VANCOUVER, British Columbia, June 01, 2016 (GLOBE NEWSWIRE) -- Rugby Mining Limited (“Rugby” or the “Company”) (TSX-V:RUG) is pleased to announce that it has acquired an extensive portfolio of both granted exploration concessions and applications covering approximately 845 square kilometres in Colombia. The acquisition, which includes a substantial geological database, was secured through the purchase of a subsidiary of Barrick Gold Corporation (“Barrick”).
Under the terms of the agreement, Rugby acquired 100% of the issued and outstanding common shares of the Barrick subsidiary for nominal cash consideration. No residual rights to the subsidiary or the Colombian properties were retained by Barrick.
The portfolio includes projects in the Boyacá, Lower Cauca and Bucaramanga gold regions of Colombia that are prospective for both epithermal gold and porphyry gold mineralisation. Of particular note, one project has been partially tested with 30 drill holes totalling over 14,000 metres. Most holes intersected wide intervals of significant gold mineralisation with numerous nearby targets remaining untested. Further technical information on the properties is expected to follow in the near future pending an initial review of the extensive database.
Rugby’s Chairman, Bryce Roxburgh stated, “The acquisition of the Colombian entity places Rugby in an ideal position. We now have what I consider to be an exciting drill-ready gold property plus a pipeline of early stage gold targets. The projects are well located within major gold districts and importantly, all are outside Colombia’s high altitude Paramo ecosystem where mining is restricted.
“Initially Rugby will conduct a review of the extensive geological database to identify new gold targets over the various drill ready concessions.
“Rugby’s directors are recognised for having successfully made similar acquisitions from major mining companies, viz. Exeter and Extorre (Extorre was sold to Yamana Gold). It is my belief that this acquisition provides an excellent platform for similar success, particularly in a rising gold market. This acquisition complements our undrilled porphyry projects at Cobrasco and Comita that await permitting.”
Cobrasco and Comita Projects, Colombia
Rugby owns 100% of the Cobrasco project, subject to a 1% NSR and has an option to earn up to 60% of the adjacent Comita project in western Colombia. Both projects host undrilled large scale porphyry copper-molybdenum-gold targets which were recognised during a joint German-Colombian government sponsored exploration program conducted in the mid-1980’s. No systematic exploration or drilling has been conducted since that time. The final permit required for Cobrasco drilling is outstanding and further studies are proposed.
The Company continues to work closely with the Colombian Mining Association, along with other similar mineral exploration and mining companies, to gain broad public support for a future copper industry in the country. A developed copper industry is believed to be a viable future source for jobs and significant government revenues, similar to neighboring countries like Chile, Panama and Peru.
Otways Copper Project, Pilbara Australia
Rugby has acquired mineral property concession applications over the Otways Copper Project in the Pilbara, Australia for a nominal cash consideration and a 2% NSR. The concession applications cover an area of 118 square kilometres and host the potential for copper (gold) porphyry targets. Timing for the granting is expected within the next 12 months.
Mabuhay Gold Project, Philippines
An application for an exploration permit (“EP”) is currently awaiting approval. To minimise expenditures, the project will remain under care and maintenance until the EP is granted.
Paul Joyce, Rugby’s President, CEO 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 focussed 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
|Paul Joyce, President and CEO|
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 approval of permits required for exploration, timing of drilling programs, high grade potential at the Mabuhay Project, potential for mineral discoveries on its projects 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 of mineral properties in the Philippines 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 including those contained in its year-end financial statements for the year ended February 28, 2015 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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