Rugby Mining Limited

July 19, 2011 06:30 ET

Rugby Discovers Gold Mineralization at Mabuhay Project, Philippines

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 19, 2011) - Rugby Mining Limited ("Rugby" or the "Company") (TSX VENTURE:RUG)(FRANKFURT:7RM) is pleased to report the results from 2 drillholes of the initial drilling program at its Mabuhay gold copper project located near Surigao, Philippines, which have intersected gold mineralization in both the epithermal and porphyry targets.

Targeting Epithermal Gold Silver Mineralization: The first drill hole (MD-001) targeted epithermal style mineralization about 450 meters ("m") southwest of the Motherlode Mine which historically produced approximately 500,000oz of gold.

MD-001 intersected a 33m interval of epithermal quartz-sulphide veins and breccia with an average grade of 1.8 g/t gold from a depth of 71m to 104m, including 2m at 11.2 g/t gold from 98m. Pelican Resources Limited previously completed 18 diamond drill holes into the epithermal vein system with significant results including 15.5m of 5.9 g/t gold and 3.9m of 18.1 g/t gold in DDH-11 which is located 580m east of MD-001.

Further drilling is planned to define the extent of the epithermal mineralization.

Targeting Porphyry Gold-Copper Mineralization: Two drill holes (MD-002 and MD-003) were located 750m and 950m northeast of MD-001 to test a chargeablity anomaly defined by a recently completed 3D Induced Polarisation ("3D-IP") survey. MD-002 was terminated at a depth of 1,007m due to difficult drilling conditions, however wide intervals of low grade copper sulphide mineralization were intersected within intrusive rocks and related breccias from 424m to 1,007m. Assays have been received for some intervals and significant results to date include:

Hole From To Width Cu Au Mo
m m m % g/t ppm
MD-002 468 618 150 0.27 0.07 112
618 732 114 Assays pending
732 975 243 0.27 0.24 88
975 1,007 32 Assays pending

Assay results for MD-003 are pending.

Paul Joyce, the Company's President and CEO stated, "The Motherlode deposit is hosted within a 1km x 2.7km possible diatreme vent, where the extensive epithermal vein system was mined over 765m in length and to a vertical depth of 245m. Mineralization occurs in epithermal quartz-sulphide veins, surrounded by zones of pervasive alteration, which is interpreted to be low-sulphidation epithermal in style with porphyry-style gold-copper mineralization at depth. Our current drilling is starting to intersect both epithermal and porphyry type mineralization adjoining the Motherlode Mine area which may indicate potential for a large mineralized porphyry to occur at depth below the old mine.

"The gold intersection in MD-001, 450m southwest of the Motherlode Mine demonstrates a larger epithermal gold potential than previously envisaged and as a result of this early drilling encouragement we are planning to extend our drilling program beyond the original 2,000m drilling budget.

"We regard the Motherlode area to be the prime target for the discovery of significant extensions to the high grade epithermal gold silver mineralization, as well as porphyry gold-copper mineralization at greater depths below the epithermals. Both epithermal and porphyry mineralization occurring in a similar manner is noted at nearby orebodies on the Surigao Peninsula. We have not yet commenced drilling these target areas closer to the Motherlode mine as we are awaiting permitting approval (area shown with blue boundaries in the diagram below) which is expected in Q4 this year.

"A second drilling campaign will follow that approval and will target both high grade epithermal mineralization and porphyry gold-copper mineralization. Vectoring from drilling suggests this area to be the prime target area for both styles of mineralization."

To view the figure associated with this press release, please visit the following link:

About Rugby

Rugby, with a treasury of $6.9 million, is an emerging mineral resource company focussed on the discovery of large scale gold and copper porphyries and epithermal gold-silver projects. The management team has a track record in the successful exploration and development of major resource projects in different mining jurisdictions

Comita Project

Rugby has a two stage option agreement with Rio Tinto to earn up to a 60% interest in Comita, a porphyry gold-copper project in the western cordillera of Colombia. The Comita project is a copper-gold porphyry system recognised during a joint German-Colombian exploration program over 20 years ago. No systematic exploration has been conducted since that time. Surface exploration is expected to begin in the second half of 2011, with drilling first half 2012.

Interceptor Project

Rugby recently announced that it had entered into an option agreement with Miranda S.A., an Argentine company, to acquire 100% of the Interceptor porphyry gold copper project ("Interceptor") in Catamarca Province, Argentina.

Interceptor is located near the renowned Maricunga gold region of Chile, an established mining district which hosts significant operating gold mines and advanced stage gold copper porphyry deposits, including the large Cerro Casale and Caspiche projects. Interceptor is drill ready with large scale porphyry copper gold targets defined by geochemical and geophysical surveys.

Paul Joyce, the Company's President and CEO and 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.

For additional information you are invited to visit the Rugby Mining Limited website at


Paul Joyce, President and CEO


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 the Interceptor, Comita, Hawkwood and Mabuhay 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 mining properties in good standing; political risk that a future government will change environmental regulations, taxes or mineral royalties in a manner that could have an adverse effect on the Company's financial condition and impair its ability to 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 sometimes ambiguous conveyancing characteristic of many resource properties, currency risks associated with foreign operations and other risks and uncertainties, including those described in each management discussion and analysis.

The Company is required to issue shares, pay option fees and complete certain work and expenditure requirements in order to maintain and earn its interest in the projects referenced above. The failure to issue such shares, pay the option fees or complete the required expenditure or work commitments could result in the loss of such project. 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.


Contact Information

  • Rugby Mining Limited
    P. Joyce
    604.688.4941 / Toll-free: 1.855.688.4941
    604.688.9532 (FAX)

    Rugby Mining Limited
    Cecil Bond
    604.688.4941 / Toll-free: 1.855.688.4941
    604.688.9532 (FAX)