The Interceptor Project
The Interceptor Porphyry Gold Copper Project (“Interceptor”) is located in the Catamarca Province in Argentina, near the 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 targets defined by geochemical and geophysical surveys conducted by a previous operator.
In 1997 Newcrest Mining Ltd identified gold and copper mineralization in a sediment-intrusive complex at Interceptor. Eight bulldozer trenches totalling 2,000 metres (“m”) were completed within a two square kilometre area. Importantly, not all of the trenches were successful in reaching bedrock.
A total of 428 channel samples were collected by Newcrest, including:
- 39m at an average grade of 0.56 g/t gold
- 39m at 1.22 g/t gold
- 42m at 0.33% copper and 0.21g/t gold
The geology of Interceptor is documented to be an early microdiorite intruding an older sedimentary sequence which was subsequently intruded by silica-sericite-pyrite altered quartz-feldspar porphyry. Secondary copper mineralization is associated with quartz-stockworks that are exposed in a zone up to 100m wide. Colluvial cover obscures the true extent of the mineralization. Previous geophysical surveys identified a strong Induced Polarization (“IP”) anomaly which appears to be open and widening to the south. No drilling was performed.
Rugby plans to extend the IP coverage beyond the existing survey area and diamond drill both existing and newly defined targets.
The Agreement with Miranda grants Rugby a 6 year option to acquire 100% of titles which have a total area of 32.4 square kilometres. The consideration is the payment of an initial US$ 50,000 and thereafter the payment of an annual option fee of US$ 50,000 for 3 years, followed by payments of US$ 62,500; US$ 75,000 and US$ 87,500 for years 4 to 6. In addition, in order to exercise the option, the parties will negotiate the option exercise price, which will not be less than US$ 1 million and no greater than US$ 5 million. Miranda will also retain a 2% net smelter return (“NSR”) over the properties. If Rugby exercises the option to acquire the properties it will be required to pay escalating advance royalty payments until the property is put into production. Rugby also has an option to purchase the NSR from Miranda. There are no minimum annual expenditure or work commitments.