The Mabuhay Gold project (“Mabuhay” or the “Project”) covers an area of 878 hectares (“ha”) and is located 12 kilometres (“km”) south of Surigao City, the capital city in the province of Surigao del Norte, Philippines. Mabuhay, formerly known as “The Mindanao Mother Lode Mine” (“Mother Lode”) was an epithermal vein style bonanza-grade gold mine that is estimated to have produced and estimated 500,000 ounces of gold from 1937 through to 1953*. Mother Lode, which was once one of the Philippines’ highest grade gold producers, is located in the centre of the Project’s tenements. Rugby has drilled at Mabuhay and the Company believes porphyry discovery potential exists at depth, below the old workings.
All-Acacia Resources Inc, Rugby’s local joint venture partner, submitted an Application for an Exploration Permit for the Mabuhay Project, in April 2013. On Jaunary 23, 2019, Rugby announced that a drilling and exploration permit was issued for its Mabuhay Project, including the Mother Lode gold target, in the Philippines. Rugby’s earlier permits, although covering a large area, specifically excluded the old gold mine area and consequently it had previously been unable to drill the Mother Lode target.
Mabuhay is situated within a 15 km radius of numerous multi-million ounce gold and gold/copper porphyry deposits and mines, which include Philex Gold Inc.’s Boyongan and Bayugo gold/copper porphyry deposits, Manila Mining Corporation’s previously operating gold/copper mines and Red5 Limited’s (“Red5”) Siana gold deposit.
Past drilling conducted by other companies on the Mabuhay property, which targeted the epithermal vein system at Mother Lode, returned significant results including 15.5m at 5.92g/t gold and 3.9m at 18.11g/t gold**.
Rugby conducted a limited drilling programme in 2011 on secondary targets, which surrounded the prime Motherlode target area which at the time remained under application. The drilling results, together with earlier geophysical surveying anomalies strongly vectored epithermal gold and porphyry copper-gold potential to the main Motherlode area which requires drilling.
The old Motherlode Mine is estimated to have produced some 500,000 ounces of gold from high-grade epithermal veins*. This area remains open and is the Company’s primary target for epithermal type deposits. The Company also considers the area to have significant potential for a deeper high-grade porphyry type gold-copper discovery. This next drilling program will focus on the Motherlode Mine area.
Certain information contained herein can be considered forward Looking. Please click here to review the Company's cautionary statement for investors. 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 on this webpage.
*This historical estimate is presented for reference purposes only. A majority of the records on actual ore produced at Mother Lode were destroyed during WW2 and by later fires. Management has examined physical evidence at the site and available geological data to confirm that the estimation is suitable for presentation.
**The Company will be required to carry out a further assessment of previous exploration results, including drilling, conducted by the previous operator. The Company believes the data are suitable to report in this news release for informational reference only.