Rugby Provides Exploration Update on its Gold-Silver Projects in Santa Cruz Province, Argentina

Vancouver, B.C., May 07, 2024 (GLOBE NEWSWIRE) -- Rugby Resources Ltd., (“Rugby” or the “Company”) (TSX-V: RUG) is pleased to announce the receipt of environmental approval for drilling on the El Zanjon Project (“Zanjon”) south of the Cerro Vanguardia gold-silver mine (AngloGold Ashanti). Drilling water supplies have also been approved. A pre-drilling campaign of ground magnetics and geochemistry can now proceed ahead of a planned 28-hole drilling program.

Zanjon is situated in the Chon Aike Formation of the Deseado Massif, a region of Jurassic age volcanics rocks that host a number of world class epithermal gold-silver systems. The Chon Aike epithermal vein systems are characterized by complex fault systems, some of which are highly mineralized. In the Zanjon area the prospective volcanics are covered by young, flat-lying sediments with an estimated 30-40 metres (“m”) thickness.

Magnetics have proven highly effective in mapping Deseado Massif fault systems, with the Zanjon area being no exception. Rugby’s magnetics has demonstrated that Zanjon covers a network of NW and EW structures that with ionic leach geochemistry are demonstrated to provide significant gold-silver targets.

Figure 1. The El Zanjon and Venidero Projects are located in Santa Cruz Province and within the Deseado Massif gold and silver district.

Please click to view image

Zanjon is considered to have excellent potential for discovery of a large, mineralized vein field:

• The Zanjon area was chosen after research identified it as a prime target for the next significant vein field south of the Cerro Vanguardia mine. The selection was based on the Zanjon area being analogous to Cerro Vanguardia where a deflection on a regional north westerly fault zone has provided a network of dilation zones to host the very large array of gold-silver veins. At Zanjon, a regional NW fault set deflects eastward creating similarly favourable structural conditions for the deposition of gold-silver rich solutions in the structurally prepared Chon Aike volcanics (Figure 2).
• Rugby validated the structural model by 320m and 160m spaced ground magnetic surveying.
• Given the sedimentary cover, low-level ionic geochemical techniques were employed to identify target zones within the structures. Figure 3 illustrates an analysis of the 1,740 samples collected using the MDRU Porphyry Index Lateral (MPIx_L)*.
• Prior to drilling a final program of more detailed magnetics will be completed, with line spacings reduced to 80m (or 40m) to provide the detail required for drill collar siting. In-fill geochemical sampling will also be completed.