Table 1. Drilling summary to 2022 Year end

Figure 2. Copper soil geochemistry and drill hole location

Figure 2 above shows the soil copper geochemistry and the position of the three drill holes. It demonstrates the extent of the copper anomaly and the limited sub surface testing accomplished to date.

CDH001 intersected 82m at 0.90% Cu and 199ppm Mo within a broader interval of 808m of 0.42% Cu and 79ppm Mo. The Figure below is a cross section of the drill hole with bundled assays included.   

Figure 3. Schematic cross section for CDH001 with assay intervals  tabulated.

The second hole, CDH002 was collared 400 meters south of CDH001, and intersected 172m of 0.74% Cu and 78ppm Mo within a broader interval of 754m of 0.46% Cu and 76ppm Mo from a down-hole depth of 152m. A near surface mineralised zone of 70m of 0.29% Cu and 50ppm Mo was intersected from 18m.

Figure 4. Schematic cross section of CDH002 with assay intervals tabulated.

CDH003 was paused at 300.6m in December in strong porphyry mineralisation, and as stated above, is targeted to extend to 1300m. CDH003 intersected 144.6m of 0.69% Cu and 155 ppm Mo from 156m to 300.6m. CDH003 also intersected a near surface mineralised zone of 148m of 0.20% Cu and 65 ppm Mo from 8m, which included 60m of 0.27% Cu and 57 ppm Mo. This shallow intercept is interpreted as the continuation of the same shallow mineralised zone intersected in CDH002 grading 70m of 0.29% Cu and 50 ppm Mo.

Figure 5. Last drill core tray CDH003 before drilling suspension. Shows dominant bornite (dark colour) in classic porphyry veining with lesser chalcopyrite in diorite porphyry. The interval 298.0m to 300.6m assays 2.69% Cu, 151 ppm Mo, 7.3 ppm Ag

Cobrasco mineralization is bornite dominant with lesser chalcopyrite and molybdenite. Penalty elements (particularly arsenic) are low within the deposit. The mineralization is expected to be amenable to the production of a high-grade copper concentrate using traditional mineral processing. Preliminary metallurgical tests will be conducted following the completion of the current drilling program.

Drilling results and mapping/sampling support our interpretation that Rugby has discovered a major copper molybdenum porphyry complex.  It includes a cluster of porphyry centres within a north westerly trending structural corridor, a feature frequently observed in western Andean porphyry systems.

Soil sampling has defined a large open ended copper-molybdenum feature with highly anomalous results. Sampling results are waited for grid continuations to the northern and southern concession boundaries where mapping and rock chip geochemistry has shown additional porphyry potential.

Figure 6. Soil molybdenum anomaly at surface and air magnetic anomaly below. The Magnetization Vector Inversion (MVI)  can result from magnetite destruction in the porphyry complex

The MVI image in Figure 6 is derived from Rugby’s airborne magnetic survey. Prominent magnetic lows and probable magnetite destruction are considered indicative of porphyry intrusives and alteration. Modelling of the magnetics shows a significant anomaly from 300 to 1500 metres deep with a surface project projection of 1200 to 800 metres.

A recently completed field examination of the northern area of elevated molybdenum (which often denotes the central locus of a porphyry copper - molybdenum system) was conducted in Q4, 2023. This zone is located approximately one kilometer north of porphyry mineralisation drilled by Rugby. Prospective bornite molybdenite vein filled porphyritic rocks were located and sampled. Results are awaited.

Figure 7 (a) Quartz-pyrite-chalcopyrite stockwork from recent landslide, and 7(b) rhyolite with molybdenite-malachite veinlets

In Q3, 2023, Rugby sent its field team to evaluate the large magnetic low centered some two kilometers east of the drilled porphyry. The team encountered very strong and large copper- gold rich brecciated boulders in creek the beds. The source of these mineralised boulders indicates the existence of another large, and different porphyry system.

Although timing prevented the team from locating the source of the mineralised breccia, the copper - gold mineralised tonalite porphyry was located within the large magnetic low. This low may have formed due to destruction of magnetite on the introduction of porphyry systems.

Figure 8(a) Location of samples from eastern copper gold porphyry system

Figure 8(b) Location of magnetic low with superimposed anomalous copper gold porphyry rock/float samples.  

Proposed Drill Program

Drilling is expected to recommence early 2024 continuing CDH003 to its planned depth of 1,300 meters. The results from the initial three holes will establish drill site priorities going forward.

A Strategic Opportunity

The Cobrasco discovery comes at a time when western economies are only starting to recognise that a dire shortage of copper is inevitable given the greening economy ahead. Unfortunately in the short term, copper prices are not advancing quickly enough to ignite a copper investment boom that will flow from the senior producers down to the junior explorers. Therefore, as it stands, juniors must either accept stalled programs or unacceptably high capital dilution.

Realistically some 50,000 to 100,000 meters of drilling will be required to outline the Cobrasco porphyry system. The high cost of helicopter supported drilling elevates costs. What Rugby has demonstrated however is that the size and quality of the Cobrasco porphyry system is potentially exceptional by industry standards. That being the case Rugby is very well positioned to seek a financing relationship with a major company/institution for the next phase of drilling. That initiative is already in progress.

Drill Permitting in Western Colombia

As with other projects in the region, the two Cobrasco concessions fall within a very large Forestry Reserve that encompasses the western side of Colombia.  Prior to 2022 mineral exploration in the region required a Forest Reserve Extraction for those sites where drilling was to be undertaken. In January 2022, a Resolution was passed allowing for drilling where specific requirements are met. Rugby is meeting those requirements and expects to be able to meet those requirements for future drilling.