Rugby Mining Limited reported that, depending on TSXV approval, it has signed an option agreement deal to earn up to 100% of the El Zanjon Gold and Silver Project (“El Zanjon”) in Santa Cruz Province, Argentina.
El Zanjon spans roughly 600 km2 within the prolific Deseado Massif gold and silver district. It is located near such world-class mines as Cerro Vanguardia (AngloGold Ashanti), Cerro Negro (Newmont-Goldcorp), and Cerro Moro (Yamana).
We are excited to be back in the Deseado Massif in Santa Cruz. Extorre Gold Mines, a former company in which Yale Simpson and I were Co-Chairmen, discovered the exceptionally high-grade Cerro Moro gold-silver deposit in Santa Cruz. Extorre was subsequently sold to Yamana Gold Mines for CAD$420 million.
Bryce Roxburgh, President and CEO, Rugby
He continued, “We will be using members from our former Argentine team who were responsible for identifying and evaluating the Cerro Moro deposit. With their experience and skills, I believe we have a unique advantage in identifying new structures as well as drilling the potentially mineralized structures already identified on the property. As at Cerro Moro, the EL Zanjon structural setting is extensive and represents a compelling opportunity for the discovery of high-grade gold-silver mineralization.”
Independently, academic studies have projected a likely repetition of the Cerro Vanguardia (CV) structural model to the south, near Zanjon. The analysis is based on the east-west oriented CV veins, south of the mining area, which stretch in a northwesterly direction.
El Zanjón has similar massive northwest striking structures based on a historic generally spaced airborne magnetic survey. The terrain, geophysical features, and elevation of Cerro Moro are also manifest at El Zanjon underneath a relatively thin veneer of recent cover rocks.
Rugby plans to progress the project firstly with a ground-based geophysical program to better establish the structures. Drilling is projected to take place once targets are refined.
Rugby has a minimum exploration commitment of CAD$50,000 which will encompass more thorough ground magnetic surveys to delineate promising drill targets. So as to earn 100% of El Zanjon, Rugby will have the choice of incurring staged exploration expenditures totaling CAD$3.65 million over 6 years including finishing studies to Pre-Feasibility standards. Rugby will also cover tenure payments amounting to CAD$15,000 yearly. The vendors will keep a 2%NSR.
Motherlode Drilling Update
The present drilling program at the Motherlode Gold Copper Project, Surigao del Norte, Philippines, is moving ahead smoothly. Initial drilling assay results are expected in September 2019.
Paul Joyce, Rugby’s Chief Operating Officer, Director and a “qualified person” (“QP”) within the stipulation of that term in National Instrument 43-101, Standards of Disclosure for Mineral Projects, has confirmed the technical information that forms the core for this press release.