Rugby Mining Limited reported that field work is continuing at its Salvadora silver-copper-gold project in Chile ahead of a core drilling program in February. The current program has included a detailed interpretation of the recent airborne geophysics and talus sampling, geological mapping, rock chip sampling and road construction. Salvadora is located in the south of the El Indio gold belt that hosts +44 million ounces of gold and 875 million ounces of silver.

The Salvadora exploration target is a structurally controlled deposit(s) of high grade silver-copper-gold ore within the large Salvadora alteration zone. Rugby's recent Salvadora airborne magnetic/radiometric survey has provided key structural information and delineated the trace of the prospective host sequence for +7 kilometers. A total of 14 geochemical/geophysical targets have now been identified (Figure 1) and are in the process of being ground truthed.

The Company will delay the commencement of drilling until February so that these high priority targets can be refined to provide the best target areas for both access and drill testing. The geophysical survey has highlighted several magnetic lows within the Salvadora alteration zone that are interpreted to represent large scale hydrothermal plumes and the associated destruction of magnetite. Two large inflections of the main structure are evident, one in the north and the second in the south.

Such inflections represent sigmoidal dilation features due to dextral fault movement. These features commonly become sites where mineralising fluids may be focused. Profiling of the magnetic data by Southernrock Geophysics has identified deep steeply dipping structures within the targeted sigmoidal structures.

Electrical geophysical surveys are currently being considered to locate sulphide accumulations along the structures under the extensive cover of talus debris.