Red Metal Resources’ (CSE:RMES) wholly owned subsidiary, Minera Polymet, has leased its mining rights to small-scale miner Minera KMT, for the Farellon ⅛ mineral concession, part of the Carrizal Copper-Gold-Cobalt Project in Chile.
The lease agreement outlines that Minera KMT will extract a minimum of 2,500 tonnes of ore after a seven-month development period to keep the contract in good standing, thereby providing a consistent revenue stream for Red Metal’s Chilean operations. The term of the contract is five years and can be renewed.
Minera KMT will also begin operations on the Farellon mineral concessions, a 66-hectare concession within the larger 3,278 hectare Carrizal Project. The company plans to rehabilitate the historical workings and begin mining on Level 7 from which a total of 5,080 tonnes of ore were extracted between 2016 and 2017, grading 1.97% copper, 9.62 grams per tonne silver, and 0.14g/t gold.
Red Metal CEO Caitlin Jeffs says the copper bearing ore at Carrizal is readily accessible and an experienced local miner has been engaged.
“This continued mining effort on the Carrizal Property directly supports Chilean mining and local miners in the area and provides a reliable revenue stream for Chilean operations,” Jeffs says.
Red Metal Resources is a mineral explorer focused on growth through acquiring, exploring, and developing clean energy and strategic mineral projects.
Write to Aaliyah Rogan at Mining.com.au
Images: Red Metal Resources
