THUNDER BAY, ON and VALLENAR, CHILE, June 5, 2014 /PRNewswire/ - Red Metal Resources Ltd. (OTCQB:RMES), a mineral exploration company with copper-gold assets in Chile, is pleased to provide an update on mining activities being conducted by Minera Farellon, an affiliated company, on the Farellon copper-gold project. Minera Farellon has a permit to mine up to 500 tonnes per month on the Farellon project.
Minera Farellon has provided Red Metal with an update on activities. Mining development has reached approximately 20 meters vertical depth. The main target is an area intersected in 2011 and 2013 drilling campaigns included intercepts in drill holes FAR-11-001 of 3.95% Cu and 0.53 g/t Au over 8 meters, FAR-13-002 of 2.15% Cu and 0.28 g/t Au over 7 meters and FAR-13-001 of 0.70% Cu and 0.20 g/t Au over 6 meters including 1.25% Cu and 0.34 g/t Au over 2 meters (see news releases Sept 21, 2011 and Jan 24, 2014) The target area is at 35 meters vertical depth from surface. During mining development the vein zone has been intersected several times and ore material has been removed and sold to ENAMI, a Chilean national mining company with regional ore processing plants. A royalty of 10% of ENAMI payments will be paid to Red Metal. Results of these shipments are listed below.
% Cu Soluble
Once Minera Farellon reaches the target depth their goal is to sell 500 tonnes per month to ENAMI. Red Metal will direct sampling procedures to ensure we are maximizing the information recovery from the mining operations and we will get access to all results of the mining. If results are positive, Red Metal will begin the process of increasing permitting to 2,500 tonnes per month and Minera Farellon will then be contracted to complete mining activities for Red Metal Resources.
The Farellon property consists of six mining and exploration concessions totaling 753 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 center, Copiapo, with a readily available mining workforce
Caitlin Jeffs, P.Geo., President & CEO of Red Metal stated, "we are excited to see development progressing on the Farellon project. For Red Metal we are gaining valuable information about the nature of the vein system that will aide in future exploration programs."
Caitlin Jeffs, P. Geo., President & CEO of Red Metal, the project's Qualified Person as defined in NI 43-101, has reviewed and approved the contents of this news release.
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.