Red Metal Resources Provides Mining Update for Farellon Property
December 18, 2014
THUNDER BAY, ON and VALLENAR, CHILE, December 18, 2014 – 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 Minera Farellon, an affiliated company, on the Farellon copper-gold project. Mineral Farellon will be selling ore to Empresa Nacional de Mineria (“ENAMI”), a Chilean national mining company with regional processing facilities and paying Red Metal’s Chilean subsidiary, Minera Polymet, a royalty.
Minera Farellon has provided Red Metal with an update on activities. Approximately 250 meters of mine development have been completed and has reached a level approximately 28 metres vertical depth from surface. Production has just started on a vein face averaging 7 metres wide. A first load of 446.5 tonnes of ore has been delivered to ENAMI; grades are listed in the table below. A Red Metal geologist has visited site and confirmed the width of the vein and the nature of the mineralization and noted strong oxide, supergene mineralization consisting of chalcocite, azurite, malachite and tenorite.
Table 1: Ore grades shipped to ENAMI
|
Shipping Date |
Tonnes |
Grade (Cu%) |
|
04/11/2014 |
23.75 |
2.86 |
|
04/11/2014 |
23.49 |
2.85 |
|
04/11/2014 |
49.34 |
2.38 |
|
04/11/2014 |
48.67 |
1.24 |
|
05/11/2014 |
24.94 |
1.64 |
|
05/11/2014 |
23.15 |
1.18 |
|
05/11/2014 |
26.44 |
1.07 |
|
05/11/2014 |
25.75 |
1.31 |
|
05/11/2014 |
26.29 |
1.11 |
|
05/11/2014 |
24.93 |
1.19 |
|
11/11/2014 |
12.18 |
1.23 |
|
12/11/2014 |
13.05 |
1.11 |
|
13/11/2014 |
13.33 |
1.69 |
|
14/11/2014 |
11.08 |
1.60 |
|
19/11/2014 |
15.79 |
1.98 |
|
19/11/2014 |
15.08 |
2.07 |
|
20/11/2014 |
12.52 |
2.14 |
|
21/11/2014 |
15.19 |
1.39 |
|
21/11/2014 |
14.09 |
1.83 |
|
24/11/2014 |
14.55 |
1.41 |
|
25/11/2014 |
12.89 |
1.36 |
| Total |
446.5 |
1.67 |
Minera Farellon has applied to ENAMI for a grant available to artisanal miners for development costs. Based on ENAMI’s evaluation of the geology and existing mine development, Minera Farellon has been approved for US$50,000 in a combined grant and low interest loan specifically for use on development at the Farellon Property. As part of the grant process Minera Farellon has also applied for and received expanded permitting to mine up to 1,000 tonnes per month.
The main target of the current development is an area intersected in the 2011 and 2013 drilling campaigns, specifically 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). The target area is at 35 meters vertical depth from surface.
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 to see that Minera Farellon has successfully obtained, and increased the tonnage for, their mine permits and received grants and loans from ENAMI. We see this as confirmation of Chile’s positive mining atmosphere.”
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.
Contact:
Red Metal Resources Ltd.
Caitlin Jeffs, P.Geo, CEO
807.345.7384
caitlin.jeffs@redmetalresources.com
www.redmetalresources.com
Or
Red Metal Resources Ltd.
Scott Rose
Corporate Communications
T: 1.866.907.5403