The Gold Report Interview with Philip Ker (7/30/12)

TGR: You regularly conduct site visits. Tell us about some of your recent trips.

PK: A few months back I toured Rye Patch Gold Corp. (RPM:TSX.V; RPMGF:OTCQX) in Nevada. The company is in an interesting scenario because of its current litigation with Coeur d'Alene Mines Corp. (CDE:NYSE; CDM:TSX) over some lapsed property claims that Rye Patch picked up. If Coeur d'Alene is continuing to mine the Rochester pit and is damaging Rye Patch's claims, under current mining laws in Nevada, damages done to another's claims requires three times the gross metal value taken out of the ground to be paid to the injured party. I believe Rye Patch is in a situation where it will either be taken out or awarded a substantial settlement.

TGR: You think the companies are likely to settle out of court for cash?

PK: To avoid the court battle and have the litigation result in favor of Rye Patch, I believe it's in Coeur d'Alene's best interest to settle out of court through a lump sum or just purchase the company outright. If the latter occurs, Coeur would add over 2.5 Moz gold and 32 Moz silver to its asset base plus upside from its exploration prospects in the Cortez Trend.

TGR: Rye Patch has the Wilco deposit in Nevada that it's proving up. After seeing some of the core first hand, what were your thoughts?

PK: The site visit was a great learning tool to see the size potential of not only Wilco, but the entire Oreana Trend. It's definitely in a good jurisdiction to be in for developing gold and silver projects. Wilco is a small past-producing pit, but there still remains a lot of upside and recent drilling targeted mineralized zones down dip along structurally controlled contacts. The recently updated resource proved the beauty of the beast and although low grade, an abundance of these deposits in Nevada get mined because of the simple fundamentals, infrastructure and quality personnel located in Nevada. I can see this is going to a mine someday with continued work on the property.

http://www.theaureport.com/pub/na/13998