Rugby Mining Limited ("Rugby" or the "Company") is pleased to announce that it has filed an application with the Colombian government to allow for subsurface exploration including drilling at the Cobrasco North copper-gold-molybdenum porphyry property in Colombia.
A large cohesive drill target has been identified by previously completed geochemical and geophysical programs. The application is expected to be approved by year end and in the interim certain non-drilling exploration and planning activities will continue while the application is processed.
The Company previously announced that it had completed a Consulta Previa ("CP") agreement with the local Cocomacia communities which provides exploration access to the Cobrasco concession area for a period of ten years. The CP agreement is broadly based and provides for economic assistance to the local community as well as social development programs.
The Cobrasco project is situated next to Rugby's Comita project in the Western Cordillera porphyry copper belt (Figure 1), 100 kilometers west of the City of Medellin. Cobrasco, acquired in an arm's length transaction and subject to a 1% net smelter royalty, covers 3,000 hectares within two blocks immediately to the north and south of Comita, a separate project under option to the Company.
The Cobrasco / Comita area was first explored during the 1980's by a German government (BGR) / Ingeominas reconnaissance program. That program identified extensive and strongly anomalous copper stream sediment geochemistry coincident with outcropping porphyry copper style mineralization. The zone of strong stream sediment copper anomalism extends over a district sized area of approximately eight square kilometres covering both the Cobrasco and Comita concessions (Figure 2). No drilling has been conducted to date on either project.
In 2011, Rugby completed a low level aeromagnetic survey that defined two large prominent magnetic low anomalies coincident with the historic anomalous copper geochemistry.
Francisco Montes, the Company's Exploration Manager, a "qualified person" ("QP") within the definition of that term in National Instrument 43-101, Standards of Disclosure for Mineral Projects, has supervised the preparation of the technical information that forms the basis for this news release.
Jonathan Hermanson has been appointed Chief Financial Officer for the Company. Jon has a degree in Business Administration from St. Andrews University in North Carolina and has spent 7 years in the mineral exploration industry. The Company thanks Darcy Daubaras for his services over the past four years.
Rugby, with a treasury of $3.9 million, is an emerging mineral resource company focussed on the discovery of large scale gold and copper porphyries and epithermal gold-silver projects. The management team has a track record in the successful exploration and development of major resource projects in different mining jurisdictions
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-gold targets which were recognised during a joint German-Colombian government sponsored exploration program over 20 years ago. No systematic exploration has been conducted since that time.
Mabuhay Project, Philippines: The Company holds an option to acquire up to 80% of the Mabuhay project in Surigao Province. The Company considers the project to have excellent potential for the discovery of both epithermal gold deposits and gold-copper porphyry systems. An application for an Exploration Permit ("EP") is currently being processed, however to minimise expenditures, the project will remain under care and maintenance until the EP is granted.
Hawkwood Project, Australia: Rugby holds an option to acquire 90% of the Hawkwood project in Queensland. The property, covering 427 km2 is prospective for gold, copper-gold and iron deposits. In January 2010, the Company entered into an agreement with Eastern Iron Limited wherein that company can earn an 80% interest in iron ore targets in the project area. To date Eastern Iron has conducted several programs, including geophysical surveys and drilling.
To view Figures 1 and 2, click on the following link: http://media3.marketwire.com/docs/r820p.pdf
For additional information you are invited to visit the Rugby Mining Limited website at www.rugbymining.com
RUGBY MINING LIMITED
Paul Joyce, President and CEO