If there’s one thing the global markets appear confident of in recent months, it’s that there is nothing that can be certain. The bevy of challenges encroaching on the health of the global markets has been the prime driver behind a two-month bull run for gold.
Gold is among the few remaining safe havens and after a brief decline the precious metal is attracting investors looking to anchor their portfolio once again. The desire for safety amid the uncertainty has driven up demand, putting greater pressure on miners to acquire new sites in order to increase production. The call for sites benefits another related party, exploration companies, especially those with interest in areas where there remain considerable unexplored resources. The number of places that fit this bill have dwindled as years of mining left many areas barren. Chile is among the exceptions to this reality, having only recently authorized investment in the nation’s rich mining industry. The delay on this decision has given Chile an advantage over many other areas that have long been mined to capacity. Today, the nation’s resources are even more valuable than they may have been in a different economy, a fact that can potentially benefit new businesses and the investors who seek them out.
The nearly unparalleled potential of the region drew the attention 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 profit from the climb of precious metals.
Red Metal, cognizant of the immense possibility of further discoveries within the region, continues to assess properties within the region. 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.
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. Should it yield positive data, Red Metal would be well positioned for the present circumstances.
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 close of the two week period, Red Metal can assess the extent of value for the property and ideally capitalize on the current market.
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