Rugby Mining Limited

TSX VENTURE : RUG


Rugby Mining Limited

November 14, 2012 06:30 ET

Rugby Mining Limited: Rio Chico Drilling and Exploration Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 14, 2012) - Rugby Mining Limited ("Rugby" or the "Company") (TSX VENTURE:RUG) provides an update on the recent drilling program at its Rio Chico Gold-Platinum-Palladium-Copper Project, Argentina.

A 6 hole diamond drilling program totalling 170 meters ("m") was completed to test a multi-element geochemical anomaly over a 500m strike length. The majority of holes intersected a shallow zone of copper-gold-platinum-palladium mineralisation with significant drill hole intersections as follows:

  • RCD-01: 0 to 25.0m = 25.0m of 0.9% copper, 0.2g/t gold, 0.5g/t platinum, 0.6g/t palladium
  • RCD-03: 0 to 19.0m = 19.0m of 0.8% copper, 0.2g/t gold, 0.4g/t platinum, 0.3g/t palladium
  • RCD-05: 0 to 20.1m = 20.1m of 0.9% copper, 0.3g/t gold, 0.5g/t platinum, 0.4g/t palladium

Drill hole details and assay results are shown in the table below:

Drill Hole Mineralised Intercepts

Hole From To Interval Cu Au Pt Pd
m m M % g/t g/t g/t
RCD-01 0.0 25.0 25.0 0.9 0.2 0.5 0.6
inc. 5.0 22.3 17.3 1.2 0.3 0.6 0.7
RCD-02 0.0 5.5 5.5 0.2 0.1 0.1 0.1
Inc. 4.1 5.5 1.5 0.4 0.2 0.3 0.3
5.5 16.5 No Significant Results
16.5 19.0 2.5 <0.1 0.1 0.6 0.7
RCD-03 0.0 19.0 19.0 0.7 0.2 0.3 0.3
inc. 4.9 7.2 2.3 1.1 1.1 1.2 0.9
RCD-04 No significant assays (Hole abandoned at 12.2m)
RCD-05 0.0 20.1 20.1 0.9 0.3 0.5 0.4
inc. 0.0 3.0 3.0 2.7 0.5 0.9 1.0
and 9.0 16.0 7.0 0.8 0.3 0.5 0.5
RCD-06 No significant assays (Hole abandoned at 27.48 m)

Click here for complete drill hole survey data

Paul Joyce, the Company's CEO stated, "Although initial drilling results at Rio Chico indicate the presence of a shallow zone of copper-gold-platinum-palladium mineralisation, the project will be put on hold to focus our financial resources on advancing the potentially high grade epithermal gold targets at the Mabuhay project in the Philippines and very promising Comita copper porphyry project in Colombia".

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 to this end is advancing the community socialisation, prior consultation process and baseline environmental programs. It is anticipated that certain non-drilling exploration activities will commence in the first half 2013.

Mabuhay Gold Project, Philippines

The Mabuhay project, in Surigao Province, comprises the Motherlode epithermal gold target and a gold-copper porphyry target at depth. The Company is awaiting an MPSA application approval, the timing of which is beyond the Company's control. Production sharing by the government remains under review, and reports from the Philippines indicate that it is unlikely that MPSAs will be granted in the next 12 months. The Company is reviewing the possibility of converting MPSA application to an Exploration Permit which could potentially be granted within the next six months.

Quality Control and Assurance

Assay results presented above are final 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 Labs ("ALS") and assayed at ALS, a registered 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.

Francisco Montes, the Company's Exploration Manager, 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's treasury is currently CAN $2.8 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, 2012 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.

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.

Contact Information

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

    Rugby Mining Limited
    Suite 1660, 999 West Hastings St.
    Vancouver, BC Canada V6C 2W2
    info@rugbymining.com
    www.rugbymining.com