Rugby Intersects Gold-Copper Porphyry at Motherlode Mine

VANCOUVER, British Columbia, Sept. 19, 2019 (GLOBE NEWSWIRE) -- Rugby Mining Limited (“Rugby” or the “Company”) (TSX-V: RUG) is pleased to announce that it has intersected a gold-copper porphyry below mine workings at the Motherlode Gold-Copper Project (“Motherlode” or the “Project”), Surigao Del Norte, Philippines.

Drill hole MD009 was collared to test depth extensions to the high grade Motherlode Mine and a deep Induced Polarisation (“IP”) anomaly underlying the vein system. The hole successfully intersected the vein target twice between 320 metres (“m”) and 335 m but unfortunately the veins had been mined out. The target was an unmined zone represented by historic drill hole DDH11. That hole intersected 13.9 m at 6.8 g/t gold and a further 3.9 m at 18.1 g/t gold*.

The Motherlode IP anomaly is two kilometres (“km”) in length (see diagram below) and represents a porphyry target similar to other porphyry deposits in the area. MD009 intersected 584 m of porphyry mineralization from immediately below the mine workings at 343 m to the hole bottom at 928 m. The grade was 0.62 g/t gold equivalent (see Table below).The intercept included a wide zone of diorite porphyry and argillically altered tuff averaging 0.3 g/t gold, 0.3% copper and 64 g/t molybdenum. Copper and molybdenum values increased with depth coinciding with higher IP chargeabilities.  

Click here for drill hole details, location plan and methodology.

A second drill hole, MD010, tested a possible faulted extension to the Motherlode system. No epithermal veining was encountered in the hole to a total depth of 283 m. Partial assays received to date include 3.0m of 2.0 g/t gold from 40 m downhole in pyritic, altered and brecciated tuff.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7d6295d6-9204-44ca-8648-ef8229c85959

Rugby CEO Bryce Roxburgh stated, “The Motherlode gold mine continues to have potential for additional ore grade mineralization. The vein system appears to continue to depth into the underlying porphyry. To determine whether a renewed mining operation focused on further developing the epithermal veins and later the lower gold-copper target could be established will require additional drilling.

“The high grade gold target continues to be viable as the system remains open at depth. Further drilling to specifically focus on the high grade veins is being planned.

“The long mineralized intercept in drill hole MD009 combined with the 2 km long geophysical signature indicates the sulphide system has impressive dimensions with ample room for a higher grade potassic zone. Argillic alteration in drill hole MD009 shows that hole is peripheral to the potassic zone. Should the Motherlode porphyry be similar to the high grade Cascabel deposit in Ecuador, the potassic zone will in fact be deeper in the system than tested by our drill hole.

“Following a detailed evaluation of the MD009 core we will select the next site for drilling this impressive target.

“Separately, recent prospecting has located gold anomalous float located south of the area drilled. One large breccia boulder assayed 4.4% zinc, 0.7% lead, 0.4 g/t Au and 21 g/t Ag,  a second boulder has preliminary assays of 3.1 g/t Au and >100 g/t Ag. That float is now being followed up with prospecting as they potentially represent an entirely new target.”

Quality Assurance and Quality Control
All technical information for Rugby’s Motherlode project is obtained and reported under formal quality assurance and quality control (“QA/QC”) procedures and guidelines. Rugby’s procedures are designed to meet or exceed C.I.M. “Best Practices Guidelines” and National Instrument 43-101 standards of disclosure. QA/QC protocols for drill core sampling and assaying include the insertion and monitoring of appropriate reference materials (certified standards, blanks, duplicates and checks) to validate the accuracy and precision of the assay results.

All drilling samples were collected with a diamond core drilling rig using approximately one to three metre sample intervals following industry standard practice. Intertek Mineral Services (NATA ISO/IEC 17025 accredited) prepared the samples at Intertek’s sample preparation facility in Surigao, Philippines and then samples assayed at Intertek’s laboratory in Manila, Philippines. All samples were assayed for Au using fire assay (50g) with an AAS finish and multi element analysis using trace level ICP. Samples >1% Cu were re-assayed using an ore grade 4 acid digest with AAS finish.

Paul Joyce, a Director 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.

*Results shown above are historical in nature. Management is conducting follow-up exploration including drilling to confirm past results from a previous operator. Management considers this information to be appropriate for reference purposes.

**The assay grades are uncut. Gold equivalent values were calculated using gold, copper and molybdenum, using the metal prices: US$2.62/lb Cu, US$1500 Oz Au, and US$27/kg Mo. No allowances for metallurgical recoveries were considered as this is an early stage project and metallurgical data is not yet available. The formula utilized to calculate equivalent values was Au Eq (g/t) = Au g/t + (Cu % X 1.20336) + (Mo g/t X 0.00056). Values given in the table have been rounded and apparent calculation errors resulting from the calculation are not considered to be material.

About Rugby
Rugby is an exploration company conducting “discovery stage” exploration on targets in Colombia, Argentina, the Philippines and Australia considered prospective for significant mineral deposits. The Company controls a portfolio of gold and gold-copper projects in Colombia that are unaffected by the recent negative permitting decision on the Cobrasco copper project. These projects have considerable potential for significant gold copper discoveries.

The Company 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.

CAUTIONARY STATEMENT
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 plans at its projects including the expected timing of drilling programs at the Motherlode, prospectivity, high grade potential and potential for mineral discoveries at Motherlode, the style or occurrence of the mineralization and drilling costs 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. In addition the Company holds certain of its projects under option agreements, which require 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 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, 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, 2019 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 

Figure 1

Perspective view MD009 / MD010 and 3D IP chargeability