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Rye Patch Gold Corp.

TICKER: RPM:TSX.V; RPMGF:OTCQX

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.


The information provided below is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.

Expert Comments:

Brien Lundin, Gold Newsletter (Jefferson Financial) (10/9/14) "With a 3.4% net smelter royalty on the nearby Rochester silver mine, Rye Patch Gold Corp. is in the enviable position of having a steady source of nondilutive cash flow to finance exploration on its Nevadan properties. If the recent results from Gold Ridge are any indication, the company should be able to parlay that cash flow into news flow for some time to come."

Matthew Sheppard, Jacob Securities (9/16/14) "Rye Patch Gold Corp. released results from its 2014 drill program at the Gold Ridge project. . .highlighted holes include GR-17, which intersected 0.67 g/t gold and 28.5 g/t silver over 19.8m, as well as hole GR-125, which intersected 1.3 g/t gold and 12.2 g/t silver rover 10.7m. . .[the drill program] was successful in extending mineralization 500m to the north."

The Mining Report Interview with James Fraser (9/16/14) "Rye Patch Gold Corp.'s stock price hasn't done much lately, but it scores 62 in our Nevada development section. Rye Patch has several properties in Nevada, one of the best mining jurisdictions in the world. One thing we really like about the company is that it has cash flow coming from a quarterly royalty so it won't have to go back to the market anytime soon. As of our last update, Rye Patch had $7M in cash, which was second out of 11 development companies we cover in Nevada. Insiders own roughly 5% of the stock so they are well aligned with shareholders. . .Lincoln Hill is a smaller project, but it has robust economics. The IRR comes in at 53%, which is the highest of any Nevada developer we cover. The share price hasn't done much, but all around Rye Patch is a solid company." More >

Global Mining Observer (7/24/14) "Rye Patch Gold Corp.'s bright-eyed chief executive William Howald went on a Geological Society field trip in 2011 to Coeur Mining Inc.'s Rochester mine in Nevada, when he spotted a clerical error in Coeur's mining claims. Rye Patch staked the ground, notified Coeur and settled the dispute by taking a 3.4% royalty over the mine, projected to produce over 4 Moz silver this year and 30 Koz gold."

Matthew Sheppard, Jacob Securities (7/7/14) "We view Rye Patch Gold Corp.'s PEA for the Lincoln Hill project as very positive and it has driven a significant increase in our overall corporate NAV estimate for the company. Our NAV6% estimate for Lincoln Hill has increased from $1.4M ($0.01/share) up to $28.3M ($0.19/share)."

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Ben Kramer-Miller, Seeking Alpha (7/6/14) "Rye Patch Gold Corp. released a PEA showing robust economics for the Lincoln Hill project. . .I think the PEA is a game changer that adds substantial value to the company even in a pessimistic scenario. . .the company has quietly become a rarity among gold exploration stocks in that its NPV on a discounted cash flow basis exceeds its market capitalization."

The Gold Report Interview with Adrian Day (5/12/14) "One company that has good funding is Rye Patch Gold Corp. It has a good balance sheet and a royalty on Coeur Mining Inc.'s Rochester gold-silver mine in Nevada. Rye Patch can't sell that royalty at the moment but it's probably worth about $20M on its balance sheet. Rye Patch ended the year with about $8M.Basically, Rye Patch's cash plus the value of the royalty equals the market cap. All the exploration that Rye Patch is doing—three exploration projects in Nevada—comes for free. That's what I really like." More >

Brien Lundin, Gold Newsletter (Jefferson Financial) (5/1/14) "Rye Patch Gold Corp. reported that its Rochester mine generated 750 Koz Ag and 8.192 Koz Au in Q1/14. . .this will allow the company to fund ongoing exploration of the nearby properties it holds along Nevada's Oreana Trend. Having a non-dilutive source of cash at your disposal is a fantastic asset to have in today's market."

Matthew Sheppard, Jacob Securities (4/29/14) "Rye Patch Gold Corp. reported FY13 financial results: the company ended the year with CA$7.9M in cash and cash equivalents and net working capital of CA$7.6M. . .Rye Patch ended the year with a significant cash position due to the Rochester settlement and contractually was entitled to receive its first cash payment of the 3.4% royalty two weeks ago, further increasing the strength of its balance sheet."

Thibaut Lepouttre, Caesars Report (4/21/14) "Rye Patch Gold Corp. is about to receive its first royalty payment. . .it has announced an update on the production status of the Rochester mine in Nevada, operated by Coeur Mining Inc. Rochester produced approximately 750 Koz silver and almost 8.2 Koz gold during Q1/14, and Rye Patch should have received the first quarterly payment of the 3.4%net smelter royalty it holds last week. . .this is a historical moment for Rye Patch, as the royalty payments will allow the company to fund its exploration expenditures on its own properties in Nevada and to top up the treasury again."

The Gold Report Interview with Ron Struthers (3/5/14) "Rye Patch Gold Corp.'s $10M settlement from Coeur Mining was a nice deal. The company also has a net smelter royalty (NSR) from Coeur, which will generate about $8M annually for the next three years. This should enable Rye Patch to explore actively. I think the bigger story is that the company already has a 1+ Moz resource it can expand on. Its properties are located very close to producing mines. . .Nevada remains one of the lowest-cost gold jurisdictions. It's all about the heap leach and good infrastructure. If Rye Patch could deal one or two projects to next-door majors, that could reward shareholders very nicely." More >

The Gold Report Interview with Ralph Aldis (12/18/13) "Rye Patch Gold Corp. has about $9M from a $10M cash transfer it got from Coeur d'Alene Mines. The company also will have royalty streaming payments on its Rochester mine in 2014. Rye Patch is in a fine position to continue its work plan. Bill Howald is a good steward of the capital." More >

Jay Taylor, Gold, Energy & Tech Stocks (12/13/13) "While the settlement with Coeur Mining Inc. was a bit of a disappointment, a look at Rye Patch Gold Corp. as it stands post settlement suggests it presents exciting upside potential without much dilution in the near term. It currently has working capital of about $8M and it has recently rolled out projections of the 3.4% net-smelter royalty it expects to receive from the Rochester mine as part of the settlement of the claims dispute. . .the financial position strength gained from this good fortune is a positive on top of some promising gold properties that provided the initial justification for adding this name to my list. . .as I look at impending cash flows starting in 2014 combined with a currently strong balance sheet and a share price of around $0.16, it seems like an opportune time to upgrade it once again to a Buy."

The Gold Report Interview with Mike Niehuser (12/4/13) "Rye Patch Gold Corp. also has targets in the area. Rye Patch recently settled with Coeur Mining on its claims on its Rochester project. Rye Patch has about $9M in the bank, and the royalty settlement is estimated at about $32M in total. Rye Patch should start receiving payments next April. The company has a 2–3 Moz gold deposit near Rochester and has picked up additional prospective land. Shares of Rye Patch are cheap. . .it now has a resource, exploration upside and cash." More >

Brien Lundin, Gold Newsletter (Jefferson Financial) (10/24/13) "With projects located near major gold producers, any precious metals that Rye Patch Gold Corp. is able to delineate on its projects should be easily sellable. . .it's a great strategy for a junior, as it eliminates the need to finance the high costs of taking a deposit into production. Thanks to a recent settlement with Coeur d'Alene Mines that is projected to deliver about $32M to Rye Patch through the end of 2017, the company will have a steady source of funds to support its exploration efforts in Nevada."

The Gold Report Interview with Brien Lundin (9/9/13) "Rye Patch Gold Corp. had a great plan to develop a number of larger-scale, lower-grade satellite deposits in Nevada where, due to the infrastructure, resources can be produced in a hub-and-spoke type of an operation with a central mill. The key with Rye Patch is its legal dispute with Coeur Mining, in which Rye Patch restaked some claims that Coeur had let lapse. The two companies recently came to an agreement, but the agreement didn't meet the market's hopes of a buyout for Rye Patch. However, the agreement did give Rye Patch significant cash flow in the form of a $32M royalty on the disputed claims. This will limit dilution or will allow the company to explore with no drain on its capital resources for years to come. The next step for Rye Patch is to prove the viability of its resources and exploration targets. It has some walking-around money and a great management team. For a junior, $32M is extraordinary. Today, the company isn't being valued on the basis of that cash flow. Based on cash flow alone, it is a great speculative investment." More >

The Gold Report Interview with Ralph Aldis (7/24/13) "Rye Patch Gold Corp. is another junior in our portfolio. The company had property staked around Coeur Mining Inc.'s Rochester mine and finally got a settlement instead of drawing out the legal battle. Bill Howald of Rye Patch did the right thing; now he has enough cash to carry him forward for two years. He has some good prospective ground and a royalty on the Rochester mine. But Rye Patch's shares got knocked down. It's probably a great buy at this point. . .I think Bill is going to stick to his knitting. He has some good exploration prospects, and he'll be judicious. He will probably plan it to make sure he can stay afloat for the next two years and continue to do the key work." More >

The Gold Report Interview with Mike Kachanovsky (7/17/13) TGR: Rye Patch Gold Corp. is another junior operating in Nevada. It recently settled with Coeur Mining Inc. over the Rochester mine claims. What does that settlement mean for its investors?

Mike Kachanovsky: First, the settlement with Coeur injected $10M in working capital upfront for Rye Patch to move ahead. Second, it gives Rye Patch a revenue stream. The royalty part of the settlement will contribute another $28M of recurring income that Rye Patch can use to fund projects. There is about $38M in cash value from the settlement, which works out to about $0.25/share in value, on a stock trading at about $0.19/share.

TGR: In other words, if you believed in Rye Patch before it staked the Rochester claims, you should really believe in it now.

MK: Exactly. I think the sellers in Rye Patch are speculators who bought in expectation of a bigger settlement and more of an upside as the lawsuit progressed. I look at it from the other point of view: A lot of good companies are dead in the water with no access to capital. Rye Patch has now emerged as one of the best funded juniors, ready to spend on its other properties or to make acquisitions. A stock that trades at $0.19/share has a clear path to survive this downturn and to take advantage of the low-price opportunities out there. I am buying it and plan to continue to buy as long as I can get shares in this price range. More >

The Gold Report Interview with John Kaiser (7/8/13) "Rye Patch Gold Corp., headed by Bill Howald, has a number of exploration projects in Nevada. Its approach is old-fashioned: We have a target, we're going to drill for it and make a discovery. I like the company and its situation. . .Rye Patch is active in the Cortez-Battle Mountain Trend, which is where I am hopeful it will start exploring aggressively. Rye Patch has changed from a company with $700K in working capital, a number of projects and a fair number of shares outstanding, into a cash-rich junior with motivated management in a position to deliver discoveries during a bear market." More >

Morning Coffee (6/26/13) "Rye Patch Gold Inc. will get $10M in cash plus a 3.4% net smelter royalty (NSR) covering 39.4 Moz silver eq of net metal sales; in exchange, Rye Patch will transfer its mining claims involved in the Rochester mine dispute to Coeur Rochester Inc., a wholly owned subsidiary of Coeur. . .as part of the settlement, Coeur also granted Rye Patch the option to acquire Coeur's Blue Bird patented, federal mining claim. . .this claim is about 19.5 acres in size. . .Rye Patch has until 10 days after closing to exercise the option to acquire Blue Bird."

Brien Lundin, Gold Newsletter (Jefferson Financial) (6/1/13) "Rye Patch Gold Corp. has reported some interesting surface sampling results from ongoing work on the Lincoln Hill and Independence Hill zones. . .the Looney mine's mineralization was traced for 300m along strike and yielded a sample of quartz vein material that graded 22.87 g/t gold and 9.7 g/t silver. . .the potential for the court to award the company either the LH Claims outright or give it some substantial settlement for returning those claims to the Coeur d'Alene fold make Rye Patch a company to watch. . .the decision could result in a cash influx that would exceed the company's current market capitalization."

Ron Struthers, Struthers Resource Stock Report (4/18/13) "Rye Patch Gold Corp. has bucked the trend and remains strong."

Chen Lin, What Is Chen Buying? What Is Chen Selling? (4/16/13) "I talked to Rye Patch Gold Corp's CEO Bill Howard. . .he told me that the Nevada Supreme Court didn't have to listen to the company's case, but the justices picked it. That's very encouraging. . .if the Nevada Supreme Court deals Coeur d'Alene Mines Corp. with a big defeat, it will likely settle. . .I was told that if Coeur d'Alene takes over Rye Patch at a big premium, that would be acceptable. I like the answer. Rye Patch's market cap is only around $50–60M and Coeur d'Alene can pay a very high premium on that."

Jay Taylor, Gold, Energy & Tech Stocks (4/12/13) "With some good news from the Nevada Supreme Court starting on May 13, when Rye Patch Gold Corp. challenges the legitimacy of the 'Special Master' as it applies to the Rye Patch v. Coeur d’Alene dispute, [the company's] shares could rise considerably from that alone. In addition, with a considerable gold and silver resource from the three properties next door to the Rochester Mine and assuming a positive PEA, value underlying Rye Patch's shares is most likely substantially higher than the market is currently suggesting."

Matthew Sheppard, Jacob Securities (2/22/13) "Rye Patch Gold Corp. announced the results of its fall 2012 exploration program at the LH Claims in Nevada, [further] expanding the Mystic and South Packard Pediment zones as well as discovering a new zone, West Pediment. . .drilling in the zone to date has returned silver grades that are typically in the 5–7 g/t silver range. . .the company has been successful in selectively targeting potential zones and expanding known mineralization through drilling. We believe the latest results highlight the potential of the LH Claims."

Matthew Sheppard, Jacob Securities (2/15/13) "The close proximity of Rye Patch Gold Corp.'s Garden Gate project to Barrick's Goldrush and its projected location along trend highlight the potential value of this asset. . .we would conservatively value Rye Patch, exclusive of the LH Claims currently in dispute, at CA$0.45. This, in combination with the potential for Garden Gate Pass and a positive outcome in the Rochester litigation, highlights the upside for Rye Patch. . .we reiterate our Speculative Buy rating and CA$0.90 target."

The Gold Report Interview with Brent Cook (1/4/13) "Rye Patch Gold Corp. is making a bet that the mining law of 1872 holds up. I think it will, but it's going to be a long legal battle. Coeur d'Alene has a plan of operation with the Bureau of Land Management that it believes gives it priority over claims that it failed to keep current. However, if a company does not keep its claims up to date in the U.S., those claims are open to staking. It is clear to me what the end results should be but we are dealing with a David and Goliath scenario." More >

Matthew Sheppard, Jacob Securities Inc. (11/9/12) "Rye Patch Gold Corp. expects to prepare a PEA, which would contemplate what a consolidated operation from Lincoln Hill, Wilco and Gold Ridge might look like. A central processing location would be considered, which could take the shape of a simple heap leach with a stockpile of ore for toll milling or a complete milling operation on site. . .we believe that this will help to demonstrate the real scale that the company has already built and help investors evaluate the potential for a single operation. . .we reiterate our Speculative Buy rating."

The Gold Report Interview with Vikas Ranjan (11/9/12) "At the top of the list is Rye Patch Gold Corp., a Nevada junior. It has been in the news frequently over a legal case that is going on with Coeur d'Alene Mines Corp. and a subsidiary, over the Rochester claims. Coeur failed to pay its annual fees for these claims on time and the land became open for staking, which Rye Patch did. Now Coeur is claiming that it went back and overstaked those and that it was just an oversight and it still has legal right to them, which Rye Patch is obviously disputing. If Rye Patch wins this case, we believe that it will have access to huge resource and reserves on those claims. But, that's just one piece of opportunity for Rye Patch.

Rye Patch has several other opportunities, including a big land package on the Cortez Trend in Nevada. It has a 100%-owned project called Garden Gate Pass on Cortez and also a big land package and joint venture with Barrick Gold Corp. and McEwen Mining Inc. called the Patty project that it's exploring as well. It has more advanced projects on the Oreana Trend called Wilco and Lincoln Hill with total resources of close to 3.2 Moz in the NI 43-101 category. Most of that is in the Measured and Indicated category, defined mainly in two open pits on Wilco and one on Lincoln Hill. Defined resources within a constrained pit are very significant for a junior company. We really like that play and think it's undervalued. If the legal case goes in its favor, that will be a significant catalyst for the stock and a bonus to everything else it has going for it. . .regardless of the legal case's outcome, I think it's undervalued." More >

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