Rugby Mining Limited has received a notice 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 accepted. The company is revising the basis for the rejection with the aim to appeal the decision.
Independently, Rugby will at this time fast-track selection of a drilling contractor for a planned June drilling program on the Motherlode gold-copper project, Philippines (Motherlode). On the foundation of past drilling, Motherlode has outstanding potential for epithermal vein-style gold as well as deeper copper-gold porphyry mineralization.
The negative Cobrasco decision was totally unforeseen as Rugby worked diligently with Ministry officials over the past two years to look into any environmental apprehensions as they cropped up. The company is only just aware that the Colombian government has taken a position that the environment in the Choco region of western Colombia is regarded as fragile. Hence, the protection of the ecosystem is at present their singular concern.
Motherlode Project, Philippines
Historical mining of the high grade, epithermal style, veins at the Motherlode is estimated to have generated about 500,000 ounces of gold spanning between 1937 and 1953*. It was identified as one of the country’s maximum grade gold producers*.
The Motherlode is located within a 15 km radius of multi-million ounce gold and gold/copper porphyry deposits and mines, which comprise of Philex Mining Corporation’s Boyongan and Bayugo gold/copper porphyry deposits, and Manila Mining Corporation’s former gold/copper mines.
Past drilling carried out on the Motherlode targeted the epithermal vein system, returning substantial results including 15.5 m at 5.92 g/ton gold and 3.9 m at 18.11 g/ton gold. Rugby plans to concentrate on testing both extensions to the epithermal vein system as well as a deeper porphyry target specified by an Induced Polarization survey. The drilling program is slated to begin in approximately six weeks, based on weather conditions.
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.
Paul Joyce, President and CEO, Rugby.
Most of the records on real ore produced at Motherlode were generally destroyed during WW2 and by fires. However, management has inspected physical evidence at site and current geological data to verify that the estimation is appropriate 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 confirmed the technical information that forms the source for this press release.
*This historical estimate is presented is for reference purposes only.