Red Metal Acquires 5300-Hectare Veta Negra Property, III Region Chile
THUNDER BAY, ON, July 6, 2011 /PRNewswire/ - Red Metal Resources Ltd. (OTCBB:RMES), a mineral exploration company with copper-gold assets in Chile, today announced that it has signed an agreement to purchase the Veta Negra Property located in III Region Atacama, Chile.
The Veta Negra Property is 5,300 hectares (13,097 acres) in size consisting of eighteen exploration claims. Red Metal acquired a 100% interest in the eighteen exploration claims and concurrently signed an option agreement to purchase 100% of two mining claims totaling 44 hectares (108 acres) underlying the exploration claims.
The Veta Negra Property is located 3 kilometres west of Red Metal's Mateo Project and approximately 45 minutes from the city of Vallenar, with major road access, power and water supply close by. The property lies in the Cretaceous Cerrillos Formation composed of andesites, conglomerates and arenites. Red Metal's geologists have reviewed the property and identified three mineralized mantos hosted in andesites on the property. One manto can be traced on surface for approximately 2 kilometres, a second manto for approximately 1 kilometre, and a third manto for approximately 500 metres.
Veta Negra Property Highlights
The Veta Negra Property lies in the Cretaceous Cerrillos Formation, an epiclastic and volcaniclastic sequence of fluvial conglomerates and sandstones of volcanic origin and freshwater limestones all overlain by volcanic breccias and lava flows. The mineralized mantos identified on surface are of variable widths averaging six metres with significant iron oxide, silica, epidote, chlorite and tourmaline alteration with copper mineralization comprised of chrysocolla, a copper oxide. Channel sampling results from Red Metal's evaluation of the property include:
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Terms of Veta Negra Property Purchase and Option Agreement
Red Metal purchased 100% of eighteen exploration claims on the Veta Negra Property for a one-time payment of US$3,500 and the transfer of four generative concessions that do not meet our exploration criteria.
Red Metal has an option to acquire 100% of the two mining claims by making four payments totaling US$104,000: US$14,000 upon signing, US$10,000 on August 15th, 2011, US$20,000 on February 15th, 2012 and US$60,000 on February 15th, 2013. The property has a 1.5% net smelter royalty that can be purchased for US$250,000 at any time.
Caitlin Jeffs, P.Geo., president of Red Metal, stated, "The addition of Veta Negra gives Red Metal its fourth highly prospective exploration project in the Candelaria IOCG belt. We believe that we have assembled one of the most attractive, best-positioned exploration packages in the belt and we look forward to advancing our projects."
Michael Thompson, P. Geo., vice president of exploration for 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 ofChile'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 OTCBB 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 at http://www.sec.gov/edgar.shtml