Gold demand has been on the rise for the past decade but the two-month bull run currently in effect has only amplified the already mounting gains. This is a positive for miners currently clamoring to acquire more sites as a means of increasing production. The call for sites benefits another related party, exploration companies; especially those with interest in Chile. The decision to authorize international investment in the nation’s mining industry occurred only recently, meaning there remains a huge and largely unparalleled percentage of untapped resources available to drive new businesses.
This reality attracted the attention of Red Metal Resources Ltd. (RMES), a mineral exploration company which now has four copper-gold assets in Chile. The company’s aggressive growth strategy, which entails acquiring, exploring and developing gold-copper projects, has positioned them well to benefit from the ascent of precious metals.
Red Metal plans to continue in this manner. The company is taking advantage of the rich resources and continuing to assess properties. The company recently announced that it would extend its exploration with Quantec Geoscience, where it will conduct a high-resolution ground magnetic survey over its Mateo property located in III Region,Chile.
The 5,244-acre site is 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.
Should Red Metal’s magnetic survey yield positive results, it could be a boon for the exploration outfit. Results from the magnetic survey will be employed in conjunction with geological mapping results, helping to better define mineralized structural features and aid in developing drill targets.
The survey will be completed on 100 meter spaced lines and readings will be taken every 10 meters, a total of 271 line kilometers will be surveyed. Quantec is expected to start the survey in the next week and data will be collected over a two week period.
At the end of the two week period Red Metal will be able to assess the extent of value for the property and ideally capitalize on the current market.