RED METAL LIMITED - ASX: RDM

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Description

Red Metal Limited has implemented a range of strategies and activities designed to build a business that will generate long-term wealth for its shareholders. It has:

* Secured an interest in a portfolio of highly prospective exploration properties in Australia through Strategic Alliance and Sale Agreements with Phelps Dodge Australasia, Inc., a subsidiary of Freeport-McMoRan Copper & Gold Inc., the world's largest publicly traded copper producer.
* A focused exploration strategy targeting Australia's most productive Proterozoic terrains for giant copper, copper-gold, silver-lead-zinc and uranium deposits.
* Highly prospective exploration properties with numerous drill ready targets and an active drilling program scheduled over the next 12 months.
* A high calibre board and management team with strong technical, operational and corporate experience.
* Targeted projects prospective for base metals and uranium, commodities forecast to be in increasing demand.

Pernatty Lagoon Joint Venture - Copper-gold-uranium

Pernatty Lagoon Project The Pernatty Lagoon project, a joint venture with Havilah Resources Limited, is located less than fifty kilometres south of the Carrapeteena copper discovery where Teck Cominco announced an impressive intercept of 905 metres at 2.1% copper and 1gram per tonne gold. Red Metal has earned more than 70% of the project. An eight hole drilling program completed in 2007 identified broad intervals of intense sericite-tourmaline alteration, broad intervals of visible low-grade lead, zinc and copper sulphides and a narrow zone of hematite breccia associated with trace amounts of bornite and chalcopyrite. These elements are consistent with halo mineralization surrounding a large copper-gold deposit and have encouraged Red Metal to continue appraisal of the Pernatty Lagoon project.

Sandy Creek Project - Copper-gold-uranium

Sandy Creek ProjectThe Sandy Creek tenements located only 35 kilometres south-west of the Cannington Mine are also being targeted for Broken Hill-type mineralisation. Red Metal’s work has identified a previously untested magnetic unit interpreted as a possible ore-associated BIF horizon in a fold closure position similar to the geological setting of the nearby Cannington deposit.

Elizabeth Springs Project - Copper-gold-uranium

Elizabeth Springs ProjectIn mid-2008 four diamond core holes were completed on the regionally significant Elizabeth Springs magnetic/gravity targets. These magnetic targets are some of the largest amplitude magnetic anomalies in the Mount Isa Inlier. Three of the four holes intersected broad zones of intense pyrite alteration with associated weak copper mineralisation which is typical of an alteration halo surrounding a mineralised iron-oxide copper system.

Corkwood Project - Copper-gold-uranium

Corkwood ProjectThe Corkwood project comprises a group of tenements located 110 kilometres north-west of the Ernest Henry copper mine. A number of structurally controlled magnetic anomalies surround an interpreted magmatic centre. Drilling on the Jimmy Creek prospect in early 2008 intersected a broad zone of hydrothermal breccia in felsic volcanic rock containing visible low-grade copper mineralisation interspersed with narrow intervals of moderate to high grade copper mineralisation. Best assays results included 86 metres from 401 metres at 0.22 percent copper including 12 metres from 401 metres at 0.7 percent copper, 0.26g/t gold. The strong brecciation and potential for high grade styles of copper mineralisation has encouraged further exploration over the project area.

Naraku Project - Copper-gold-uranium

The Naraku project is a group of tenements surrounding the Ernest Henry copper mine. Red Metal has identified several untested high-amplitude magnetic targets which have a similar magnetic signature and structural setting to that observed over the Ernest Henry deposit. Red Metal plans to rank the identified targets with detailed gravity surveys prior to drilling.

Maronan Joint Venture Project - Silver-lead-zinc

The Maronan project is centred on two extremely high amplitude, large wavelength, magnetic targets located 90 kilometres north of the giant Cannington silver-lead-zinc mine. Drilling on Maronan is targeting the depth extension of two parallel lead-silver mineralised BIF horizons for Cannington-type mineralisation. Drilling in 2007 by BHP Billiton intersected significant widths of moderate to high-grade lead-silver mineralisation in both the upper and lower BIF horizons. Three deep holes below the known mineralisation were completed in 2008. BHP Billiton withdrew from the joint venture in 2010 and Red Metal is seeking a new partner. Infill drilling is planned above -400 metre RL with the aim of defining a silver and lead resource.

McKinlay Joint Venture Project - Silver-lead-zinc

At McKinlay, BHP Billiton has identified a significant 200 metre wide zone of moderate-strength Broken Hill type alteration with anomalous silver, lead and zinc mineralisation which has been named the Breena prospect. This sulphide mineralisation is hosted in veins, has a high silver to lead ratio and is interpreted as possibly being remobilised from a nearby stratabound source. BHP Billiton plans to drill test at least two targets on the McKinlay joint venture.

St Andrews Project - Silver-lead-zinc

The St Andrews project is wholly owned by Red Metal and covers a regionally significant magnetic target located about 120 kilometres north of the Cannington deposit. This anomaly is interpreted as being related to possible BIF horizons similar to those spatially associated with the silver-lead-zinc mineralisation at both Maronan and Cannington.

Mallapunyah / Urapunga Projects - Silver-lead-zinc

Urapunga and Mallapunyah projects are located within the highly prospective McArthur Basin in the Northern Territory and target sedimentary hosted silver-lead-zinc deposits similar to the giant McArthur River or Century mines. Negotiation of access agreements with the Northern Land Council on behalf of the traditional owners is ongoing. Both groups of traditional owners have welcomed exploration on their land.

NE Broken Hill Project - Silver-lead-zinc

This project abuts the northeast boundary of the group of mining leases containing the giant Broken Hill lead-zinc-silver deposits in NSW. Airborne gravity anomalies possibly sourced from structural or stratigraphic repeats of the Broken Hill lodes are targeted.

Lakes Project - Uranium

Lakes/Frome uranium projects The Lakes Project targets roll-front uranium deposits hosted in the Tertiary sedimentary sequences within the district containing Heathgate Resources Pty Ltd’s Beverley uranium mining operations and Four Mile discovery and the Goulds Dam uranium resource. The tenements cover the highly prospective Namba and Eyre formation sequences which host the Beverley, Four Mile, Goulds Dam and Honeymoon deposits. High resolution airborne electro-magnetic surveying has been completed and drilling is planned to test the selected targets.

A high resolution airborne electro-magnetic surveying (REPTEM) was flown over the region by Red Metal for the first time. The new data has successfully mapped major basement faults thought to play an important roll in the localisation of prospective sand seuqences containing uranium mineralisation. In addition the new data has successfully mapped the possible northward extension of the paleo-channel which hosts the Goulds Dam uranium resource into Red Metals tenement.

Frome Joint Venture - Uranium

The Frome Joint venture project covers tenements located in the north-western portion of the metal-rich Curnamona Province, targeting Olympic Dam style mineralisation in basement rocks as well as uranium in the younger sedimentary cover rocks. Recent processing and interpretation of new, high resolution airborne electro-magnetic data (REPTEM) has successfully mapped the previously unrecognised, northward extension of the Paralana fault system on to the Frome joint venture projects (EL 3695 and EL 3197, Red Metal earning 70%). The Paralana fault system is a deep seated, long life structural zone which is interpreted to play an important roll in the localisation of prospective sand sequences and uranium mineralisation at the Beverley and Four Mile deposits located only 40 kilometres to the south west. REPTEM data has mapped the extension of this structure into the Frome joint venture area as well as several other deep penetrating faults elsewhere in the Lakes project which are also considered highly prospective targets for uranium mineralisation. Under the terms of the PlatSearch joint ventures, Red Metal can earn 51% by spending $1M on exploration and can elect to spend an additional $2M to earn a 70% equity.

The Algebuckina Project - Uranium

Algebuckina uranium projectThe Algebuckina project is located along the eastern margin of the northern Gawler Craton and targets Olympic Dam style copper-gold-uranium mineralisation in the basement rocks as well as sandstone hosted, roll-front type uranium mineralisation in the overlying sedimentary cover sequences.

Ooldea Projects - Zircon-titanium

Eucla Basin projects The Ooldea projects cover Tertiary beach sands deposited in the Eucla Basin along the western margin of the Gawler Craton where Iluka Resources Ltd have discovered four significant zircon-rich heavy mineral sand resources, the Jacinth, Ambrosia, Tripitaka and Gulliver deposits. More recently Dominion Mining Limited discovered a large area of greater than 1% heavy mineral sand at their Barton West project, northwest of Red Metal’s Barton tenement.

A review of historic drill data on the Barton tenement has highlighted anomalous heavy mineral sand concentrations worthy of immediate follow-up drilling including 10 metres from 24 metres at 1.45% heavy minerals and 4 metres from 22 metres at 3.81% heavy minerals. Drilling is planned for this calendar year. An agreement allowing exploration access over the Ooldea tenements was signed by Red Metal and the Maralinga Tjarutja community. Red Metal are currently negotiating joint venture funding on these exciting tenements.

Mine For

copper, gold, uranium, silver, lead, zinc, zircon, titanium

Location of operation(s)

Queensland, South Australia, USA

Address

Level 15 , 323 Castlereagh Street
SYDNEY, NSW, AUSTRALIA

Phone

(02) 9281 1805

Email

Website

http://www.redmetal.com.au/

Last Updated

10/02/2011