Rugby Mining Limited: Drilling and Exploration Update
May 24 2012 - 6:30AM
Marketwired Canada
Rugby Mining Limited ("Rugby" or the "Company") (TSX VENTURE:RUG) wishes to
update the market on recent exploration activities at its Philippine, Colombian
and Argentine projects.
Rugby is cognisant of market conditions and plans to maintain a cash reserve
(currently CAN $3.2 million) sufficient to remain active and competitive. The
potentially high grade Mabuhay gold project and the very promising Comita copper
porphyry project remain as priority opportunities for the Company. Drilling is
likely to begin in the near future on the Rio Chico
gold-platinum-palladium-copper project in Argentina. The target is shallow and
can be tested quickly and inexpensively.
Mabuhay Gold Project, Philippines
The Mabuhay project in Surigao Province comprises the Motherlode high grade
epithermal gold target and a gold-copper porphyry target at depth. The Company
is awaiting a routine MPSA application approval, the timing of which is beyond
the Company's control. The expectation is an approval before year end.
The Company remains very enthusiastic about the potential of the project and is
frustrated at the administrative delay. Almost no new titles have been granted
during the past year while the exploration industry awaits a new Executive Order
for the Mining Industry. The Motherlode drilling program is planned to commence
shortly after the MPSA application approval.
Comita Copper Porphyry Project, Colombia
The Comita project covers a copper porphyry system situated in the western
cordillera of Colombia. The Company continues to work through the administrative
process necessary to conduct drilling and is advancing the community
socialisation and baseline environmental programs. Prior to drilling, the
Company is required to conduct a Consulta Previa ("CP") with the community and
obtain a forestry extraction permit. A CP is a government supervised agreement
between a company and the community that forms a basis for exploration and
development work. Certain activities related to the CP and the forestry
extraction permit application have commenced. It is anticipated that exploration
should be able to commence later in 2012.
Rugby recently acquired additional data from historical geological
reconnaissance work. These data show well defined geochemical anomalies that are
co-incident with magnetic "lows" defined in Rugby's 2011 airborne magnetic
survey. This signature is typical for many porphyry projects on a global basis.
There is no record of previous drilling on this prospective target area.
Rio Chico Gold-Platinum-Palladium-Copper Project, Argentina
The Rio Chico project is an undrilled gold-platinum-palladium-copper ("PGM")
target situated in Catamarca Province, Argentina. Drill pad and access road
construction have commenced in preparation for a shallow drilling program to
test a multi-element PGM geochemical anomaly over a 500 metre ("m") strike
length.
Within the anomaly are previously reported rock-chip sample assays as follows:
-- 0.1% copper, 1.3 g/t gold, 9.6 g/t platinum, 4.9 g/t palladium
-- 1.8% copper, 0.3 g/t gold, 0.9 g/t platinum, 1.2 g/t palladium
-- 1.5% copper, 0.2 g/t gold, 1.8 g/t platinum, 2.8 g/t palladium
Once a suitable drill contractor is selected the commencement of the drilling
will be announced on the Company's website.
Interceptor Copper-Gold Project, Argentina
The Interceptor project is a large-scale copper-gold porphyry target situated in
Catamarca Province, Argentina. The Company planned a 2,000 m drilling program to
delineate the nature and extent of the target, but due to difficult drilling
conditions and equipment limitations only 1,033 m of the planned program was
completed.
One of the three drill holes, IND-01, successfully reached the target depth and
intersected a wide zone of porphyry style mineralisation. The porphyry interval
assayed 126 m at 0.24% copper and 116 ppm molybdenum, commencing at a down-hole
depth of 29 m. Significant drill assays are shown on Table 1 below.
Drill holes IND-02 and IND-03, which were designed to test deeper geophysical
anomalies, were abandoned in fault zones before reaching the target depth. Rugby
halted the program and the drill rig was demobilised as it was unable to
satisfactorily test the geophysical targets.
Interceptor will require future drilling to delineate the true potential of the
project. The Company will defer that drilling to conserve cash for its higher
priority projects. All drill-hole details are shown on Table 2 below.
Table 1. Significant Results for the Interceptor Project Drilling
Mineralised Intercepts
------------------------------------------------------------
------------------------------------------------------------
HOLE FROM TO WIDTH Copper Gold Molybdenum
m m m % ppm ppm
------------------------------------------------------------
IND-01 29 155 126 0.24 0.05 116
Includes 35 65 30 0.44 0.05 100
------------------------------------------------------------
------------------------------------------------------------
Table 2. Drill Hole Survey Data
---------------------------------------------------------------------------
---------------------------------------------------------------------------
HOLE EAST NORTH AZIMUTH DOWN DEPTH REMARKS
DIP M
---------------------------------------------------------------------------
Terminated due to
IND-01 569800 6937450 90 -60 337.9 high water flow
Abandoned before
IND-02 569500 6937450 90 -65 414.0 target depth
Abandoned before
IND-03 570025 6937500 90 -50 281.4 target depth
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Datum: WGS84 zone 19S
Quality Control and Assurance
Assay results presented above are preliminary with no cutting of high grades.
All diamond drill core samples are split on regular 2 metre intervals or on
geological contacts and represent sawn half core. Samples were prepared at the
ALS Minerals ("ALS") and assayed at ALS, a registered (or pending registration)
ISO-9001:2008 certified laboratory. ALS is independent of Rugby.
Standard and blank samples are used throughout the sample sequence as checks for
the diamond drilling reported in this release.
Paul Joyce, a "qualified person" ("QP") within the definition of that term in
National Instrument 43-101, Standards of Disclosure for Mineral Projects, has
supervised the preparation of the technical information that forms the basis for
this news release.
About Rugby
Management has a successful record in the identification, acquisition,
exploration and development of international mining projects. The Company
treasury is CAN $3.2 million.
Mabuhay Project, Philippines: The Company holds an option to acquire up to 80%
of the Mabuhay project in Surigao Province. The Company considers the project to
have excellent potential for the discovery of both epithermal gold deposits and
gold-copper porphyry systems.
Comita Project, Colombia: Rugby holds an option to earn up to 60% of Comita, an
undrilled large scale porphyry copper-gold project in the western cordillera of
Colombia. The project was recognised during a joint German-Colombian government
sponsored exploration program over 20 years ago. No systematic exploration has
been conducted since that time.
Interceptor Project, Argentina: The Company holds an option to acquire 100% of
the Interceptor copper-gold project in "mining friendly" Catamarca Province. The
property is near the Maricunga gold belt in Chile, an established mining
district that hosts both producing gold mines and advanced stage porphyry-type
projects.
Hawkwood Project, Australia: Rugby holds an option to acquire 90% of the
Hawkwood project in Queensland. The property, covering 427 km2 is prospective
for gold, copper-gold and iron deposits. In January 2010, the Company entered
into an agreement with Eastern Iron Limited wherein that company can earn an 80%
interest in iron ore targets in the project area. To date Eastern Iron has
conducted several programs, including geophysical surveys and drilling.
For additional information you are invited to visit the Rugby Mining Limited
website at www.rugbymining.com.
RUGBY MINING LIMITED
Paul Joyce, President and CEO
CAUTIONARY STATEMENT
Certain of the statements made and information contained herein is
"forward-looking information" within the meaning of the British Colombia,
Alberta and Ontario Securities Acts. This includes statements concerning the
Company's plans at its projects, 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. 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, gold and iron 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 of mineral tenures in the
Philippines and in the sometimes ambiguous conveyancing characteristic of many
resource properties, currency risks associated with foreign operations, the
timing for 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 including those contained in its year-end financial statements for the
year ended February 28, 2011 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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