Curnamona Craton, SA - Uranium

• Significant farm-in and joint venture agreement finalised over the Lakes project with Cameco, one of the world’s largest uranium producers.
• Extensive drill program targeting giant sandstone hosted uranium deposits scheduled to begin in October this year.

Eucla Basin, SA - Zircon-Titanium

• In June, Bemax Resources Limited reported the visual occurrence of an extensive blanket of low grade, heavy mineral sand from recent drilling on the Barton project.  Assay results are due shortly.

Mount Isa Inlier, QLD - Base Metals

• Untested magnetic target adjacent to broad copper and gold intercepts on the Corkwood project planned for drilling during the September quarter.
• High-sensitivity electromagnetic surveying initiated on range of projects including Walford Creek East, Elizabeth Springs and Lily Creek.  Survey results pending.

New Fertilizer Mineral Strategy

• Swift Hills phosphate project, Queensland - Drill targets with potential to delineate large tonnages of direct-shipping grade phosphate rock located 10 kilometres south of Incitec Pivot’s Phosphate Hill Mine.  Drilling is planned this year.
• Paradox Basin, Colorado, USA - Potash prospecting permit applications covering 166 square kilometres.  Leading international potash consultants recognise significant tonnage potential for potash at depths, grades and widths potentially amenable to solution mining. Grant of permits expected later in year.

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Heavy Mineral Sands intersected on Barton Project

Joint venture partner Bemax Resources Limited (Bemax) have reported the visual occurrence of extensive, low grade,  heavy mineral  ("HM") sand from recent drilling on the Barton project located along the eastern margin of the highly prospective Eucla Basin, South Australia.   

A broad blanket of low grade HM sand has been visibly logged by Bemax on four separate drill traverses extending over a strike length of approximately 12 kilometres.  The mineralisation defined using visual grade estimates at greater than 1 percent HM ranges from about 1.3 to 2.5 kilometres wide and varies from 4.5 metres to 9 metres thick.  More significantly, the HM zone is shallow, located between 7.5 metres and 27 metres below surface and remains open along strike to the southwest and north. 

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New Exploration Agreement with Cameco for uranium exploration

Red Metal has signed a farm-in and joint venture agreement with Cameco Australia Limited (Cameco), one of the world’s largest uranium miners, over Red Metal’s Lakes uranium project in the highly prospective Frome Sub-Basin of South Australia. 

The agreement grants Cameco an exclusive right over a six-year period to explore for uranium and earn a 51% interest in any or all of four Red Metal tenements.  To earn a 51% interest in a tenement Cameco is required to sole fund A$4 million of expenditure so that if, for instance, Cameco sought a 51% interest in all four tenements it would be required to contribute A$16 million.

The joint venture ensures an active work program with a minimum total project annual commitment of $700,000 on exploration in the first year and $500,000 in subsequent years.  Once Cameco has earned 51%, Red Metal can elect to contribute to further exploration and development at a 49% interest or reduce to a 30% interest free-carried to a decision to mine.

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Boardroom Radio Interview - New Potash Initiative

Rob Rutherford, Managing Director of Red Metal Limited, talks about the company's new potash initiative.

Listen to the broadcast