Source: The Gold Report 04/11/2017
As iA Securities initiates coverage on Rye Patch, the miner receives state approval to start irrigation at the new pad at its Florida Canyon mine.
Rye Patch Gold Corp. (RPM:TSX.V; RPMGF:OTCQX) announced on March 30 that the Bureau of Mining Regulation and Reclamation has approved the commencement of irrigation on the new South Heap Leach Pad of the Florida Canyon mine in Nevada.
According to the company, “mining, crushing and loading of the South Pad are ramping up and are nearing 70% of the forecast production rate coming into the end of the first quarter.” The first gold pour is expected this month and commercial production is expected to commence by mid-2017.”
On April 5 iA Securities initiated coverage on Rye Patch with a Buy recommendation. Analyst George Topping noted that the Florida Canyon project “has been redeveloped for commercial production, at a cost of US$29M, which began spraying in late March 2017. The property includes a 1.1 Moz Au M&I oxide resource that is expected to be expanded through additional exploration of the area. All infrastructure needed for the mine is on site, including power, water, transportation, and manpower.”
Topping recounted progress at the project, writing that the “majority of the tasks needed to restart the Florida Canyon Mine have been completed. The fleet has been refurbished, the first cell of the SHLP pad has been built, the 20K tpd crusher has been moved and upgraded, the pads have been loaded and stacked, and mining and leaching has commenced, with the first blast in November 2016.”
The analyst noted that the Florida Canyon project, based near Reno, Nevada, “would make a good ‘tuck in acquisition’ for Newmont, Kinross, …read more