Rugby Provides Colombian Update
VANCOUVER, British Columbia, Nov. 07, 2018 (GLOBE NEWSWIRE) — Rugby Mining Limited (“Rugby” or the “Company”) (TSX-V: RUG) drilled one hole of a proposed two-hole program at the San Antonio project, Colombia (“San Antonio”). As the results were below expectations (see assays below) the Company has elected to terminate its option over the project. The hole had been sited to test geophysical/geochemical targets considered to represent a gold porphyry at depth.
At Cobrasco, Rugby’s 100% owned copper-molybdenum porphyry project, where drill permitting is progressing, the Company recently submitted such additional technical information as was requested by the authorities to support the application.
Although the timing for approval of the Cobrasco drilling application is uncertain, recent reports in the country indicate the government is looking to mining as part of its economic growth focus. This has been demonstrated by their recent initiative to reduce the considerable backlog of exploration applications (see below). This action supports our view that the outcome of our drilling application will be favourable.
Progress on Rugby’s Concession Applications acquired in 2016 (news release NR16-03 June 1, 2016)
The Colombian Mining Agency (Agencia Nacional de Minería) has notified Rugby that eight concession applications are progressing to the grant review stage. These concessions, covering a total 12,953 hectares, form part of the Pastora, Arboledas and El Playon projects to the north and west of the California high-grade gold district (Figure 1). Importantly the key concessions are situated below the “Páramo”, the 3,200 metre elevation level above which mining is prohibited in Colombia.
The timing of the application grants is uncertain but given current circumstances the Company is moving forward on the basis that grants will be forthcoming on a timely basis.
The most prospective of the applications covers the Pastora project where systematic sampling included 917 rock and 816 soil samples to follow up on anomalous gold stream geochemistry.
Figure 1 – Rugby Concession Applications (the red applications are progressing to the review stage)
CEO Paul Joyce stated “by terminating the San Antonio option early, our exploration team will now be able to focus on exploration and permitting of the most prospective of these titles. Unlike Cobrasco, all these projects, including Pastora, are on privately owned land and do not require drilling approvals from the Forestry Department.
“At Pastora several large (+ two kilometer) gold-silver geochemical anomalies occur with sheeted quartz veins within intrusives and metamorphic rocks, and some high-grade veins were also identified assaying up to 22.2 g/t gold and 139 g/t silver*. Pastora was delineated by a major Canadian gold mining company which conducted regional stream sediment sampling along the known Colombian gold belts and forms part of the numerous title applications and granted concessions with gold potential acquired in 2016.
“Over the coming months we plan to follow-up the most prospective areas and examine the logistics for geophysical surveying at Pastora to assist in drill targeting”.
Assay Results from the San Antonio Drilling
Only sub-economic gold mineralization was encountered in the central, potassic portion porphyry system.
Best results were:
Quality Assurance and Quality Control
All technical information for Rugby’s San Antonio project is obtained and reported under formal quality assurance and quality control (“QA/QC”) procedures and guidelines. Rugby’s procedures are designed to meet or exceed C.I.M. “Best Practices Guidelines” and National Instrument 43-101 standards of disclosure. QA/QC protocols for drill core sampling and assaying include the insertion and monitoring of appropriate reference materials (certified standards, blanks, duplicates and checks) to validate the accuracy and precision of the assay results.
All drilling samples were collected with a diamond core drilling rig using approximately three metre sample intervals following industry standard practice. ALS Laboratories Ltd. prepared the samples at their laboratory in Medellin, Colombia and assayed in Lima, Peru. Fire Assay for Au (using a 50 gram sample) with an AAS finish and multi element assays using trace level ICP analysis was carried out routinely on all samples submitted.
Paul Joyce, Rugby’s Chief Executive Officer, Director and a “qualified person” (“QP”) within the definition of that term in National Instrument 43-101, Standards of Disclosure for Mineral Projects, has verified the technical information that forms the basis for this news release.
*The Company will be required to carry out further assessment of previous exploration results conducted by the previous operator. The Company believes the data is suitable to report in this news release for informational reference only.
Rugby is an emerging mineral resource company focused on a portfolio of projects having considerable potential for significant mineral discoveries. Rugby benefits from the experience of its directors and management, a team that has either been directly responsible for world-class mineral discoveries or have been part of the management teams responsible for such discoveries.
For additional information you are invited to visit the Rugby Mining Limited website at www.rugbymining.com.
|Jon Hermanson, VP, Corporate Development
Tel: 604.688.4941 Fax: 604.688.9532
|Suite 1660, 999 West Hastings St.
Vancouver, BC Canada V6C 2W2
Certain of the statements made and information contained herein is “forward-looking information” within the meaning of the British Columbia, Alberta and Ontario Securities Acts. This includes statements concerning the Company’s plans at its projects including the expected timing of drilling programs, prospectivity, high grade potential and potential for mineral discoveries, the style or occurrence of the mineralization and drilling costs which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. In addition the Company holds certain of its projects under option agreements, which require expenditure and/ or drilling requirements in order to maintain its interest. Should the Company not be able to meet its obligations or renegotiate the agreements it will lose its rights under the option agreement. Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the effect on prices of major mineral commodities such as copper and gold by factors beyond the control of the Company; events which cannot be accurately predicted such as political and economic instability, terrorism, environmental factors and changes in government regulations and taxes; the shortage of personnel with the requisite knowledge and skills to design and execute exploration programs; difficulties in arranging contracts for drilling and other exploration services; the Company’s dependency on equity market financings to fund its exploration programs and maintain its mineral exploration properties in good standing; political risk that a government will change, interpret or enforce mineral tenure, environmental regulations, taxes or mineral royalties in a manner that could have an adverse effect on the Company’s assets or financial condition and impair its ability to advance its mineral exploration projects or raise further funds for exploration; risks associated with title to resource properties due to the difficulties of determining the validity of certain claims as well as the potential for problems arising from the interpretation of laws regarding ownership or exploration of mineral properties in the Philippines and Colombia and in the sometimes ambiguous conveyancing characteristic of many resource properties, currency risks associated with foreign operations, the timing of obtaining permits to conduct exploration activities, the ability to conclude agreements with local communities and other risks and uncertainties, including those described in each of the Company’s management discussion and analysis and those contained in its financial statements for the year ended February 28, 2018 filed with the Canadian Securities Administrators and available at www.sedar.com. In addition, forward-looking information is based on various assumptions including, without limitation, assumptions associated with exploration results and costs and the availability of materials and skilled labour. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.
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