Mateo

Location

The Mateo property is composed of 19 mineral concessions covering 2,328 hectares in the III Region of Chile, Region de Atacama.  The project is situated 10 kilometers east of the City of Vallenar with the highest point at approximately 1,050 meters above sea level.   The property is easily accessible year round via a well-used road going from Vallenar to the property.  The road crosses through the middle of the west half of the properties and along the southern border of the east half of the properties.  The property and is located close to power, water and an urban centre, Vallenar, with a readily available mining workforce.

Geology & Mineralization

The Mateo property is located within the brittle-ductile north-south-trending Atacama Fault System that is known to host many of the major deposits in the Candelaria IOCG belt.  Known mineralization is hosted in an andesitic volcaniclastic sequence assigned to the Bandurrias Formation. Widespread iron oxide and skarn style alteration indicates an IOCG mineralizing system further supported by significant amounts of economic grade mineralization found in six historic artisanal mines on the property.  Mineralization is found in mantos, veins and breccias.

History

 Historical work on the Mateo property includes several drill programs completed by different Chilean private and public companies.  Records exist from eight drillholes completed in 1994 on the Irene mine and include two full reports written by ENAMI (the Chilean national mining company) with interpretation of mineralization and recommendations for further exploration and mining work.

The Irene mine was investigated by ENAMI in 1994.  Work completed during this time included surface RC drilling, including 490 meters in four RC drillholes, and underground diamond drilling, including 220 meters in four drillholes.  We obtained ENAMI’s reports of mining activities from 1994 through 1997.  Approximately 11,875 tonnes of rock were mined in that time averaging 4.3% copper, 61.9 grams per tonne silver, and 1.01 grams per tonne gold.  During the period June 2009 to December 2010 the vendor of the Irene, Minera Farellon, conducted small scale mining activities on a different area of the Irene claims and mined 1705 tonnes grading 1.39% Cu, 1.39g/t Ag, 0.29g.t Au in sulphides and 1477 tonnes grading 1.98% Cu in oxides.  The difference in grade between the historic work and the recent work is not an indication that further high grade material will not be found on the Mateo property and further modeling and exploration work needs to be completed to determine the best drill targets.

A private Chilean company, Minera Taurus, drilled 16 RC holes on the east end of the Irene claim, but we have no record from this drilling. An unknown company built a portal 250 meters long and approximately three meters wide by three meters high. The portal leads to three mined-out chimneys connected to the surface providing ventilation channels.  On a recent property visit with ENAMI’s geologists, we found an extension of the mineralized zone at the base of the tunnel below showing the potential for mineral resources.

2011 Exploration

In 2011 Red Metal completed a property wide mapping and prospecting program over the Mateo property.  The geological mapping identified nine significant zones of mineralisation on the property and confirmed widespread skarn style alteration.  Reconnaissance samples were collected on multiple mineralized structures from mantos, veins and mineralized breccia bodies:

Samples of 21.72g/t Au with 0.69% Cu, 3.10g/t Au with 0.50% cu and 3.57g/t with 0.62% Cu taken from one vein traced for approximately 350 metres on surface

  • 36 of 138 samples returned Au results greater than 1.00g/t
  • 59 of 138 samples returned Cu results greater than 1.00%
  • Multiple mineralized veins, mantos and breccia bodies identified

Additional significant reconnaissance sampling results from the Mateo mapping program are listed below:

Sample Easting Northing Cu% Au g/t
201272 338,028 6,836,645 7.37 1.12
202871 336,478 6,836,158 2.63 1.14
202852 337,880 6,835,567 7.11 1.18
202849 337,880 6,834,692 10.3 1.73
201220 337898 6834724 4.29 2.07
201277 337314 6834958 9.39 2.42
202850 337,822 6,834,611 2.58 2.46
202810 338,521 6,838,037 2.44 2.49
202882 336,945 6,835,537 2.57 3.08
202812 338,504 6,838,120 0.5 3.1
202815 338,382 6,838,223 0.62 3.57
202880 336,740 6,835,991 1.46 5.7
202826 338,179 6,838,079 5.3 6.85
201217 337909 6834632 3.46 10.11
202813 338,469 6,838,147 0.69 21.72