Rugby to Drill San Antonio Project
VANCOUVER, British Columbia, May 02, 2018 (GLOBE NEWSWIRE) — Rugby Mining Limited (“Rugby” or the “Company”) (TSX-V:RUG) is pleased to announce plans to initiate exploration, including drilling on its San Antonio Gold Project, Colombia (“San Antonio”).
San Antonio is located about 80 kilometers south of Medellin and 7 kilometres north east from the Marmato Gold Project (M+I: 3.8 million ozs gold and Inferred: 4.2 million ozs gold)1 in the mid-Cauca gold district. The Company considers San Antonio to be geological similar to Marmato and worthy of drill testing following completion of an induced polarized (“IP”) geophysical survey.
Rugby has reviewed historical project data, conducted comprehensive sampling and completed geological mapping on the project. That work has confirmed the potential for a large gold porphyry deposit at San Antonio which was acquired as an option to purchase in October 2016.
Concurrent with the IP survey, an application for a water permit, the only remaining permit required for drilling will be finalised. Approval is expected within a few weeks.
Previous IP surveying was shallow, yet recent geological/geochemical work by Rugby strongly suggests the porphyry target is at depth.
Drilling by a previous operator tested mineralization peripheral to Rugby’s main porphyry target. That drilling reportedly intersected 500 metres (“m”) at 0.4 grams/tonne (“g/t”) gold from surface in DDH23; and 387 m at 0.2g/t gold from 87 m, including the final 50 m assaying 0.7g/t gold 2 in DDH24.
Mr. Paul Joyce, Rugby CEO stated, “San Antonio hosts a porphyry-type, multiphase sheeted and stockwork quartz vein system. The geological setting appears to be similar to a number of the most significant gold-silver deposits in the mid-Cauca Gold District.
“Importantly, we can advance an IP program at San Antonio using geophysical contractors while our team continues to focus on drill permitting the Cobrasco Copper Project.
“The drill permit application process at Cobrasco has been long and comprehensive but we are now in the final stage of review. We remain optimistic on a decision in the near future.
“To achieve our objectives some additional funds will be required. We wish to keep the amount modest, just sufficient to accomplish the San Antonio program and to continue the application process at Cobrasco.”
Rugby continues to focus on the permit application necessary for drilling its 100% owned Cobrasco Project in Choco Province, western Colombia. As part of completing the application process, a site verification visit was conducted in March 2018 by the Department of Forestry to view the drill sites selected by the Company. All other permits required to drill, including agreements with local communities and water permits are now in hand.
The 30 square kilometer (“km”) tenement includes Cobrasco North and South, which are situated approximately 100 km southwest of Medellin in the Choco porphyry copper belt. This belt represents a continuation of the very productive Chilean and Peruvian copper belts (Figure 3 below). Cobrasco hosts both outcropping porphyry style copper mineralization and high priority geochemical and geophysical targets that have never been drill tested. The dimensions of the system are large, indicating potential for the discovery of a significant copper resource.
Cobrasco is located immediately north and south of the Comita Project3, a property currently under option to Rugby.
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.
Gold Resources (as of December 31, 2017)
Measured: 388,000 ounces at 4.8 g/t gold
Indicated: 3,485,000 ounces at 2.8 g/t gold
Inferred: 4,194,000 ounces at 2.5 g/t gold
2 Drilling and assay results were reported by a previous operator and are considered historic in nature. The presented results could not be verified by Rugby, however, the Company believes the data is suitable to report in this news release for information reference only.
3 Rugby has the option, expiring in October 2018 unless extended, to earn up to a 60% interest in Comita by incurring additional expenditures of approximately US$8 million and drilling a minimum of 10,000 m on the project.
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, including Comita 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, 2017 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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