Precious metals are among the most versatile plays an investor can make. Gold and silver tend to rocket while in a volatile economy, while metals with commercial uses like copper climb in periods of growth. This quality makes metals highly sought after, placing pressure on miners to increase their output and expand their properties. This in turn, is a boon for exploration outfits specializing in finding the most attractive locations.
It could be argued that the precious metal companies that will be safeguarded from economic volatility are those that have an interest in both gold and copper. Red Metal Resources (RMES), a mineral exploration company focused on aggressive growth through acquiring, exploring and developing copper-gold assets in Chile, seems to recognize the allure of that combination.
The company’s 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. The historical prosperity of this region is well documented and the company’s most recent findings don’t disappoint.
Red Metal reported 2.51 percent copper and 0.35 g/t gold over 12 meters (including 3.95 percent copper and 0.53 g/t gold over 8 meters) at their Farellon Project in III Region Atacama Project in Chile. The findings are the outcome of a 2,233 meter, 11 drill hole drill program that has succeeded in expanding the known mineralized zone down dip to approximately 200 meters vertical depth while also continuing to confirm historical results along strike. Three drill holes included approximately 100 meters each of drilling with a diamond drill bit to recover drill core. The drill core left the company more able to define the structural controls on mineralization and aid in planning for further drill programs.
This fact should is encouraging for Red Metal ‘s CEO and President, Caitlin Jeffs. “We are extremely encouraged by the results from this drilling program,” Jeffs said in a statement. “Farellon has enormous potential and warrants further drilling to outline an initial resource estimate.””
The amalgamation of the current economy and ongoing demand for gold and other precious metals with the heartening results leave Red Metal well positioned for growth. Gold, serving as a sort of reflection of attitudes toward major institutions and managed currencies across the globe tends to thrive in the present environment.