OTWAY PROJECT, PILBARA REGION, WESTERN AUSTRALIA
Rugby controls mineral property concessions which cover prospective areas for gold and copper mineralization in the Pilbara region of North Western Australia. These are now subject to a Farm-In Agreement with Calidus Resources (“Calidus”), an ASX listed company with an advanced gold project located 50 kilometers north-west of Otway. Also recently, the gold potential of the Pilbara has been highlighted by the discoveries reported by De Grey Mining (ASX:DEG) and Haoma Mining NL (ASX:HAO).
Results from initial drilling by Calidus
Calidus conducted an initial drilling programme at Otway in 2020, and expects to recommence follow-up drilling in 2021. Rugby is encouraged by Calidus success as an advanced successful explorer in the Pilbara region.
Figure One: Location of Otway tenements subject to the Farm-In Agreement. Also shown are existing prospects and the location of Calidus’ Warrawoona Project and Klondyke deposit.
Figure Two: Tenements at the Otway Project showing prospect locations
Farm-In Agreement Highlights:
Calidus to spend A$200,000, including 1,200 meters (“m”) of drilling, within 12 months of the Agreement;
Calidus to spend a further A$500,000, including a minimum of 3,000m of drilling, within 30 months of the Agreement to earn 50%;
Calidus to spend an additional A$500,000, including a further 3,000m of drilling, within 48 months of the Agreement and issue A$250,000 worth of Calidus shares at the completion of the spend using a 10-day Volume Weighted Average Price to earn 70% in Otway.
Rugby remains encouraged by the region’s prospectivity and the potential for discovery for both gold and copper. Otway satisfies all parameters required by management including:
potential for discovering a large gold and or copper deposit;
favorable permitting regime within a highly rated investment jurisdiction;
excellent infrastructure with many of Australia’s largest iron mines in the region;
year-round exploration and mining access; and
reasonable drilling costs and drill rig availability
Certain information contained herein can be considered forward Looking. Please click here to review the Company's cautionary statement for investors. Paul Joyce, the Company’s COO, Director and a “qualified person” within the definition of that term in NI 43-101, has supervised the preparation of the technical information contained on this webpage.