Rugby Mining Limited reported the completion of a follow-up soil sampling program and three-dimensional ground magnetic modeling at El Zanjon in Argentina. The soil assays are awaited but the 3-D magnetic modelling is complete. The 3-D modelling shows a series of deep-seated east-west faults interpreted to be potential hydrothermally altered pathways for mineralizing fluids.

This presentation shows the E-W faults that break up the stratigraphy into a series of blocks. Presenting the data as a magnetic cross section enables an interpretation of the dip of the faults. When the soils data is received and compiled, drill targeting will be possible.

Southern Rock Geophysics was contracted to prepare the 3D magnetization model from which a suite of horizontal plans and north-south oriented vertical sections were plotted. The plans and sections distinguished the deep structures which have greater potential for tapping into magmatic gold-silver rich fluids. A fourth follow-up soil sampling program was completed to test new structures defined by extensions to magnetic surveying completed in late 2021.

A total of 223 samples were dispatched for low level ionic leach assaying bringing the combined number of soil samples to 1,099. An additional fifth soil sampling program, to cover several deep-seated interpreted fault structures identified by the 3D magnetization vector inversion modeling, will be conducted prior to onset of the southern winter. On receipt of all data, drill targets will be prioritized.

Drilling is planned to commence late 2022 year during the southern hemisphere summer. Sampling Methodology: The soils were sampled following ALS laboratories sampling instructions. All site locations were recorded as WGS84, UTM Easting and Northing coordinates Zone 19 using a hand-held Garmin eTrex® 20.

Samples were collected from 10 cm to 20 cm below the surface. A 120 gram sample was collected and placed in a Ziplock plastic bag with the sample number permanently marked on the bag. The bag was folded over to remove most of the air and sealed, then placed in another plastic bag again removing as much air prior to sealing.

Jewelry was removed and only plastic and wooden implements were used. All samples were placed in plastic boxes and dispatched to ALS (Vancouver) for Ionic Leach analysis by ME-MS23TM method. Laboratory duplicate samples were included in the analysis.

Data Analysis: The geochemical data were imported into the project's database for geostatistical analysis, determination of correlation and geochemical mapping. The dataset was filtered by soil type and grouped in Sand and Gravel (SG) or Tertiary (TR) to analyse them independently. Geostatistics were calculated using Discover software for the sub-dataset Ag, As, Au, Cd, Cu, Fe, Hg, Mo, Pb and Sr. The percentiles were then used to prepare accurate geochemical thematic maps with the objective of distinguishing anomalies.