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Rugby Mining Ltd
Symbol RUG
Shares Issued 70,345,833
Close 2018-05-01 C$ 0.36
Market Cap C$ 25,324,500
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Rugby Mining plans to drill San Antonio project

2018-05-02 09:22 ET - News Release

Mr. Paul Joyce reports

RUGBY TO DRILL SAN ANTONIO PROJECT

Rugby Mining Ltd. plans to initiate exploration, including drilling, on its San Antonio gold project, Colombia.

San Antonio is located about 80 kilometres south of Medellin and seven kilometres northeast from the Marmato gold project (measured plus indicated 3.8 million ounces gold and inferred: 4.2 million oz gold) in the mid-Cauca gold district. The company considers San Antonio to be geologically similar to Marmato and worthy of drill testing following completion of an induced polarized (IP) geophysical survey.

Rugby has reviewed historical project data, conducted comprehensive sampling and completed geological mapping on the project. That work has confirmed the potential for a large gold porphyry deposit at San Antonio which was acquired as an option to purchase in October, 2016.

Concurrent with the IP survey, an application for a water permit, the only remaining permit required for drilling, will be finalized. Approval is expected within a few weeks.

Previous IP surveying was shallow, yet recent geological/geochemical work by Rugby strongly suggests the porphyry target is at depth.

Drilling by a previous operator tested mineralization peripheral to Rugby's main porphyry target. That drilling reportedly intersected 500 metres at 0.4 gram/tonne gold from surface in DDH23; and 387 m at 0.2 g/t gold from 87 m, including the final 50 m assaying 0.7 g/t gold in DDH24.

Paul Joyce, Rugby chief executive officer, stated: "San Antonio hosts a porphyry-type, multiphase sheeted and stockwork quartz vein system. The geological setting appears to be similar to a number of the most significant gold-silver deposits in the mid-Cauca gold district.

"Importantly, we can advance an IP program at San Antonio using geophysical contractors while our team continues to focus on drill permitting the Cobrasco copper project.

"The drill permit application process at Cobrasco has been long and comprehensive but we are now in the final stage of review. We remain optimistic on a decision in the near future.

"To achieve our objectives some additional funds will be required. We wish to keep the amount modest, just sufficient to accomplish the San Antonio program and to continue the application process at Cobrasco."

About Cobrasco

Rugby continues to focus on the permit application necessary for drilling its 100-per-cent-owned Cobrasco project in Choco province, western Colombia. As part of completing the application process, a site verification visit was conducted in March, 2018, by the Department of Forestry to view the drill sites selected by the company. All other permits required to drill, including agreements with local communities and water permits, are now in hand.

The 30-square-kilometre tenement includes Cobrasco North and South, which are situated approximately 100 km southwest of Medellin in the Choco porphyry copper belt. This belt represents a continuation of the very productive Chilean and Peruvian copper belts. Cobrasco hosts both outcropping porphyry-style copper mineralization and high-priority geochemical and geophysical targets that have never been drill tested. The dimensions of the system are large, indicating potential for the discovery of a significant copper resource.

Cobrasco is located immediately north and south of the Comita project, a property currently under option to Rugby.

Paul Joyce, Rugby's chief executive officer, 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.

About Rugby Mining Ltd.

Rugby is an emerging mineral resource company focused on a portfolio of projects having considerable potential for significant mineral discoveries.

We seek Safe Harbor.

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