Oct 20 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.
Agreement Terms
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.
Source: http://www.rugbymining.com/