The direction of the global economy is among the most disputed points in current discourse. Strong and speedy expansion in Asia and other emerging nations is being thwarted by plodding domestic growth and a debt-laden Europe. Right now, it’s difficult to determine which of these factors will trump the other. This puts investors in a pickle. How can they position themselves for a future that is so uncertain? Options are limited.
They could invest in gold, considered to be a go to for volatility or in an industrial metal like copper which would climb in the event of economic growth. Then there is the other possibility of investing in a miner that offers both copper and gold. Red metal Resource Ltd. (RMES), a mineral exploration company with four copper-gold assets in Chile fits that bill exactly.
Exploration companies, especially those with interest in areas like Chile, that remain largely unexplored but rich in metals, are likely to thrive in the coming years. The number of places that fit this description decline in time with historically gold and metal rich regions becoming depleted alongside demand. Chile remains among the exceptions to this reality, having only recently authorized investment in the nation’s rich mining industry. The delay on permitting mining has positioned Chile well for the current market where metals, especially gold , are pricy and in high demand. With a high potential for supply and strong demand, exploration companies with ties to producing properties in the region are likely to reap financial benefits that exceed those possible in another economy.
The ability to be successful in a range of economies is an attractive and elusive quality for a public company. An exploration outfit that can not only gold, which ascends in weakness and copper, which shines during periods of economic strength make a business even more appealing. Chile remains among the few regions with the capacity to offer such qualities in abundance.
Red Metal, mindful of the mammoth potential for ongoing discoveries within the region, continues to assess properties and expand upon their existing projects. 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.
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