El Zanjon Project, Santa Cruz, Argentina

Rugby has an option over the project to earn a 100% interest over six years. Rugby has the option to incur staged exploration expenditures totalling CAD$3.65 million over 6 years including completing studies to a pre-feasibility standard. The vendors will retain a 2% NSR. 

Despite its proximity to Cerro Vanguardia El Zanjon was not historically explored due to extensive Tertiary sedimentary cover 50-100 metres thick.  Rugby completed a ground magnetic survey at 320 metre line spacing in 2019 that defined favourable structures and flexures for hosting potential gold silver mineralisation similar to the Cerro Moro and Cerro Vanguardia systems. Subsequently, more detailed magnetic follow up has been conducted at 160 meter spacings and in most favoured target areas, 80 meter spacings. This detail will assist with drill targeting

To detect potential “leakage” from underlying gold-silver deposits, consecutive broadly spaced low level (“ionic”) geochemical sampling has been conducted. A number of prospective geochemical and magnetic targets were defined (see image below). These targets were followed up in 2021 at 160 metre spacings.  Results were very positive with a strong gold-silver correlation demonstrated for both N-W and E-W structures. Further detailed sampling was conducted in the latter part of 2022, and results received in December 2022.