Red Gum Resources Ltd 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. By focussing on the discipline attached to the basic principles, 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 the Company has interests in 4 exciting tenements including the drill ready key project, La Negra in Chile.
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. Equally, its focus on multi commodity projects in the Zinc, Lead & Silver space, 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.
At La Negra, Red Gum is targeting an exploration target of 10Mt – 70Mt* (up to 20% contained metals, largely Zn, Pb + Ag), with drilling to commence in the second half of 2011, following its listing on the ASX.
*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.