Apr 11 2016
Rugby Mining Limited ("Rugby" or the "Company") is pleased to announce it has acquired Pelican Resources Limited's ("Pelican") residual royalty interest in the Mabuhay Project, in the Philippines.
Paul Joyce, Rugby's President and CEO stated, "We are pleased to have acquired the Pelican royalty. It is our belief that Mabuhay has considerable discovery potential for further high grade epithermal mineralization and for underlying porphyry mineralization, similar to the nearby high grade gold copper porphyry projects, Boyogan and Bayugo currently owned by Philex Mining. Once exploration permits are granted, we plan to target the epithermal areas where Pelican previously encountered significant drilling results.
"Although the Mabuhay Exploration Permit ("EP") has not yet been granted, we are confident that following upcoming federal elections in May, a new administration will likely process EP applications expeditiously. To minimise expenditures, Mabuhay will remain under care and maintenance until the EP is granted."
The Mabuhay Gold Project ("Mabuhay") is well located, 12 km south of Surigao City, the capital city in the province of Surigao del Norte, Philippines. Mabuhay was a major historical epithermal vein style high-grade gold mine which was once one of the Philippines' highest grade gold producers with an estimated recovered grade of 14g/t gold. Mabuhay hosts an extensive epithermal vein system which was mined over 765m in length and to a vertical depth of 245m. Porphyry style gold-copper mineralization was intersected at depth below the epithermal veins by the previous explorer, Pelican.
Pelican completed 18 diamond drill holes into the epithermal vein system, and a number of holes intersected significant gold mineralization. Drill hole DDH11* intersected two epithermal veins grading 13.9m of 6.8g/t gold from 247m and 3.9m of 18.1 g/t gold from 302m. The hole* was abandoned in porphyry style mineralisation at 369.4m with the last 13.5m grading 2.4g/t gold and 0.59% copper. The intersections from Pelican's drilling are down hole lengths and true widths are unknown.
*The Company will be required to conduct further assessment of previous drilling. The Company believes the data is suitable to report in news release for informational reference only.
On October 5, 2010, Rugby announced that it had entered into agreements with Pelican, an ASX listed company, and All-Acacia Resources Inc. ("All-Acacia"), a Philippine company, over Mabuhay. The agreements with Pelican and All-Acacia (collectively, the "Mabuhay Agreement") granted the Company the right and option ("Mabuhay Option") to earn an 80% interest in Mabuhay.
In April 2016, Rugby purchased all of Pelican's Royalty interest in Mabuhay for AUD$10,000 and consequently, Pelican will have no remaining interest in Mabuhay. The Mabuhay Option terms relating to All-Acacia remain intact and Rugby will continue to work towards earning an 80% interest in Mabuhay.
Project Updates
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 is currently working closely with the Colombian Mining Association to foster strong relationships with stakeholders and obtain industry related advice necessary for approaching a future permit application process. The Colombian Mining Association is also working diligently with mineral exploration and mining companies, including Rugby, to promote educational information about the benefits of a developed copper industry to the people and government of Colombia. Copper is believed to be a viable future source for jobs and significant government revenues, similar to neighboring countries like Chile and Peru.
The Company has filed a temporary suspension application on both projects. Suspending mineral concessions is a common practice in Colombia and can be lifted once the Company is in a position to initiate drilling. Suspending mineral concessions preserves the time period allocated by the mining code for exploration.
The Great Northern Gold Project, Australia
Following exploration results which did not meet expectations, Rugby has relinquished its option to earn an 80% interest in the Great Northern Gold Project.
The Jessup Project, Nevada
Rugby has given notice to the concession holder that it will not proceed with an option over the Jessup Project in Nevada.
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.
Source: http://www.rugbymining.com/