Rugby Mining: Drilling Permit Issued for the Mother Lode Gold Target, Philippines
TSX VENTURE: RUG
VANCOUVER, British Columbia, Jan. 23, 2019 (GLOBE NEWSWIRE) -- Rugby Mining Limited (“Rugby” or the “Company”) (TSX-V: RUG) is pleased to announce that a drilling and exploration permit has been issued for its Mabuhay project, including the Mother Lode gold target, in the Philippines. Rugby’s earlier permits, although covering a large area, specifically excluded the old gold mine area and consequently it had previously been unable to drill the Mother Lode target.
The Mother Lode, located in the centre of the broader Mabuhay project area comprising 878 hectares, is situated 12 kilometres south of Surigao City, the capital city of the province of Surigao del Norte.
The Mother Lode (formerly the “Mindanao Mother Lode Gold Mine”) is a high-grade epithermal vein system. Production from 1937 to 1953* is reported to have been some 500,000 ounces of gold at a recovered grade of 14 g/t. As such, the deposit was considered one of the Philippines’ highest grade gold producers*.
The Mother Lode vein system was mined over 765 metres (“m”) in length and to a vertical depth of 245m. Both the strike and depth extensions are the subject of Rugby’s interest in the area.
Although numerous holes have been drilled into the vein system since mining commenced, more recent post mining drilling by Pelican Resources, around 2005, targeted both lateral and depth extensions to the Motherlode Vein System. Better results from previous drilling, which reflect down hole widths (and therefore not true widths), included**:
Rugby proposes to continue to test extensions to this attractive vein system using these drill intercepts as a guide to potential vein extensions.
Paul Joyce, Rugby’s President and CEO stated, “Significant time and effort over several years has finally paid off for this project. The intriguing results reported by Pelican clearly warrant follow up drill testing.
“Plans are now underway to diamond drill the Mother Lode area targeting both the high-grade epithermal veins and the deeper gold-copper porphyry.”
Regarding the Cobrasco copper project in Colombia, Mr. Joyce commented “We continue to await a drilling permit on Cobrasco. We had been optimistic that the permit would be received before Christmas however with personnel changes in the relevant government department earlier in January, we are now expecting approval during the quarter.”
Rugby has an option to earn 80% of the Mabuhay project by making staged payments, incurring committed expenditures and by completing a pre-feasibility study.
*This historical estimate is presented for reference purposes only. A majority of the records on actual ore produced at Mother Lode were destroyed during WW2 and by later fires. Management has examined physical evidence at the site and available geological data to confirm that the estimation is suitable for presentation.
**The Company will be required to carry out a further assessment of previous exploration results, including drilling, conducted by the previous operator. The Company believes the data are suitable to report in this news release for informational reference only.
Paul Joyce, Rugby’s Chief Executive Officer, Director 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 having 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.
|Jon Hermanson, VP, Corporate Development
Tel: 604.688.4941 Fax: 604.688.9532
|Suite 1660, 999 West Hastings St.
Vancouver, BC Canada V6C 2W2
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 timing of drilling programs, prospectivity, high grade potential and potential for mineral discoveries, the style or occurrence of the mineralization 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. In addition the Company holds certain of its projects under option agreements, which require expenditure and/ or drilling requirements in order to maintain its interest. Should the Company not be able to meet its obligations or renegotiate the agreements it will lose its rights under the option agreement. 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 the Philippines and 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 28, 2018 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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