Rugby Mining Field Work Continues-San Antonio Gold Project Optioned
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 19, 2016) - Rugby Mining Limited ("Rugby" or the "Company") (TSX VENTURE: RUG) is pleased to announce that the field program in Colombia has identified the San Antonio gold project ("San Antonio") for inclusion in the property portfolio. Subject to TSX Venture Exchange approval, the Company has entered into an option to acquire a 100% interest in a granted mining concession of 1,664 hectares.
Rugby has negotiated an attractive option that allows the Company to assess the merits of the project quickly and inexpensively. It is anticipated that because San Antonio is a granted concession, it can be drill ready by Q1 2017.
San Antonio is situated approximately 80km south of Medellin in the Mid-Cauca Gold District. It was visited due to its proximity to one of the properties recently acquired (announced June 1, 2016), supported by specific information within the large database being reviewed.
San Antonio hosts a porphyry type, multiphase sheeted and stockwork quartz vein system. Management considers the geological setting to be similar to a number of the most significant gold-silver deposits in the Mid-Cauca Gold District.
Rugby CEO Paul Joyce stated, "San Antonio was discovered when our geologists were investigating a nearby Tertiary mineralized porphyry occurrence on a Rugby concession application. It appeared that the porphyry system was continuing into the adjoining San Antonio concession.
"Subsequent follow-up identified a potentially large, un-drilled gold porphyry target exposed on a prominent hill. The scale of the target is impressive, appearing to be some 1,000m by 800 metres in size. It is surprising that such a target is undrilled. Importantly, there are no small scale gold mining activities currently being conducted at the site."
The Company will continue to evaluate its' extensive Colombian portfolio to identify the highest priority gold targets. Other opportunities will likely be generated from the large database.
The option agreement allows for a 60 day period to conduct legal and technical due diligence. Rugby will then have the option to pay the private Colombian vendor a total of US$750,000 in staged payments over a five-year period to earn 90% of the project. At that point, Rugby will then have an additional option to acquire the remaining 10% interest by paying US$1,000,000 in staged payments over two years for a total 100% interest. Rugby also has a right of first refusal to purchase the vendor's 1% NSR interest.
Francisco Montes, Rugby's Chief Geologist and a "qualified person" ("QP") within the definition of that term in National Instrument 43-101, Standards of Disclosure for Mineral Projects, has verified the technical information that forms the basis for this news release.
Rugby is an emerging mineral resource company focused on a portfolio of projects with considerable potential for significant mineral discoveries. Rugby benefits from the experience of its directors and management, a team that has either been directly responsible for world-class mineral discoveries, or have been part of the management teams responsible for such discoveries.
For additional information you are invited to visit the Rugby Mining Limited website at www.rugbymining.com
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 its projects including the expected approval of permits required for exploration, timing of drilling programs, prospectivity, high grade potential and potential for mineral discoveries and drilling costs 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 and gold 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 or exploration of mineral properties in Colombia and in the sometimes ambiguous conveyancing characteristic of many resource properties, currency risks associated with foreign operations, the timing of 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 and those contained in its financial statements for the year ended February 29, 2016 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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