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Rugby Mining Begins Drilling Preparation Work at Mabuhay and Interceptor Porphyry Projects

Rugby Mining Limited (TSX VENTURE:RUG) has reported that site preparation for upcoming geophysical surveys and drilling programs has now commenced at both the Mabuhay Porphyry Project located in Surigao, north eastern Mindanao, Philippines and the Interceptor Porphyry Project, in Catamarca, Argentina.

Mabuhay Porphyry Project, Philippines

The Mabuhay Porphyry Project program will consist of +30 line kilometres of 3D-Induced Polarization ("IP") surveying intended to define porphyry style gold-copper mineralization in the immediate vicinity of the previously producing Motherlode epithermal gold mine. This historic underground mine is reported to have produced some 500,000oz of gold, although the mine-site is not the Company's exploration priority at this time. The planned diamond drilling program will consist of two phases, the first of which is scheduled to begin in April, 2011.

A contract for the geophysical work has been granted to Austhai Geophysical Consultants Limited. The survey is intended to define drill targets both in areas of known mineralization and over newly identified prospects elsewhere on the property.

The Surigao region of the Philippines has recently experienced heavy rainfall and flooding. With anticipated improvement in local weather, a track-mounted drill rig for the Phase 1 program is scheduled to be mobilized to site in early April, 2011. The initial +2000 metre drilling program will focus on testing the targets delineated by the IP survey.

Interceptor Porphyry Project, Argentina

Rugby has also commenced site preparation work on the Interceptor Porphyry Gold-Copper Project in northern Argentina. Recent modelling of historic data by Rugby's geophysical consultants Zonge Ingenieria y Geofisica (Chile) S.A. identified a number of geophysical anomalies suggestive of significant disseminated sulphide mineralization. These anomalies comprise high chargeability IP responses, as well as discrete low resistivity targets.

The main geophysical anomaly appears to be broadening to the south and further IP is planned to extend coverage in that direction. This follow up IP program is expected to commence later this month. Drill targets will be refined following 3D modelling of the new geophysical database.

Comita Project, Colombia

Rugby has now established a branch office in Medellin and has employed personnel to service the Comita Project. The consulting group Mineria and Medio Ambiente has been engaged to collect baseline social and environmental data at Comita, which is expected to be completed during February. Geochemical and geological mapping surveys are anticipated to commence next quarter, with drilling scheduled for early 2012. Previous government regional surveys have suggested that Comita hosts a significant copper gold porphyry system.

Paul Joyce, the Company's President and CEO stated, "Following Rugby's acquisition of these exceptional gold copper porphyry projects, and a financing in late 2010, the Company can now expedite both the Mabuhay and Interceptor comprehensive exploration programs. We are confident that our skilled team will be able to plan effective drill programs designed to test the mineralization potential at both Mabuhay and Interceptor. Although our drill access for Mabuhay was temporarily set back by road wash-outs, our teams are eager to commence drilling, as we are excited to see what the early results may yield."


Rugby, with a treasury of $7.8 million, is an emerging mineral resource company focussed on the discovery of large scale gold and copper projects. The management team has a track record in the successful exploration and development of major resource projects in various mining jurisdictions.

Mabuhay Project

The Company recently announced an option agreement to acquire up to an 80% interest in the Mabuhay Project, located in a "mining friendly" area of the Philippines. The project is close to a number of significant projects, including the recent Mapawa gold-copper porphyry discovery. Management believes Mabuhay has excellent potential for the discovery of similar mineral systems.

Comita Project

Rugby has a two stage option agreement with Rio Tinto ("Rio") to earn up to a 60% interest in Comita, a porphyry gold-copper project in the western cordillera of Colombia. The Comita project is a gold-copper porphyry system recognised during a joint German-Colombian exploration program over 20 years ago. No systematic exploration has been conducted since that time. Surface exploration is expected to begin in 2011, with drilling in early 2012.

Interceptor Project

The Company recently announced that it has entered into an option agreement (the "Agreement") with Miranda S.A., an Argentine company, ("Miranda") to acquire 100% of the Interceptor Porphyry Gold Copper Project ("Interceptor") in Catamarca Province, Argentina.

Interceptor is located near the renowned Maricunga gold region of Chile, an established mining district which hosts significant operating gold mines and advanced stage gold copper porphyry deposits, including the large Cerro Casale and Caspiche projects. Interceptor is drill ready with large scale targets defined by geochemical and geophysical surveys conducted by a previous operator.

Hawkwood Project

Rugby has an option to acquire up to a 90% interest in the Hawkwood project which covers 427 square kilometres of prospective copper-gold and iron licences in Queensland, Australia. Eastern Iron Limited, an ASX listed company, has the right to earn up to an 80% interest in the iron ore targets by incurring defined exploration expenditures and the completion of a bankable feasibility study.

Francisco Montes, the Company's Exploration Manager and a "qualified person" within the definition of that term in NI 43-101, has supervised the preparation of the technical information contained in this news release.

Source: Rugby Mining Limited


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