4 million oz's of GOLD for $5.50 an oz!

Rye Patch Gold Corp. RPM.V

Share price Oct. 7/10: $0.245

Shares outstanding: 91.1 million

Capex: $22.4 million

Added to portfolio @ .175 +0.07 / +40%

I alerted subscribers to Rye Patch Gold RPM.V @ .20 on Wed. Sept. 22 nd the day it broke out after announcement of an aggressive drill program to actively pursue 2 targets with 6,000 meters of diamond drilling and another 2 targets with 6,000 m on their RC rig. RPM.V hit a high of .29 two days later but I think it is much more than just a trade. There are so many reasons why RPM.V fits into my portfolio of prospective stocks.

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

to

· 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 Nevada and the gold giants make their money off the giant low grade halo's for years, This is where the long term sustainability of a Nevada mine lies, or any mine for that fact. Not the high grade... but the low grade. High grade pockets are great mine starters that help payback period, but once all the infrastructure is in place. A mine can stay in business for a very long time at 0.5g/t gold. RPM.V has discovered a very significant high grade zone but have backed out all the course high grade gold out of the results as they are selling this as a giant low grade project. They are partners with Newmont and with Kinross being a major shareholder so you know that Wilco has very good potential if the majors are sniffing around.

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.

Happy Investing