Analysts have been struggling to determine the direction of the global economy in recent months as warring factors, largely economic growth disparities between emerging and developed nations, become more pronounced. The lack of concrete guidance can make it difficult for investors to verify the best investment path for U.S. economic growth. Ambiguity has led to massive volatility on the markets as news reports consistently offer new and questionable perspectives. These factors have helped increase push gold up over 20 percent this year and have helped push copper to recent highs during the last several sessions.
The appeal of gold as a safe haven is one that has contributed to what has essentially been a decade long bull run. Early investors of gold may have benefited from a 200-plus percent gain on the metal during that period. As uncertainty grows, so does the price of gold. Meanwhile, the price of copper tends to climb alongside economic growth, which has slowed in the United States but is booming in China and India. Right now, there are reasons to consider investments in both gold and copper and certain mining companies allow that to happen.
Red Metal Resource Ltd. (RMES), is among these companies. A mineral exploration outfit with four copper-gold assets in Chile, Red Metal appears to be well-positioned to thrive in an economic environment driven by unlike elements.
The potential advantages offered by a copper gold company can be assessed by investigating its location and productivity of its interests. Chile, for instance, remains largely unexplored, but rich in metals, positioning it well to thrive in the event of heightened demand for industrial or precious metals. This bodes well for the future of Red Metal Resources Ltd.
Years of gold mining have depleted the resources of the U.S. and many other nations. Chile avoided this fate by only recently authorizing investments in the nations’ rich mining industry. Postponing the entrance point will likely prove lucrative for the company, should gold maintain its current levels or copper rise in price as a consequence of the construction boom in emerging nations.
The most recent results from a sampling program indicate robust potential for Red Metal. The returned assay results of reconnaissance samples taken over its 100% owned Mateo Property in Chile revealed considerable promise. A detailed mapping and sampling program over Mateo samples collected on multiple mineralized structures from mantos, veins and mineralized breccia bodies showed strong levels of both copper and gold. 36 of 138 samples returned Au results greater than 1.00g/t Au while 59 of 138 samples returned Cu results greater than 1.00% Cu.
The results, released in mid-October bode well for the potential performance of Red Metal in the uncertain economy.