Recent economic reports have painted a grim picture of the economic future, but one bright spot has emerged in recent news, leading miners and basic materials stocks higher. Manufacturing demand is on the rise, helping to bolster the businesses of those that produce the material necessary to supply them.
Between the rise of gold on recent market volatility and the increases in domestic production, both resource companies and mining companies are well positioned to thrive in this market. This could contribute to the success of Red Metal Resource Inc. (RMES), which explores for gold and copper in the resource-rich nation of Chile.
Chile is considered a top mining destination, responsible for over one-third of global copper production. The nation’s output of attractive commodities like gold and silver has been steadily growing alongside foreign investments, drawn to the nation for its stable and accommodating government policies.
The decision to permit international investment in the industry occurred only recently, meaning there remains a massive percentage of untapped resources available to drive new businesses. The lucrative potential of the area attracted the interest of Red Metal Resources, which now has four fully owned projects in the Candelaria IOCG belt located in Chile’s Region III. These pursuits have the potential to be highly profitable and the company is currently engaged in assessing the extent of that profitability.
Earlier in the week Red Metal completed a combined reverse circulation and diamond drilling program on its Farellon project and commenced a geological mapping program on its Mateo property in Region III Chile.
This consisted of a 2,234 meter drill program on its Farellon property, including 2050 meters Reverse Circulation (RC) and 184 meters diamond drilling. Red Metal is enthusiastic about the results, which will be finalized in several weeks and add to the numerous gold-copper projects with which they are currently engaged.
Red Metal last explored Farellon in the fall of 2009 with a five-hole, 725 meter, RC drill program. Significant results from that program prompted further interest in the historically prolific region.
Gold and copper prices continue to rise and the more positive exploration and drilling results that Red Metal is able to offer, the larger their growth potential will be.