Wilco Energy leases geothermal rights from mining co. in Nevada

Drilling on Wilco site in Nevada (source: Rye Patch Gold)
Alexander Richter 29 Jul 2010

Rye Patch Gold Corp. announces the leasing of geothermal rights on its gold project site in Nevada to non-related Wilco Energy LLC.

A gold mining company just announced that it has leased geothermal rights on its gold project site in Nevada, to a non-related geothermal development company.

In the release it says, “Rye Patch Gold Corp reports it has leased the geothermal rights on its 100% owned Wilco gold project to Wilco Energy LLC, a non-related company. Rye Patch controls geothermal rights on a portion of the Wilco property adjacent to the Colado gold/silver resource area located in sections 25 and 35 along the western portion of the Wilco property.

“While gold and silver remain Rye Patch’s focus, this is an example of how the Company is looking for innovative ways to create additional shareholder value from its property portfolio. In concert with Wilco Energy LLC, the Company will have the ability to use the information generated by the geothermal exploration program to augment and assist its gold and silver exploration program at Wilco. The successful delineation of a geothermal field would give the Wilco project the ability to capitalize on the availability and utility of ‘Green Energy’ to supply a potential mining operation as well as providing Rye Patch with royalty revenue to supplement future exploration programs in Nevada,” stated William C. (Bill) Howald, the Company’s CEO and President.

Wilco Energy LLC is leasing the geothermal rights on 1,240 acres (502 hectares) of the Wilco property for an initial rental payment covering a period of three years with increases in rental payments at four and six years. If a geothermal field is identified within the project area, Rye Patch will receive a gross proceeds royalty from the sale of electric power. Lease rental payments are creditable to the royalty. Wilco Energy LLC is obligated to spend a minimum amount on geothermal exploration within the project area before July 20, 2011. If Wilco Energy LLC is unable to complete the first year Work Commitment then Wilco Energy LLC will pay Rye Patch the difference between the amount committed and the actual amount expended. The initial term of the lease is 15 years and can be extended for an additional 10 years at Lessee’s option.

Drilling by Rye Patch as well as historic drilling in the Colado area has encountered warm to hot water in a majority of the drillholes. Temperature measurements from the Rye Patch drillhole collars have returned values in excess of 100 degrees Celsius in several drillholes. Following commencement of the geothermal exploration program, Rye Patch will keep investors apprised of significant results and milestones achieved by the program.”

Source: Company release via Marketwire