VANCOUVER, Bristish Columbia, April 29, 2019 (GLOBE NEWSWIRE) -- Rugby Mining Limited (“Rugby” or the “Company”) (TSX-V: RUG) announces that it has received notification from the Forestry Department, a division within the Colombian Ministry of the Environment, that the Company’s drilling permit application for the Cobrasco Copper Project (“Cobrasco”) has been denied. The Company is reviewing the basis for the rejection with a view to appeal the decision.
Separately the Company will now accelerate selection of a drilling contractor for a scheduled June drilling program on the Motherlode gold-copper project, Philippines (“Motherlode’). On the basis of past drilling, Motherlode has excellent potential for both epithermal vein-style gold and deeper copper-gold porphyry mineralization.
The negative Cobrasco decision was completely unexpected as the Company worked closely with Ministry officials over the last two years to address any environmental concerns as they arose. We are only now aware that the Colombian government has taken a stance that the environment in the Choco region of western Colombia is viewed as delicate. Hence, the protection of the ecosystem is now their sole concern.
Motherlode Project, Philippines
Historical mining of the high grade, epithermal style, veins at the Motherlode is estimated to have produced around 500,000 ounces of gold from 1937 through to 1953*. It was known as one of the country’s highest grade gold producers*.
The Motherlode is situated within a 15 km radius of multi-million ounce gold and gold/copper porphyry deposits and mines, which include Philex Mining Corporation’s Boyongan and Bayugo gold/copper porphyry deposits, and Manila Mining Corporation’s former gold/copper mines (Figure 1).
A photo accompanying this announcement is available at: http://www.globenewswire.com/NewsRoom/AttachmentNg/92ca2557-4e59-443a-a7b0-e3a5b6f164e3
Past drilling conducted on the Motherlode targeted the epithermal vein system, returning significant results including 15.5m at 5.92g/t gold and 3.9m at 18.11g/t gold. Rugby plans to focus on testing both extensions to the epithermal vein system and a deeper porphyry target indicated by an Induced Polarization survey. The drilling program is scheduled to commence in approximately 6 weeks, dependent on weather conditions.
Rugby’s President and CEO Mr. Paul Joyce stated: “We interpret the Motherlode deposit to overly a much larger porphyry copper-gold system. We have developed a drilling program aimed at passing through the epithermal veins into a copper-gold system similar to other high grade porphyry systems in the district. An outstanding feature of the bulk tonnage deposits in the district is that the high grades support large scale underground development.”
*This historical estimate is presented is for reference purposes only. A majority of the records on actual ore produced at Mother Lode was mostly destroyed during WW2 and by fires. However, management has examined physical evidence at site and existing geological data to confirm that the estimation is suitable for presentation.
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.
About Rugby
Rugby is an exploration company that 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. Prior companies under their management included Exeter Resource Corporation and Extorre Gold Mines Limited, which held significant projects in South America. These companies were taken over by Goldcorp and by Yamana respectively.
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 Toll-free: 1.855.688.4941 | Suite 810, 789 West Pender St. Vancouver, BC Canada V6C 1H2 info@rugbymining.com |
CAUTIONARY STATEMENT
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 at the Motherlode, prospectivity, high grade potential and potential for mineral discoveries at Motherlode, 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.
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