Rye Patch Gold Corp. RPM.V
Shares outstanding: 91.1 million
Capex: $22.4 million
It is extremely undervalued with 4M oz’s and a current capex of $22 million. It definitely fits into my value category as a neglected low grade project with grades running from .41 g/t in the inferred category to .69 g/t in the measured. At Wilco alone they have 2.84 million oz’s in all resource categories and now have an exciting high grade discovery on the property that is being aggressively drilled by diamond bit.
This high grade discovery has become even more prospective than previously thought as original high grade results from the 2 discovery holes were upgraded from…
· 6.1 meters grading 11.67 g/t au and
· 7.6 meters grading 2.11 g/t au
· 15.1 meters grading 54.2 g/t au including a 1.5 meter section at 504 g/t of au and
· 13.7 meters grading 7.3 g/t au...
An increase in my simple grammeter rating scale, from 71 and 16 to 818 and 100, which is a material difference.
They doubled the high grade zone width, as well as significantly increased the assay results using a different method. The reason the difference is b/c there is a lot of course, free gold in the high grade zone which results in much lower than normal results using a rc rig and fire assay methods. Using metallic screening, captures the free gold better, so with the diamond rig they will get an accurate picture. RC drilling is great for defining large shallow low grade targets, but is not recommended for high grade drilling. The high grade zone is 100m x 200m and is open along strike to the wsw.
If RPM.V can continue to expand this zone and can add a high grade component to Wilco, the market will start getting excited about RPM.V.
When you look at RPM.V, be careful not to overlook the low grade nature. This is
A lot of good things happening at RPM.V and lots of news to come over the fall and winter. Rye Patch has close to 4M oz's of gold and gold equivalent in all categories so is very cheap pointing to great value as well as drilling 12,000 meters this fall on 4 different targets. You are currently paying $5.50 an ounce of gold with significant expansion. Wilco is easily a 3 – 4 million oz deposit, if not more.
RPM.V remains a strong buy.