look more interesting, including some in the Cortez Trend. Garden Gate Pass looks like it falls along strike of Barrick Gold's recent Goldrush discovery, which is a little more than 8 Moz at 11.5 g/t. Being along strike of that makes Garden Gate Pass a pretty important exploration target, as is the Patty project, a joint venture with Rye Patch, Barrick and McEwen Mining in roughly the same area. Rye Patch is following all of these recent discoveries of high grade along the Cortez Trend, in addition to the project that it already has." read more >

More Expert Comments

Experts Following This Company

Ralph Aldis, Portfolio Manager, Gold and Natural Resources – U.S. Global Investors
Barry Allan, Vice Chair of Mining Group, and Senior Mining Analyst – Mackie Research Capital
Ryan Hanley – Mackie Research Capital
Frank Holmes, Chairman – U.S. Global Investors
Thibaut Lepouttre, Editor Caesars Report
Brien Lundin, Author Gold Newsletter (Jefferson Financial)
Ron Stewart, Analyst – Dundee Capital Markets

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Investing Highlights
Developing Gold and Silver Resource Story with Exploration Success
Fully Funded and Cash Flow From a Royalty
Proven Management Working in the Top Mining Region in the World