Rugby Resources Ltd. announced 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 to 40 metres (?m?) thickness. 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; 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; 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.

El Zanjon Drilling Program: A 4,750m drilling program will focus on areas AOI2 and AOI3, comprising 28 holes with an average depth of 170m to test 15 targets. The program is planned to comprise 3,655m of diamond drilling and 1,095m of tricone precollar. The precollar depths are estimated at 40 to 60m to reach the Jurassic paleosurface.

The Venidero Gold-Silver Project: Rugby's Venidero project covers 7,996 hectares in the western area of the Deseado Massif, Argentina. It is approximately 60 kilometres south of Newmont's Cerro Negro gold mine, a large system of epithermal gold-silver veins with reserves of 2.56 million ounces of gold at a grade of 8.89 grams per tonne (2021 Newmont Reserves Release).