THUNDER BAY, ON and VALLENAR, CHILE, May 20, 2015 /CNW/ - 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 a local mining contractor, an affiliated company, on the Farellon copper-gold project. The affiliated company is selling ore to Empresa Nacional de Mineria ("ENAMI"), a Chilean national mining company with regional processing facilities. The affiliated company pays Red Metal's Chilean subsidiary, Minera Polymet, a 10% gross revenue royalty based on ENAMI's payment for ore.
Since January 2015 a further 75 meters of mine development have been completed and the mine has reached a level approximately 35 metres vertical depth from surface. Production is now in the sulphide zone and both copper and gold are being sold to ENAMI. Since January 2015 1,079 tonnes of oxide ore with an average grade of 1.33% copper have been sold and a further 1,128 tonnes of sulphide ore with an average grade of 1.49% copper and 0.21 g/t gold have been sold.
The main target of the current development is an area intersected in the 2011 and 2013 drilling campaigns, specifically significant 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 dated Sept 21, 2011 and Jan 24, 2014). Drilling has been completed on a 1.6 kilometer strike length of this vein, and is a further 5 km of strike length is unexplored other than surface sampling showing promising results.
The Farellon property consists of eight mining and exploration concessions totaling 1,002 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 pleased with the continuing success with the contract mining. We believe this work continues to prove the viability of the potential for a larger economically viable deposit on the Farellon Property."
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.
For further information: Red Metal Resources Ltd., Caitlin Jeffs, P.Geo, CEO, 807.345.7384, [email protected], www.redmetalresources.com; Scott Rose, Corporate Communications, [email protected], T: 1.866.907.5403