Rugby Mining is pleased to announce that it has acquired an extensive portfolio of both granted exploration concessions and applications covering approximately 845 square kilometres in Colombia.
The acquisition, which includes a substantial geological database, was secured through the purchase of a subsidiary of Barrick Gold Corporation ("Barrick").
Under the terms of the agreement, Rugby acquired 100% of the issued and outstanding common shares of the Barrick subsidiary for nominal cash consideration. No residual rights to the subsidiary or the Colombian properties were retained by Barrick.
The portfolio includes projects in the Boyacá, Lower Cauca and Bucaramanga gold regions of Colombia that are prospective for both epithermal gold and porphyry gold mineralisation. Of particular note, one project has been partially tested with 30 drill holes totalling over 14,000 metres.
Most holes intersected wide intervals of significant gold mineralisation with numerous nearby targets remaining untested. Further technical information on the properties is expected to follow in the near future pending an initial review of the extensive database.
Rugby’s Chairman, Bryce Roxburgh stated, "The acquisition of the Colombian entity places Rugby in an ideal position. We now have what I consider to be an exciting drill-ready gold property plus a pipeline of early stage gold targets. The projects are well located within major gold districts and importantly, all are outside Colombia’s high altitude Paramo ecosystem where mining is restricted.
"Initially Rugby will conduct a review of the extensive geological database to identify new gold targets over the various drill ready concessions.
"Rugby’s directors are recognised for having successfully made similar acquisitions from major mining companies, viz. Exeter and Extorre (Extorre was sold to Yamana Gold). It is my belief that this acquisition provides an excellent platform for similar success, particularly in a rising gold market. This acquisition complements our undrilled porphyry projects at Cobrasco and Comita that await permitting."
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-molybdenum-gold targets which were recognised during a joint German-Colombian government sponsored exploration program conducted in the mid-1980’s.
No systematic exploration or drilling has been conducted since that time. The final permit required for Cobrasco drilling is outstanding and further studies are proposed.
The Company continues to work closely with the Colombian Mining Association, along with other similar mineral exploration and mining companies, to gain broad public support for a future copper industry in the country. A developed copper industry is believed to be a viable future source for jobs and significant government revenues, similar to neighboring countries like Chile, Panama and Peru.
Otways Copper Project, Pilbara Australia
Rugby has acquired mineral property concession applications over the Otways Copper Project in the Pilbara, Australia for a nominal cash consideration and a 2% NSR. The concession applications cover an area of 118 square kilometres and host the potential for copper (gold) porphyry targets. Timing for the granting is expected within the next 12 months.
Mabuhay Gold Project, Philippines
An application for an exploration permit ("EP") is currently awaiting approval. To minimise expenditures, the project will remain under care and maintenance until the EP is granted.