RUGBY EXPANDS EXPLORATION COVERAGE AT EL ZANJON GOLD-SILVER PROJECT, ARGENTINA
Vancouver, B.C., Feb. 01, 2022 (GLOBE NEWSWIRE) -- Rugby Mining Limited (“Rugby” or the “Company”) (TSX-V: RUG) is pleased to report that in February, geochemical sampling on its El Zanjon epithermal gold-silver project in the Deseado Massif of Patagonia will be expanded to cover new target structures. Elsewhere at the Salvadora silver-copper project in Chile, field work has resumed after a one week delay due to a weather-related road closure.
A recently extended ground magnetic survey at El Zanjon outlined multiple new northwest trending magnetic features (lows), several of which bisect a prominent circular magnetic high some 10 kilometres (“km”) in diameter. The Company believes the magnetics show striking similarities to the Cerro Vanguardia vein system located 30 km northwest on the same structural corridor (Figure 1).
Figure 1 Interpreted Structural Model (after Scott and Sharpe, CODES Cerro Vanguardia report, 2002)
Mr. Glen van Kerkvoort, Chief Technical Officer commented, “The circular magnetic anomaly may represent a caldera or deeper intrusive (Figure 2), which is a similar model to the Cerro Moro and Cerro Vanguardia gold-silver systems. The linear northwest magnetic lows are analogous to magnetic features within those systems where hydrothermal fluids have altered the vein host rocks. Geochemical sampling will now be extended to cover these new features.”
Mr. van Kerkvoort continued, “The opportunity for Rugby is the discovery of a complete mineral field, not just the odd vein within a field controlled by a number of explorers. The challenge we are meeting is the almost complete cover by a veneer of recent sedimentary cover. Our sampling is revealing gold and pathfinder element “leakage” through the cover rocks with such leakage coinciding with favourable structures (Figure 3). We have applied to the Provincial Government for a drilling permit on the project.”
Figure 2 El Zanjon Ground Magnetics (RTP)
Previous low level geochemical sampling has delineated multiple gold and silver targets along well-defined structures identified by earlier magnetic surveying. Many of these potential vein structures have distinct bends or flexures where mineralising fluids may concentrate. In February, approximately 220 samples will be taken along new structures defined by the recently completed magnetic survey (Figure 3). In addition, the Company has submitted a government required drill permit application. Approval of that permit is anticipated in Q3-Q4.
Rugby is targeting major flexures within fault structures extending south from the Cerro Vanguardia mine to El Zanjon (Figure 1). Host rocks are the prospective Chon Aike formation which host the major high-grade gold-silver epithermal orebodies in Santa Cruz Province. The favorable host rocks are extensively gravel covered within this tenement package, and low-level geochemical techniques are utilized to see leakage from potential orebodies at depth. Samples were assayed for 61 elements using ultra-sensitive Ionic Leach by ALS (Vancouver). Gold values range from 0.02 to 2.3 ppb and silver values range from 0.9 to 70.3 ppb (Figure 3). An area of highly anomalous arsenic (max 1,195 ppb), molybdenum (max 1,420 ppb) and mercury (max 4.4 ppb) with coincident anomalous gold and silver assays was defined near the centre of the property. Sampling methodology and data analysis are described below*.
Figure 3 Low level silver soil geochemical sampling sites/values superimposed on magnetics (RTP)
Magnetic profiling has shown the depth to the underlying Chon Aike host rock. The profiles also show major steeply dipping structures (Figure 4).
Paul Joyce, Rugby’s Chief Operating Officer, 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.
* Sampling Methodology
- The soils were sampled following ALS laboratories sampling instructions.
- All site locations were recorded as WGS84, UTM Easting and Northing coordinates Zone 19 using a hand-held Garmin eTrex® 20.
- Samples were collected from 10 cm to 20 cm below the surface.
- A 120 gram sample was collected and placed in a Ziplock plastic bag with the sample number permanently marked on the bag.
- The bag was folded over to remove most of the air and sealed, then placed in another plastic bag again removing as much air prior to sealing.
- Jewelry was removed and only plastic and wooden implements were used.
- All samples were placed in plastic boxes and dispatched to ALS (Vancouver) for Ionic Leach analysis by ME-MS23™ method.
- Laboratory duplicate samples were included in the analysis
Data Analysis
- The geochemical data were imported into the project’s database for geostatistical analysis, determination of correlation and geochemical mapping.
- The dataset was filtered by soil type and grouped in Sand and Gravel (SG) or Tertiary (TR) to analyse them independently.
- Geostatistics were calculated using Discover software for the sub-dataset Ag, As, Au, Cd, Cu, Fe, Hg, Mo, Pb and Sr.
- The percentiles were then used to prepare accurate geochemical thematic maps with the objective of distinguishing anomalies.
About Rugby
Rugby is an exploration company conducting “discovery stage” exploration on targets in Chile, Colombia, Argentina, the Philippines and Australia. The Company’s current focus is the potential discovery of a high-grade silver-copper-gold deposit at the Salvadora Project in Central Chile’s El Indio Gold Belt. Rugby also controls a portfolio of gold projects and/or applications in Colombia that do not require forest extraction permits. These projects are proceeding through the grant process at present.
Rugby benefits from the experience of its directors and management, a team that has either been directly responsible for world-class mineral discoveries or have been part of the management teams responsible for such discoveries. Prior companies under their management included Exeter Resource Corporation and Extorre Gold Mines Limited, which held significant projects in South America. These companies were taken over by Goldcorp (Newmont) and Yamana respectively.
For additional information you are invited to visit the Rugby Mining Limited website at www.rugbymining.com.
Rob Grey, VP, Corporate Communications
Tel: 604.688.4941 Fax: 604.688.9532 Suite 810, 789 West Pender St.
Toll-free: 1.855.688.4941 Vancouver, BC Canada V6C 1H2
info@rugbymining.com
Certain of the statements made and information contained herein is “forward-looking information” within the meaning of the British Columbia, Alberta and Ontario Securities Acts. This includes statements concerning the Company’s proposed exploration plans for the Salvadora project in Chile, progress on obtaining approval for its exploration concession applications in Colombia, the expected timing of drilling and/or geophysics programs, budgeted costs to conduct exploration programs including drilling, high grade potential and potential for mineral discoveries at its projects and the style or occurrence of the mineralization which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. The Company holds certain of its projects, including Salvadora, under option agreements, which require annual cash payments, expenditure and/ or drilling requirements in order to maintain its interest. Should the Company not be able to meet its obligations or renegotiate the agreements it will lose its rights under the option agreement. Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the effect on prices of major mineral commodities such as copper and gold by factors beyond the control of the Company; events which cannot be accurately predicted such as political and economic instability, terrorism, environmental factors and changes in government regulations and taxes; the shortage of personnel with the requisite knowledge and skills to design and execute exploration programs; difficulties in arranging contracts for drilling and other exploration services; the Company’s dependency on equity market financings to fund its exploration programs and maintain its mineral exploration properties in good standing; political risk that a government will change, interpret or enforce mineral tenure, environmental regulations, taxes or mineral royalties in a manner that could have an adverse effect on the Company’s assets or financial condition and impair its ability to advance its mineral exploration projects or raise further funds for exploration; risks associated with title to resource properties due to the difficulties of determining the validity of certain claims as well as the potential for problems arising from the interpretation of laws regarding ownership or exploration of mineral properties in the Philippines, Argentina, Chile and Colombia and in the sometimes ambiguous conveyancing characteristic of many resource properties, currency risks associated with foreign operations, the timing of obtaining permits to conduct exploration activities, the ability to conclude agreements with local communities and other risks and uncertainties, the ongoing effects of the COVID 19 pandemic and including those described in each of the Company’s management discussion and analysis and those contained in its financial statements for the year ended February 28, 2021 filed with the Canadian Securities Administrators and available at www.sedar.com. In addition, forward-looking information is based on various assumptions including, without limitation, assumptions associated with exploration results and costs and the availability of materials and skilled labour. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
