El Zanjon Gold Silver Project,
Patagonia, Argentina
The El Zanjon project is located south of the Cerro Vanguardia Mine (3.55 million ounces gold and 89 million ounces silver (AngloGold Resource report, 2017). Cerro Vanguradia is marked by major NW trending veins which change direction in the north to EW trending.
Regional airborne magnetic surveying has shown major NW trending structures at El Zanjon which change direction to the south to more EW trending. Prior academic studies predicted a possible repetition of Cerro Vanguardia to be found as the southern sector of a common major dilation zone.
Regional airborne magnetic survey showing trends of mineralised veins
At Cerro Vanguardia (north block) and at El Zanjon (southern block)
The Cerro Moro Escondida vein structure also trends NW and varies to EW in the
This was discovered by the team who will now work on the El Zanjon project.
Rugby has an option over the project and may earn a 100% interest over six years. The company has a minimum exploration commitment of CAD$50,000 which will cover more detailed ground magnetic surveys to delineate favorable drill targets. In order to earn 100% of El Zanjon, Rugby will have the option to incur staged exploration expenditures totaling CAD$3.65 million over 6 years including completing studies to Pre-Feasibility standards. Rugby will also cover tenure payments totaling CAD$15,000 annually. The vendors will retain a 2%NSR.
Rugby completed ground magnetic survey at 320 meter line spacing in December 2019. This has defined favorable structures and flexures for hosting potential gold silver mineralisation similar to Cerro Moro and Cerro Vanguardia (see image below).
Broad spaced low level geochemical sampling was conducted along the prospective structures and above the gravel cover to look for potential leakage from underlying gold-silver concentrations. A number of prospective geochemical targets defined (see image below). These will be followed up in H2, 2020 in more detail.
Line spacing for ground magnetics will be reduced to 160 meters and 80 meters to better define targets in H2, 2020. Concurrent low level geochemical surveying will also be carried out.
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 COO, Director 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.