Rye Patch Gold (RPM.V) has reached a new earn-in agreement on the Patty project, an exploration project on strike with Barrick’s Goldrush and Cortez Hills’ project. The original agreement called for a total amount of $2.95M to be spent in 2015 and 2016, but Rye Patch has been able to re-negotiate this agreement and spread the $2.95M out over three years instead of two.
The company has now met the new minimum spending amount of $800,000 for 2015 and will now have to spend $1M in 2016 and $1.15M in 2017 to earn its 60% stake in the property. Meanwhile, RPM has also released an update on the exploration program at Patty where three drill holes have been drilled at the Indian Creek target for a total of 1,905 meters. It looks like these holes haven’t reached their targets yet as none of the three drill holes have reached the lower-plate target horizon Rye Patch was trying to reach (see the previous image). This means RPM will have to go back to the drawing table to re-think the geological model of Patty because even when drill holes come up empty, they still provide a ton of information.
We are processing a Q&A with CEO Bill Howald, which we hope to release shortly.
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The author holds a long position in Rye Patch Gold. Rye Patch is a sponsor of the website. Please read the disclaimer
