The Comita Project

The Comita Porphyry Copper Gold Project (“Comita” or the “Project”) is located 100 kilometres southwest of Medellin in the Choco Province of western Colombia. Choco is an emerging mining / exploration district that hosts exciting geological potential. Choco is currently the second largest gold producing province of Colombia and is known only for its historical and present day alluvial mining operations. There are no modern mining operations in hard rock, although both junior and major resource companies alike have initiated exploration programmes in the Western Cordillera in search of porphyry ore bodies. This zone remains virtually untouched by modern exploration methods, with the last major regional sampling program conducted by the German BGR-Ingeominas survey in 1983-1987.

The area was first recognised during the 1980’s by a German government (BGR) reconnaissance exploration program which identified extensive and strongly anomalous copper stream sediment geochemistry which defined outcropping porphyry copper style mineralization. The zone of strong stream sediment copper anomalism covers a district sized area of approximately 8 square kilometres.

Comita, which covers an area of 45 square kilometres, comprises one granted Contract Concession (JB5-08011) covering 15 square kilometres and two adjoining Concession Applications totalling 30 square kilometres. Announced in October 2010, Rugby entered into an agreement over the Comita Porphyry Copper Gold Project in Colombia granting it the right to earn up to a 60% indirect interest in the project.

The Project is situated within undulating terrain with elevation ranging up to 900 metres. Mineralization is hosted by a sequence of felsic tuffs, proximal to and immediately west of the contact with a number of syenite to monzonite intrusives. Previous exploration by the BGR indicates potential for an enriched supergene blanket containing chalcocite after bornite, cuprite, malachite and native copper. Molybdenite was also observed. Alteration appears similar to other large porphyry copper systems where primary magnetite is replaced by hematite (martitization). Mineralized outcrops of stockwork quartz-bornite veining occur within the property. To date, no systematic modern exploration or drilling has been conducted on the property.

Existing mines in the region include Medoro Resource’s Marmato deposit (9.7Moz Au) and the Frontino Gold Mine, which historically produced about 4.5 million ounces of gold. Significant gold porphyry discoveries in the district include Sunward Resources' Titiribi (3.7Moz Au) deposit, AngloGold Ashanti's La Colosa (12.3 Moz Au) deposit, and AngloGold / B2Gold’s Gramalote (2.4Moz Au) deposit.

Rugby recently completed an aeromagnetic survey at Comita (Read the press release). This 555 line kilometre helicopter borne geophysical magnetic survey covered the entire property. It was flown at a height of 70 metres with 100 line spacing. The results of this airborne survey will be used to define intrusive related mineralization within the complete project area. Final processing and interpretation of the data will be completed in September and the results will assist in designing the 2012 drilling program.

In order to commence drilling on the Project, the area will require exclusion from a secondary growth forestry reserve. Certain activities related to this permit application have commenced and it is anticipated that the Company will be able to drill in early 2012. In addition, Rugby will also initiate a community relations program with the local people to obtain support for its activities.