Yesterday, Red Metal Resources Ltd. announced that the Company signed an agreement to purchase the Veta Negra Property located in III Region Atacama, Chile. Red Metal Resources Ltd. is a mineral exploration company with copper-gold assets in Chile.
The Veta Negra Property is 3 kilometers west of Red Metal’s Mateo Project and approximately 45 minutes from the city of Vallenar. There exists major road access, power and water supply nearby. The property lies in the Cretaceous Cerrillos Formation composed of andesites, conglomerates and arenites. The Company’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 kilometers, a second manto for approximately 1 kilometer, and a third manto for approximately 500 meters.
The Veta Negra Property is 5,300 hectares (13,097 acres) consisting of eighteen exploration claims. Red Metal Resources acquired a 100 percent interest in the eighteen exploration claims and concurrently signed an option agreement to purchase 100 percent of two mining claims totaling 44 hectares (108 acres) underlying the exploration claims.
The Cretaceous Cerrillos Formation is 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 at the Veta Negra Property are of variable widths averaging six meters with significant iron oxide, silica, epidote, and chlorite and tourmaline alteration with copper mineralization consisting of chrysocolla (a copper oxide).
Red Metal Resources Ltd. purchased 100 percent 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 their exploration criteria.
The Company has an option to acquire 100 percent of the two mining claims by making four payments totaling US$104,000. This consists of US$14,000 upon signing, US$10,000 on August 15, 2011, US$20,000 on February 15, 2012 and US$60,000 on February 15, 2013. The property has a 1.5 percent net smelter royalty that can be purchased for US$250,000 at any time.
Caitlin Jeffs, P. Geo, President of Red Metal Resources Ltd., 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.”
Headquartered in Thunder Bay, Ontario, Red Metal Resources Ltd. is a mineral exploration company. They focus on aggressive growth through acquiring, exploring and developing copper-gold assets in Chile. The Company’s projects are 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.
For more information visit: www.redmetalresources.com