Rugby Mining Limited ("Rugby" or the "Company") (TSX VENTURE:RUG)
is pleased to announce that it has entered into option agreements
to earn up to 100% interest in the Rio Chico gold-platinum-copper
project ("Rio Chico") and the Zonda porphyry gold-copper project
("Zonda") in Argentina.
Rio Chico Project
Rio Chico is located near the town of San Francisco in
south-eastern Catamarca Province, Argentina. Catamarca is a
pro-mining province that hosts significant mineral deposits
including the Alumbrera and Agua Rica mines. The property under
option covers 555 hectares. Rugby has applied for an additional
concession surrounding the project to bring the total land package
to almost 10,000 ha.
Prior to signing the agreement, Rugby conducted a due diligence
program which included rock chip sampling and reconnaissance
geological mapping. Two areas of outcrop show gold, platinum,
palladium and copper mineralization in association with ultramafic
rocks (including gabbros and amphibolites) emplaced into a
metamorphic basement of probable lower Cambrian-Precambrian age.
Mapping suggests the ultramafic rocks may extend under soil cover.
The mineralization is postulated to be of primary magmatic origin
with a late stage hydrothermal remobilization event. Zones of
mineralized breccia support the emplacement of gabbros along
prominent NW-SE fault trends.
Further work by Rugby included a 47 line kilometre ground
magnetic survey to assist in defining potential extensions of the
ultramafic sequence under soil cover. 53 rock-chip and channel
samples were collected. Significant assay results are listed on
Table 1 and sample locations shown on Figure 2.
--------------------------------------------------------------
Copper Gold Platinum Palladium
Sample Type % g/t g/t g/t
--------------------------------------------------------------
RG00166 2.0m channel 1.8 0.3 0.6 0.8
--------------------------------------------------------------
RG00167 2.0m channel 1.6 0.6 0.6 0.8
--------------------------------------------------------------
RG00168 Rock-chip 1.0 0.6 0.7 0.7
--------------------------------------------------------------
RG00169 Rock-chip 1.8 0.3 0.9 1.2
--------------------------------------------------------------
RG00171 Rock-chip 1.5 0.2 1.8 2.8
--------------------------------------------------------------
RG00173 Rock-chip 1.8 0.2 0.7 0.6
--------------------------------------------------------------
RG00175 2.0m channel 1.0 1.0 0.8 0.9
--------------------------------------------------------------
RG00182 1.2m channel 0.2 0.4 2.3 2.7
--------------------------------------------------------------
RG00187 Rock-chip 0.5 0.3 0.3 0.3
--------------------------------------------------------------
0199983 Rock-chip 0.1 1.3 9.6 4.9
--------------------------------------------------------------
Table 1 - Significant Assay Results
Agreement terms
The Agreement grants Rugby the option to acquire 100% of the Rio
Chico project by making progressive payments that total USD $1
million over a 5 year period. There are no expenditure requirements
and the agreement can be terminated by Rugby at any time without
penalty.
The Zonda Gold-Copper Porphyry Project
Rugby entered into an option agreement with Miranda S.A., an
Argentine company, ("Miranda") to acquire 100% of the Zonda
property. The Agreement is subject to TSX-V approval.
Zonda is located in western San Juan Province, a region well
known for large scale mineral deposits including Barrick's Veladero
and Pascua Lama projects, Malbex's Del Carmen Norte and Yamana
Gold's Gualcamayo project. Geologically Zonda is within the
Uspallata-Iglesia Basin of the Argentine pre-Cordillera (Figure 1).
The property lies at an average elevation of 3,000 metres with
access provided by gravel roads from the town of Rodeo 50km away.
Exploration work is possible year-round.
Modelling of historic data by Rugby's geophysical consultants
has identified a large 3 x 1.5 kilometer oval-shaped magnetic low
anomaly coincident with a low-lying, gravel covered area (Figure 3
and shown in the linked photo). The magnetic low, on the central
portion of the property, is related to a complex of extensively
altered Tertiary felsic intrusives. The country rocks are indurated
Carboniferous mudstones and greywackes that exhibit what is
postulated to be classic magnetite-destruction related to a buried
intrusive. The alteration is accompanied by quartz veining,
specular hematite, magnetite and tourmaline as veins, stockworks
and breccia matrix. Locally, gold is associated with argillic and
potassic alteration accompanied by quartz and tourmaline veining
and stockworks. Further soil and rock chip sampling including
trenching and IP work is planned prior to initiating a drill
program.
Click here for a view of Zonda:
http://www.rugbymining.com/gallery/zonda_gallery.php.
Agreement terms
The Agreement with Miranda grants Rugby a 6 year option to
acquire 100% of the Zonda property. Miranda will retain a 2% net
smelter return over the property. Rugby has an option to purchase
the royalty from Miranda. There are no minimum annual expenditure
or work commitments.
Paul Joyce, Rugby's President and CEO stated: "The Zonda and Rio
Chico projects fit well into Rugby's exploration portfolio. They
represent potentially large scale mineralized systems that are
company-maker opportunities for shareholders. Both projects can be
made drill ready at relatively low cost."
Further details of the Rio Chico and Zonda projects will be made
available on Rugby's website: www.rugbymining.com.
Francisco Montes, a "qualified person" within the definition of
that term in NI 43-101, has supervised the preparation of the
technical information contained in this news release.
About Rugby
Rugby, with a treasury of CDN $5 million, is an emerging mineral
resource company exploring for gold, silver and base metals. The
management team has a track record in the successful
identification, acquisition, exploration and development of
international mining projects.
Interceptor Project, Argentina: Rugby has an option to acquire
100% of the Interceptor porphyry gold-copper project in mining
friendly Catamarca Province. The property is located near the
Maricunga gold belt of Chile, an established mining district which
hosts significant operating gold mines and advanced stage porphyry
projects. Drilling at Interceptor is now underway where large scale
targets have been defined by geochemical and geophysical
surveys.
Mabuhay Project, Philippines: The Company has an option to
acquire up to an 80% interest in the Mabuhay Project in mining
friendly Surigao Province. The Company considers the project has
excellent potential for the discovery of both gold-copper porphyry
and epithermal type gold deposits. The property includes the former
Mindanao Mother Lode Mine, a high-grade epithermal vein style gold
mine that is estimated to have produced approximately 500,000
ounces of gold in the period 1937 to 1953. The Mother Lode Mine was
one of the Philippines' highest grade gold producers.
Comita Project, Colombia: Rugby has an option to earn up to a
60% interest in Comita, a porphyry copper-gold project in the
western cordillera of Colombia. The Comita project was recognised
as a porphyry system during a joint German-Colombian government
sponsored exploration program over 20 years ago. No systematic
exploration has been conducted since that time. Rugby recently
completed a 555 line km helicopter-borne geophysical magnetic and
radiometric survey over the project area. The survey will assist in
designing the drilling program planned for 2012.
Hawkwood Project, Australia: Rugby has an option to acquire up
to a 90% interest in the Hawkwood project which covers 427 km2 of
prospective copper-gold and iron tenements in Queensland. In
January 2010, the Company entered into an agreement with Eastern
Iron Limited wherein that company can earn up to an 80% ownership
of iron ore targets in the area. To date Eastern Iron has conducted
several geophysical surveys and a drilling program.
Rugby recently completed a geochemical sampling and
reconnaissance program at the Mary Elizabeth prospect located
within a 229 km2 area excluded from the Eastern Iron agreement.
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.
To view the figures associated with this release, please visit
the following link:
http://media3.marketwire.com/docs/RUGmaps2811.pdf.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
Contacts: Rugby Mining Limited P. Joyce President 604.688.4941
or Toll-free: 1.855.688.4941 604.688.9532 (FAX) Rugby Mining
Limited Cecil Bond Director 604.688.4941 or Toll-free:
1.855.688.4941 604.688.9532
(FAX)info@rugbymining.comwww.rugbymining.com
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