Rye Patch Files Lawsuit Against Subsidary of Coeur d'Alene Mines
December 06 2011 - 8:00AM
Marketwired Canada
Rye Patch Gold Corp. (TSX VENTURE:RPM)(OTCQX:RPMGF) ("Rye Patch" or the
"Company"), through its wholly owned subsidiary Rye Patch Gold US Inc. ("Rye
Patch Gold US") filed a lawsuit against Coeur Rochester, Inc. ("CRI"), a
wholly-owned subsidiary of Coeur d'Alene Mines Corporation. The lawsuit was
filed in the Second Judicial District Court of the State of Nevada, Washoe
County, Reno, Nevada, Case No. CV11-03482. Rye Patch Gold US has asserted claims
for relief for quiet title, trespass, slander of title and injunctive relief.
Rye Patch Gold US has also asserted claims for damages which Rye Patch Gold US
may incur as a result of CRI's actions.
Rye Patch Gold US began locating its LH unpatented mining claims on October 27,
2011, and by November 21, 2011, had located and monumented more than 400
unpatented mining claims.
The lawsuit is based on CRI's claim jumping of the senior unpatented mining
claims owned by Rye Patch Gold US in Pershing County, Nevada. On August 31,
2011, CRI failed to pay the federal annual mining claim maintenance fees for
unpatented mining claims which formerly were part of the Coeur Rochester Mine in
Pershing County. Under U.S. federal law CRI's failure to pay the annual mining
claim maintenance fees caused the CRI mining claims to be forfeited and void. In
a previous case, the United States Supreme Court upheld the effect of the
federal law and confirmed that failure to comply with the annual maintenance
requirements causes an unpatented mining claim to be forfeited and void. As a
result of CRI's failure to pay the fees, on August 31, 2011, the federal public
lands were available to locate mining claims and any United States citizen or
company could enter the public lands and locate unpatented mining claims.
On November 28, 2011, Rye Patch Gold US informed CRI that Rye Patch Gold US had
located its mining claims. Subsequently, on December 2, 2011, without notice to
Rye Patch Gold US and without consent of Rye Patch Gold US, CRI began claim
jumping the mining claims of Rye Patch Gold US by attempting to locate new CRI
mining claims over the Rye Patch Gold US mining claims. Rye Patch Gold US
notified CRI that CRI was claim jumping and requested that CRI cease its
attempts to claim jump Rye Patch Gold US. CRI did not respond to this request
and it continued to attempt to locate mining claims over the pre-existing Rye
Patch Gold US senior claims. Rye Patch Gold US was compelled to commence a
lawsuit in order to protect its rights under the U.S. mining law and Nevada
statutes.
Shortly after Rye Patch Gold US filed its lawsuit, CRI filed a separate lawsuit
in the Sixth Judicial District Court in Pershing County, Nevada, Case No. CV11
11231. CRI asserts claims for relief that its junior mining claims are superior
to the senior mining claims of Rye Patch Gold US. Rye Patch Gold US denies the
allegations in the CRI complaint and intends to vigorously defend title to the
claims of Rye Patch Gold US. In its complaint, CRI admitted that it did not pay
the federal annual mining claim maintenance fees on or before August 31, 2011.
CRI also filed a motion for a temporary restraining order to prevent Rye Patch
Gold US from working on its claims, a motion which Rye Patch Gold US intends to
vigorously oppose. Without affording Rye Patch Gold US an opportunity to oppose
the motion, the court entered a temporary restraining order which is effective
until December 15, 2011 when a court hearing will be held to determine whether a
preliminary injunction should be entered during the pendency of the lawsuit. Rye
Patch Gold US intends to file a motion to dissolve the temporary restraining
order and to oppose CRI's request for a preliminary injunction.
As announced on May 18, 2010, May 11, 2009, and June 2, 2009, in respect of the
Lincoln Hill, Wilco, and Jessup projects, Rye Patch Gold's resource inventory
along the Oreana trend now totals 1,182,780 ounces of gold and gold equivalent
in the measured and indicated category plus 2,727,100 ounces of gold and gold
equivalent in the inferred category. Table 1 summarizes Rye Patch Gold's
precious metal inventory in Nevada, USA. Table 1 does not include reserves and
resources located on the 100% owned LH claims.
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Table 1: Rye Patch Gold's NI43-101 Resource Inventory(1)(5)
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Contained
Gold Silver Contained Contained Gold & Gold
Resource Tonnes Grade Grade Gold Silver Equivalent
Property Category (x1000) (g/t) (g/t) Ounces Ounces Ounces (4)
----------------------------------------------------------------------------
Wilco (2) Measured 7,526 0.69 4.595 164,000 1,111,000 186,220
Indicated 30,844 0.51 3.601 522,000 3,638,000 594,760
Inferred 121,838 0.41 5.075 1,660,000 19,871,000 2,057,420
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Jessup(2) Measured 7,775 0.51 8.745 128,000 2,184,000 171,680
Indicated 12,642 0.41 7.167 172,000 2,906,000 230,120
Inferred 4,494 0.55 7.922 77,000 1,146,000 99,920
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Lincoln Measured - - - - - -
Hill(3) Indicated - - - - - -
Inferred 17,215 0.69 17.143 380,000 9,488,000 569,760
----------------------------------------------------------------------------
Total Oreana Trend Measured & Indicated
Resources 986,000 9,839,000 1,182,780
Total Oreana Trend Inferred Resources 2,117,000 30,505,000 2,727,100
----------------------------------------------------------------------------
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(1) All resources on 100% basis. Metallurgical recoveries and net smelter
returns are assumed to be 100%. Conforms to 43-101 resource definitions;
(2) Cutoff grade for Wilco Measured and Indicated resource is reported at
0.2 g/t Au for oxide mineralisation and 1.45 g/t Au for sulphide
mineralisation. The Inferred resource cut-off grade is reported at 0.2 g/t
Au for oxide, sulphide and carbonaceous ore types; however, a higher opt Au
cut-off grade may be required to upgrade the inferred resource to the
measured and indicated resource category. Cut-off grade for Jessup is
reported at 0.2 g/t Au for oxide mineralisation and 0.34 g/t Au for
transition and sulphide mineralisation; and
(3) The Inferred resource is reported at a cut-off grade of 0.34 g/t (0.01
opt) Aueq for oxide and transitional ore types;
(4) Wilco, Jessup and Lincoln Hill resources includes Au equivalent ounces
(Aueq.); where Aueq. = (Au ozs) + (Ag ozs X $Ag/oz)/$Au/oz, for Au/oz =
$900, and Ag/oz = $18.
(5) Table 1 does not include any reserves or resources located on the 100%
owned LH claims.
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Mr. William Howald, AIPG Certified Professional Geologist #11041, Rye Patch
Gold's CEO and President, is a Qualified Person as defined under National
Instrument 43-101. He has verified the information contained in, and has
reviewed and approved the contents of, this news release.
Rye Patch Gold Corp. is exploring well-known mineral trends in Nevada - the
world's fourth-richest gold region. Starting with 150,000 inferred ounces of
gold in mid-2007, this well-funded Company now has 1.2-million ounces of gold
and gold equivalent in the measured and indicated category, plus 2.7-million
ounces of gold and gold equivalent in the inferred category. Rye Patch Gold is a
Tier 1, 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, USA. The Company's seasoned management team is engaged in acquisition,
exploration, and development of quality resource-based gold and silver projects.
Rye Patch Gold is developing gold and silver assets along the emerging Oreana
trend, located in west-central Nevada, and is exploring 66 square kilometres
along the Cortez trend near Barrick's two new gold discoveries. The Company has
established gold and silver resource milestones and time frames in order to
build a premier resource development company. For more information about Rye
Patch Gold, please visit our website at www.ryepatchgold.com.
On behalf of the Board of Directors
William C. (Bill) Howald, CEO & President
This news release contains forward-looking statements, which address future
events and conditions, which are subject to various risks and uncertainties. The
Company's actual results, programs and financial position could differ
materially from those anticipated in such forward-looking statements as a result
of numerous factors, some of which may be beyond the Company's control. These
factors include: the availability of funds; the timing and content of work
programs; results of exploration activities and development of mineral
properties, the interpretation of drilling results and other geological data,
the uncertainties of resource and reserve estimations, receipt and security of
mineral property titles; project cost overruns or unanticipated costs and
expenses, fluctuations in metal prices; currency fluctuations; and general
market and industry conditions.
Forward-looking statements are based on the expectations and opinions of the
Company's management on the date the statements are made. The assumptions used
in the preparation of such statements, although considered reasonable at the
time of preparation, may prove to be imprecise and, as such, undue reliance
should not be placed on forward-looking statements.
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