VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 9, 2011) - Rugby Mining Limited ("Rugby" or the "Company") (TSX VENTURE:RUG) is pleased to report that site preparation for upcoming geophysical surveys and drilling programs has now commenced at both the Mabuhay Porphyry Project located in Surigao, north eastern Mindanao, Philippines and the Interceptor Porphyry Project, in Catamarca, Argentina.
Mabuhay Porphyry Project, Philippines
The Mabuhay Porphyry Project program will consist of +30 line kilometres of 3D-Induced Polarization ("IP") surveying intended to define porphyry style gold-copper mineralization in the immediate vicinity of the previously producing Motherlode epithermal gold mine. This historic underground mine is reported to have produced some 500,000oz of gold, although the mine-site is not the Company's exploration priority at this time. The planned diamond drilling program will consist of two phases, the first of which is scheduled to begin in April, 2011.
A contract for the geophysical work has been granted to Austhai Geophysical Consultants Limited. The survey is intended to define drill targets both in areas of known mineralization and over newly identified prospects elsewhere on the property.
The Surigao region of the Philippines has recently experienced heavy rainfall and flooding. With anticipated improvement in local weather, a track-mounted drill rig for the Phase 1 program is scheduled to be mobilized to site in early April, 2011. The initial +2000 metre drilling program will focus on testing the targets delineated by the IP survey.
Interceptor Porphyry Project, Argentina
Rugby has also commenced site preparation work on the Interceptor Porphyry Gold-Copper Project in northern Argentina. Recent modelling of historic data by Rugby's geophysical consultants Zonge Ingenieria y Geofisica (Chile) S.A. identified a number of geophysical anomalies suggestive of significant disseminated sulphide mineralization. These anomalies comprise high chargeability IP responses, as well as discrete low resistivity targets.
The main geophysical anomaly appears to be broadening to the south and further IP is planned to extend coverage in that direction. This follow up IP program is expected to commence later this month. Drill targets will be refined following 3D modelling of the new geophysical database.
Comita Project, Colombia
Rugby has now established a branch office in Medellin and has employed personnel to service the Comita Project. The consulting group Mineria and Medio Ambiente has been engaged to collect baseline social and environmental data at Comita, which is expected to be completed during February. Geochemical and geological mapping surveys are anticipated to commence next quarter, with drilling scheduled for early 2012. Previous government regional surveys have suggested that Comita hosts a significant copper gold porphyry system.
Paul Joyce, the Company's President and CEO stated, "Following Rugby's acquisition of these exceptional gold copper porphyry projects, and a financing in late 2010, the Company can now expedite both the Mabuhay and Interceptor comprehensive exploration programs. We are confident that our skilled team will be able to plan effective drill programs designed to test the mineralization potential at both Mabuhay and Interceptor. Although our drill access for Mabuhay was temporarily set back by road wash-outs, our teams are eager to commence drilling, as we are excited to see what the early results may yield."
Rugby, with a treasury of $7.8 million, is an emerging mineral resource company focussed on the discovery of large scale gold and copper projects. The management team has a track record in the successful exploration and development of major resource projects in various mining jurisdictions.
The Company recently announced an option agreement to acquire up to an 80% interest in the Mabuhay Project, located in a "mining friendly" area of the Philippines. The project is close to a number of significant projects, including the recent Mapawa gold-copper porphyry discovery. Management believes Mabuhay has excellent potential for the discovery of similar mineral systems.
Rugby has a two stage option agreement with Rio Tinto ("Rio") 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 gold-copper 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 2011, with drilling in early 2012.
The Company recently announced that it has entered into an option agreement (the "Agreement") with Miranda S.A., an Argentine company, ("Miranda") 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 targets defined by geochemical and geophysical surveys conducted by a previous operator.
Rugby has an option to acquire up to a 90% interest in the Hawkwood project which covers 427 square kilometres of prospective copper-gold and iron licences in Queensland, Australia. Eastern Iron Limited, an ASX listed company, has the right to earn up to an 80% interest in the iron ore targets by incurring defined exploration expenditures and the completion of a bankable feasibility study.
Francisco Montes, the Company's Exploration Manager 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 www.rugbymining.com
RUGBY MINING LIMITED
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.
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.
For more information, please contact
Rugby Mining Limited
604.688.4941 or Toll Free: 1.855.688.4941
Rugby Mining Limited
604.688.4941 or Toll Free: 1.855.688.4941
Rugby Mining Limited
Suite 1260, 999 West Hastings St.
Vancouver, BC Canada V6C 2W2