Rye Patch Gold (RPM-V) May 2nd 2017 has poured its first gold at the Florida Canyon mine in northwestern Nevada. The company produced 485 ounces in the pour, while residual leaching at the old Florida Canyon and Standard Gold mines has produced another 602 ounces. Mr. Howald, president and CEO, called the pour a significant milestone for his company, pouring out his excitement at becoming "Nevada's newest gold producer." He says he and his crew are now "turning their sights to realizing the tremendous potential" of Rye Patch's other projects in the area.
Rye Patch acquired the Florida Canyon project a year ago from ADM Gold Co. Ltd. for $15-million (U.S.) in cash and 20 million shares. The deposit held 76.5 million tonnes measured and indicated at 0.44 gram of gold per tonne, with another 6.8 million tonnes inferred at 1.7 grams per tonne, for a total of just over 1.5 million ounces. ADM completed a preliminary economic assessment of the project earlier this year, calculating a discounted net present value of $45.9-million (U.S.) after taxes for an eight-year, 75,000-ounce-per-year mine expected to cost just over $25-million (U.S.) to build.
Mr. Howald, who may have an aversion to round numbers, was receiving $169,998 (U.S.) in salary at last report. He also pulled in a cash bonus of $110,002 (U.S.). His current remuneration is unclear, but the company apparently cut its payments to key executives last year. This might not be the best time to seek a raise: Rye Patch jumped as high as 91 cents in 2011 but it slumped as low as 10.5 cents by late 2015. The acquisition of Florida Canyon did nudge the stock back to 47 cents last summer, but the trend for the past month has again been downward.
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