THUNDER BAY, ON , May 13, 2014 /CNW/ - Red Metal Resources Ltd. (RMES:OTCBB) ("Red Metal") is pleased to provide project updates for activities on its Perth and Farellon Projects in III Region, Chile.
Perth Project: The optionee of the Perth Project, Geoactiva SPA ("Geoactiva") have completed payments and exploration expenditures for the first year of their four year option agreement. The third payment was made on April 30 th, 2014 and Geoactiva will be required to spend a further $3,000,000 in exploration expenditures in the next three years, including $1,000,000 in the next year. A further $875,000 US in cash payments will also be made over the next three years. Results from last year`s exploration program by Geoactiva are being assessed and will be announced in the near future.
The Perth property is 2,280 hectares in size over 12 mineral concessions, and overlies the contact between the San Antonio diorite complex to the west, and a metamorphosed sedimentary unit to the east with several structurally-related veins and dykes containing significant gold and copper mineralization. Mapping during the 2011 season outlined four key areas where mineralization in veins and dykes appear to be concentrated at surface, striking in two orientations. Sampling in 2011 consisted of 129 reconnaissance samples over the entire property, with assays of up to 29.93 g/t gold and 7.74% copper (see news release March 27th, 2012 ).
Farellon Project: A Chilean mining group, Minera Farellon, has commenced mining activities on the Farellon project. Minera Farellon will pay a 10% royalty on all payments made by the Chilean national mining company, ENAMI, to Minera Farellon on ore sales from the Farellon property. Minera Farellon has been approved for an initial 500 tonnes per month permit for mining and is presently applying to increase the permit to 2,500 tonnes per month.
Development commenced in January and has reached a depth of approximately 20 metres. Minera Farellon is working towards several drill intercepts that start at 35 metres vertical depth and include intercepts in drill holes FAR-11-001 of 3.95% Cu and 0.53 g/t Au over 8 metres, FAR-13-002 of 2.15% Cu and 0.28 g/t Au over 7 metres and FAR-13-001 of 0.70% Cu and 0.20 g/t Au over 6 metres including 1.25% Cu and 0.34 g/t Au over 2 meters (see news releases Sept 21, 2011 and Jan 24, 2014 ) Results of ore sales from the Farellon Project are expected soon
The Farellon property consists of seven mining and exploration concessions totaling 1,053 hectares in the Carrizal Alto mining district located approximately 75 kilometers northwest of the city of Vallenar, 150 kilometers south of Copiapo and 20 kilometers west of the Pan American Highway. The property is easily accessible year round by dirt roads that crisscross the property and is located close to power, water and a major urban centre, Copiapo, with a readily available mining workforce.
About Red Metal Resources Ltd.
Red Metal Resources is a mineral exploration company focused on aggressive growth through acquiring, exploring and developing copper-gold assets in Chile . Our projects are located in the prolific Candelaria iron oxide copper-gold (IOCG) belt of Chile's coastal Cordillera, host to Freeport-McMoRan's Candelaria Mine and Anglo American's Mantoverde Mine. Red Metal is a fully reporting US public company quoted on the OTCQB under the symbol RMES. For more information, visit www.redmetalresources.com.
Except for the statements of historical fact, the information contained herein is of a forward-looking nature. Such forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievement of the company to be materially different from any future results, performance or achievements expressed or implied by statements containing forward-looking information. Accordingly, you should not place undue reliance on statements containing forward looking information. The U.S. Securities and Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We may use certain terms in our press releases, such as "measured," "indicated," and "inferred" resources, which the SEC guidelines generally prohibit companies from including in their filings with the SEC. Investors are urged to consider closely the disclosure in our Form 10-K, which may be obtained from us, or from the SEC website.
SOURCE Red Metal Resources Ltd.