Red Gum Resources Limited (ASX: RGX) was founded on the principles of a balanced growth portfolio which leverages the existence of high quality information to assist the real risks of undertaking any project. The Company has assembled a high quality and diversified portfolio of assets in Chile and Peru. Targeting base and precious metals, in particular lead, zinc and silver Red Gum has interests in 4 exciting tenements including the La Negra Project in Chile where drilling is currently underway.
By embarking on a rigorous project assessment during a down cycle on key commodities such as base metals, Red Gum believes it has acquired its interests at a considerable saving to current transaction values. RGX’s multi commodity focus enables it to move nimbly in response to fluctuations in a single commodity price. Clearly, as in all businesses, the focus is on the actual potential operating margin, rather than the specific commodity, but further hedges against negative movements are made in selection of the best polymetallic projects, rather than having a sole focus.
In July 2012, the Company exercised the La Negra option to take 100% ownership of the property, which required a payment of US$500,000.
At La Negra, Red Gum is targeting an exploration target of 10Mt – 70Mt* (up to 20% contained metals, largely Zn, Pb + Ag), with a large percentage of holes drilled encountering significant thicknesses of visual mineralisation, within a well-defined zone of the property.
*Under the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Resources, The Company is required to make the following statement with regard to Exploration Targets – the potential quantity and quality is conceptural in nature and that there has been insufficient exploration to defina Mineral Resource or Ore Resource and that it is uncertain if further exploration will result in the determination of a Mineral Resource or Ore Resource.