Rugby Mining Limited ("Rugby" or the "Company") (TSX VENTURE:
RUG)(FRANKFURT: 7RM) is pleased to report the results from 2
drillholes of the initial drilling program at its Mabuhay gold
copper project located near Surigao, Philippines, which have
intersected gold mineralization in both the epithermal and porphyry
targets.
Targeting Epithermal Gold Silver Mineralization: The first drill
hole (MD-001) targeted epithermal style mineralization about 450
meters ("m") southwest of the Motherlode Mine which historically
produced approximately 500,000oz of gold.
MD-001 intersected a 33m interval of epithermal quartz-sulphide
veins and breccia with an average grade of 1.8 g/t gold from a
depth of 71m to 104m, including 2m at 11.2 g/t gold from 98m.
Pelican Resources Limited previously completed 18 diamond drill
holes into the epithermal vein system with significant results
including 15.5m of 5.9 g/t gold and 3.9m of 18.1 g/t gold in DDH-11
which is located 580m east of MD-001.
Further drilling is planned to define the extent of the
epithermal mineralization.
Targeting Porphyry Gold-Copper Mineralization: Two drill holes
(MD-002 and MD-003) were located 750m and 950m northeast of MD-001
to test a chargeablity anomaly defined by a recently completed 3D
Induced Polarisation ("3D-IP") survey. MD-002 was terminated at a
depth of 1,007m due to difficult drilling conditions, however wide
intervals of low grade copper sulphide mineralization were
intersected within intrusive rocks and related breccias from 424m
to 1,007m. Assays have been received for some intervals and
significant results to date include:
----------------------------------------------------------------------------
Hole From To Width Cu Au Mo
m m m % g/t ppm
----------------------------------------------------------------------------
MD-002 468 618 150 0.27 0.07 112
618 732 114 Assays pending
732 975 243 0.27 0.24 88
975 1,007 32 Assays pending
Assay results for MD-003 are pending.
Paul Joyce, the Company's President and CEO stated, "The
Motherlode deposit is hosted within a 1km x 2.7km possible diatreme
vent, where the extensive epithermal vein system was mined over
765m in length and to a vertical depth of 245m. Mineralization
occurs in epithermal quartz-sulphide veins, surrounded by zones of
pervasive alteration, which is interpreted to be low-sulphidation
epithermal in style with porphyry-style gold-copper mineralization
at depth. Our current drilling is starting to intersect both
epithermal and porphyry type mineralization adjoining the
Motherlode Mine area which may indicate potential for a large
mineralized porphyry to occur at depth below the old mine.
"The gold intersection in MD-001, 450m southwest of the
Motherlode Mine demonstrates a larger epithermal gold potential
than previously envisaged and as a result of this early drilling
encouragement we are planning to extend our drilling program beyond
the original 2,000m drilling budget.
"We regard the Motherlode area to be the prime target for the
discovery of significant extensions to the high grade epithermal
gold silver mineralization, as well as porphyry gold-copper
mineralization at greater depths below the epithermals. Both
epithermal and porphyry mineralization occurring in a similar
manner is noted at nearby orebodies on the Surigao Peninsula. We
have not yet commenced drilling these target areas closer to the
Motherlode mine as we are awaiting permitting approval (area shown
with blue boundaries in the diagram below) which is expected in Q4
this year.
"A second drilling campaign will follow that approval and will
target both high grade epithermal mineralization and porphyry
gold-copper mineralization. Vectoring from drilling suggests this
area to be the prime target area for both styles of
mineralization."
To view the figure associated with this press release, please
visit the following link:
http://media3.marketwire.com/docs/713776.jpg
About Rugby
Rugby, with a treasury of $6.9 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
Comita Project
Rugby has a two stage option agreement with Rio Tinto 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 copper-gold
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 the second half of 2011, with drilling first half
2012.
Interceptor Project
Rugby recently announced that it had entered into an option
agreement with Miranda S.A., an Argentine company, 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 porphyry copper gold
targets defined by geochemical and geophysical surveys.
Paul Joyce, the Company's President and CEO 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.
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
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 the Interceptor,
Comita, Hawkwood and Mabuhay projects, 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. 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, gold
and iron 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 mining properties in good standing; political risk
that a future government will change environmental regulations,
taxes or mineral royalties in a manner that could have an adverse
effect on the Company's financial condition and impair its ability
to 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 sometimes ambiguous conveyancing characteristic of
many resource properties, currency risks associated with foreign
operations and other risks and uncertainties, including those
described in each management discussion and analysis.
The Company is required to issue shares, pay option fees and
complete certain work and expenditure requirements in order to
maintain and earn its interest in the projects referenced above.
The failure to issue such shares, pay the option fees or complete
the required expenditure or work commitments could result in the
loss of such project. 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.
Contacts: Rugby Mining Limited P. Joyce President 604.688.4941 /
Toll-free: 1.855.688.4941 604.688.9532 (FAX) Rugby Mining Limited
Cecil Bond Director 604.688.4941 / Toll-free: 1.855.688.4941
604.688.9532 (FAX) info@rugbymining.com www.rugbymining.com
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