Minera Farellon, an affiliated company of Red Metal Resources, has received provisional mining permits for small-scale mining operations on the Farellon copper-gold project, located in the Candelaria iron oxide copper-gold (IOCG) belt of Chile.

The Farellon copper-gold project is located 2.4km south-west of the historic Carrizal Alto mine.

The property comprises seven mining and exploration concessions totalling 1,053ha in the Carrizal Alto mining district located 75km north-west of the city of Vallenar, 150km south of Copiapo and 20km west of the Pan American Highway.

Minera Farellon will transport and sell the ore to the national mining company ENAMI’s local processing facility in Vallenar, located 75km south of the property.

Initially, Minera is planning to focus mining activities in the north part of a 1.6km-long zone that was drilled in 1996, 2009 and 2011.

"Minera will be contracted to complete mining activities for Red Metal."

An area intercepted in drillhole FAR-11-001 with eight metres of 3.95% copper total including soluble 1.32% copper with 0.52g/t gold will be the company’s initial mining target.

Minera takes an initial 500t per month to ENAMI and pays a royalty to Red Metal on all payments received from the company.

Red Metal will direct sampling procedures, and if the results are positive the company will increase permitting to 2,500t per month.

Minera will be contracted to complete mining activities for Red Metal.

Red Metal president and CEO Caitlin Jeffs said: "We are excited to be taking this first step in the process of proving what we believe will be a larger-scale mining operation."

Red Metal projects are 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.