THUNDER BAY, ON and VALLENAR, Chile, Sept. 18, 2013 /PRNewswire/ - Red Metal Resources Ltd. (OTCQB:RMES), a mineral exploration company with copper-gold assets in Chile, is pleased to announce the commencement of a 2,500 metre diamond drill program on the Company's Perth property. The program is being carried out by the optionee of the property, Chilean based Geoactiva SPA ("Geoactiva").
On April 30th, 2013 Minera Polymet Limitada, ("Polymet"), Red Metal's Chilean subsidiary, entered into an agreement with Geoactiva whereby Geoactiva acquired the option to earn 100% interest in the Perth property. To earn 100%, Geoactiva will be required to make payments totaling US$1,000,000 and incur a total of US$3,500,000 in exploration expenditures over a period of four years.
Polymet will retain a 1.5% net smelter royalty for all copper, gold and cobalt exploited on the property derived from the minerals extracted as a result of the exploitation of the property. Geoactiva may acquire 100% of the NSR once the option agreement is completed by paying in one installment US$5.00 per inferred ounce of gold and US$0.005 per inferred pound of copper in a resource estimate compliant with CIM standards on Mineral Resources and Mineral Reserves and completed by an independent third party agreed upon by Polymet and Geoactiva.
Geoactiva is a part of Mineria Activa, a private equity group focused on mining in Chile. The Mineria Activa group manages projects from exploration to production stage using their in-house team of geologists and mining engineers.
The Perth property was acquired by Red Metal in Q1 of 2011 and is located immediately northwest of the Farellon property, Red Metal's most advanced property. Both the Perth and Farellon properties are located in the historic Carrizal Alto mining district located in III Region, Chile.
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 great amounts of gold and copper. Mapping during the 2011 season outlined four major and key areas where mineralization in veins and dykes appear to be concentrated at surface, striking in two, possibly three major 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).
Caitlin Jeffs, P.Geo., President & CEO of Red Metal stated, "The fact that the Perth property is being advanced by a mining group with extensive Chilean experience affirms our belief in the value and production potential of the projects that we have assembled in Chile. We look forward to the intitial results of this extensive drill program on Perth".
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.
Red Metal Resources Ltd.
SOURCE Red Metal Resources Ltd.