Farellon

Overview

• Located in the Coastal Cordillera of Chile in the Cretaceous Iron Belt home to numerous IOCG deposits, including the Candelaria Copper Gold deposit and the Manto Verde copper deposit.
• On the prolific Atacama Fault System
• Low elevation, close to Capiapo, a major mining centre with experienced exploration and mine personnel and services
• 23 kilometres from seawater
• 1,234 ha of exploitation concessions (mensuras in Chile)
• Several past drill programs including ~3,000 metres in 1996/97, ~700 metres in 2009 and another ~2,200 metres in 2011
• Numerous historic artisanal mine workings throughout property
• Along strike from the historic Carrizal Alto mine

Location

The Farellon property consists of eight, wholly owned, mining concessions totaling 1,234 hectares in the Carrizal Alto mining district located approximately 75 kilometres northwest of the city of Vallenar,  150 kilometres south of Copiapo  and 20 kilometres 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 centre, Copiapo, with a readily available mining workforce.

Geology & Mineralization

The Farellón property lies on the western margin of the northern portion of the Chilean Coastal cordillera at the contact between Paleaozoic metasediments and late Jurassic diorites and monzodiorites.

The Farellón property lies over the sheared contact of Paleozoic metasediments in the western portion and Jurassic diorite in the eastern portion. The contact between the metasediments and the diorite is a mylonitic sheared contact striking north-northeast and dipping approximately 65 degrees to the northwest.  The metasediments are composed of quartz-feldspar-hornblende gneisses.  The diorite underlying the eastern portion of the project area has been extensively intruded by intermediate mafic dykes oriented north-easterly.  Locally, a small stock-like felsic body, called Pan de Azucar, with lesser satellite dykes intrudes the diorite. The intrusive relationship between the diorite and metasediments always appears to be tectonic.

The contact zone between the metasediments and the diorites is a mylonitic shear zone ranging from 5 to 15 m in width and host to mineralized quartz-calcite veins.  To the north the veins splay off to the east into the diorites.  The southern concession of the Farellón property covers a 1.7 km section along strike of the sheared contact and the northern claims overlie a further 750 metres o f the sheared contact as well as a 1.7 km section of the veining splayed into the diorite.

Vein type, plutonic hosted IOCG deposits such as Carrizal Alto and by extension the Farellón property are characterized by a distinct mineralogy that includes not only copper and gold but also cobalt, nickel, arsenic, molybdenum and uranium.  All of the IOCG deposits are partially defined by their iron content in the form of either magnetite or hematite. Typically the vein deposits of the coastal Cordillera are chalcopyrite, actinolite and magnetite deposits.

History

Mining in the region was historically focused on the Carrizal Alto area to the north of the main Farellón property. However, the Farellón project was mined on a limited basis during the 1940’s when Carrizal Alto had for the most part already shut down. Very little information regarding the mining has survived but there is a small amount of historical data located in the SERNAGEOMIN national archives in Santiago.

Historical records indicate that copper mining commenced at Carrizal Alto in the 1820's and continued on a significant scale, mostly by British companies, until 1891 when disastrous flooding occurred and mines closed. The historical reports indicate that the larger mines were obtaining good grades over significant widths in the bottom workings at the time of closure. It is estimated that during this period, in excess of 3 million tonnes with grades in excess of 5% copper and widths of 8m was extracted as well as there was a large quantity of direct shipping ore at 12% copper. At one time there was a considerable body of tails present to support to these figures but the high gold and copper prices over the last few years has lead to the trucking and reprocessing of this material.

A reverse circulation (RC) drill program of 22 drillholes totaling 3,918 metres was completed in 1996-1997. The drilling was conducted at irregular intervals along the mineralized shear and they were sampled at regular one metre sample intervals along their entire length. The drilling confirmed mineralization in the shear zone down to a vertical depth of approximately 200 metres. Significant intersections from this drilling are:

	Significant Interval (m)			Assay Results
Drill Hole	From	To	Length	Cobalt (%)	Copper (%)	Gold (g/t)
FAR-96-006	49	54	5	0.0083	0.73	0.15
FAR-96-007	25	34	9	0.016	1.05	0.38
FAR-96-009	57	84	27	0.033	0.91	0.51
FAR-96-010	31	36	5	0.039	0.68	1
FAR-96-011	20	26	6	0.019	0.46	0.67
FAR-96-013	86	93	7	0.039	1.68	0.87
FAR-96-014	77	83	6	0.062	0.85	0.66
FAR-96-015	59	79	20	0.056	0.98	0.99
and	99	109	10	0.029	1.02	0.18
FAR-96-016	24	26	2	0.02	1.57	0.95
and	64	70	6	0.07	0.81	0.73
FAR-96-020	14	16	2	0.464	1.85	0.46
and	39	43	4	0.024	0.9	0.75
FAR-96-021	22	25	3	0.106	5.29	4.17
FAR-96-022	29	39	10	0.044	1.31	1.53
and	100	108	8	0.057	2.49	3.72
FAR-96-023	50	53	3	0.06	1.1	0.48
and	59	64	5	0.03	0.78	0.28
and	132	147	15	0.025	1.42	0.6
FAR-96-024	33	36	3	0.059	2.89	0.94
FAR-96-025	65	85	20	0.021	1.22	0.97
FAR-96-028	55	58	3	0.059	0.52	0.12
FAR-96-029	30	34	4	0.066	1.15	0.18
and	82	87	5	0.011	0.96	0.09

2009 Exploration

Red Metal’s first substantial exploration drilling program of 5 reverse circulation holes, totalling 725 metres, was conducted in September, 2009. The drill program was designed to confirm mineralization from the 1996 drilling and to begin to test mineralization at depth. Significant intersections from this drilling are:

Significant Interval (m)				Assay Results
Drill Hole ID	From	To	Core Length	Cobalt (%)	Gold (ppm)	Copper (%)
FAR-09-A	31	34	3	0.023	0.81	1.99
and	79	109	30	0.017	0.18	0.62
including	97	106	9	0.039	0.44	1.63
FAR-09-B	56	96	40	0.016	0.27	0.55
including	56	63	7	0.028	0.22	0.66
and including	74	96	22	0.018	0.42	0.79
including	75	86	11	0.028	0.67	1.35
FAR-09-C	73	103	30	0.015	0.79	0.55
including	77	82	5	0.051	4.16	2.57
FAR-09-D	95	134	39	0.014	0.11	0.58
including	95	103	8	0.02	0.33	2.02
FAR-09-E	25	30	5	0.023	0.54	1.35

2011 Exploration

In 2011 Red Metal completed a 2,233 metre, 11 drill hole drill program designed to continue to expand the known mineralized zone down dip and infill in large gaps of previous drill programs. Three of the drill holes finished with diamond drill core which provided important information to aide in better defining the structural controls on mineralization. Significant intersections from this drilling are:

	Significant Interval (m)			Assay Results
Drill Hole ID	From	To	Drill Length	Cobalt (%)	Gold (ppm)	Copper (%)
FAR-11-001	36	49	13	0.063	0.35	2.51
FAR-11-003	150	155	5	0.03	0.28	0.4
and	177	182	5	0.008	0.15	0.44
FAR-11-004	141	145	4	0.008	0.01	0.73
FAR-11-005	124	133	9	0.035	0.26	0.84
FAR-11-006	80	112	32	0.023	0.99	1.35
FAR-11-007	56	74	18	0.04	0.4	0.5
FAR-11-008	98	102	4	0.022	0.26	0.85
FAR-11-009	205	211.55	6.55	0.065	0.49	1.21
including	206.5	208	1.5	0.225	1.02	0.67
FAR-11-010	179.13	183.5	4.37	0.047	0.35	0.45
FAR-11-011	52	54	4	0.024	0.37	0.58