Rugby Resources Ltd. reported that the Company has received approval for exploration drilling at its El Zanjon epithermal gold-silver project in Santa Cruz Province, Argentina. In addition, it has increased its land position to secure a potential extension to the gold-silver system. Highlights: Approval received for 28 drill holes for 4,750 metres (m).

Significant gold-silver assays recorded in soil sampling. Additional 2,166 hectares of land staked to cover extension to structures with elevated gold-silver. Detailed ground magnetics and geochemistry scheduled for H2-2023 to refine drill targeting.

El Zanjon Project: The Company is targeting high grade gold-silver epithermal veins in the Deseado Massif, host to a number of exceptional deposits. El Zanjon is 30 kilometres (km) southeast of AngloG's Cerro Vanguardia mine. The area was previously unexplored due to the presence of 50-100m of recent sedimentary cover.

The underlying terrain is interpreted to be a direct continuation of the Cerro Vanguardia mine host rocks. Initial work by Rugby included regional magnetic surveys, a tool to map the subsurface volcanic terrain. That work identified northwest trending magnetic features (lows), several of which bisect a prominent, 10km wide circular magnetic high.

Geochemical programs comprising a total of 1,740 samples have been completed to date. Recent infill sampling comprised of 229 soil samples has accomplished the following: Infill and extensional sampling at 160m spacing over the most prospective Au-Ag geochemical anomalies delineated from previous 320m spaced sampling grid. Reconnaissance sampling at 320m spacing grid on recently interpreted structural lineaments defined by 3D MVI geophysical modelling.

Sampling results define significant gold/silver anomalies with elevated values of arsenic and molybdenum. The broad distribution of the anomalies and their close association with structures suggests the El Zanjon project has captured a potential mineral field, the size of which is comparable to Cerro Moro and Cerro Vanguardia. To date, Rugby has collected 1,740 ionic leach samples and all the data was processed using the MDRU Porphyry Index Lateral (MPIx_L) developed by the Mineral Deposit Research Unit at the University of British Columbia.

This index compares metals that are enriched in the shallow parts of the porphyry system (epithermal) to those that are laterally dispersed. The index calculates values using various ratios of Sb, As, Tl to the more distal metals (Zn, Mn). The Company is confident that it has sufficiently delineated several highly prospective Au/Ag geochemical anomalies that have now reached the drill targeting stage and has recently received approval for 28 exploration drill holes totalling 4,750m.

Consequently, to aid detailed drill targeting, further ground magnetic surveying is planned at 40m spacings over the most prospective Au/Ag anomalies. This survey is planned to commence in H2 2023 following the winter season.