Rye Patch Gold (RPM.V) has once again mobilized a drill rig to drill an additional 12 holes for a total of approximately 1,500 meters at the Lincoln Hill gold project. Rye Patch will test the mineralization at Gold Ridge which is located less than two kilometers away from the Lincoln Hill resource and the company will be aiming to develop Gold Ridge as some sort of satellite deposit that could provide additional ore for the LH mining and processing operations.
We are expecting to see some interesting mineralized holes considering a previous drill program has intersected almost 20 meters of 1.24 g/t gold-equivalent as well as almost 11 meters containing 1.54 g/t AuEq. The drill program will be funded by Rye Patch’ strong treasury which saw an additional cash inflow of C$1.46M after Coeur Mining (CDM.TO, CDE) wired the Q3 royalty proceeds to Rye Patch. The company will continue to spend 10% of its royalty income on share repurchases, so it should be able to buy back approximately 1 million shares with the newest royalty cheque.
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Disclosure: The author holds a long position in Rye Patch Gold. Rye Patch is a sponsor of the website. Please see our disclaimer for current positions.
