Red Metal (ASX: RDM) has commenced drilling on the northern hinge zone copper-gold target at its Maronan project in Queensland.
The current drill hole is situated 200 metres north of a previous copper-gold intersection of 115 metres iron and copper sulphide at 0.8% copper and 0.5 grams per tonne gold, which included 13 metres at 1.6% copper.
Detailed ground gravity and electromagnetic surveying have highlighted the potential of the hinge zone, with mineralisation interpreted at 400 to 600 metres below surface.
Red Metal is targeting a large scale copper-gold system that is blind to surface and comparable with the geology of the Osborne copper-gold mine owned by Barrick Gold Corp (TSE: ABX). Barrick acquired the project from Placer Dome Inc. in 2006 for $10.4 billion.
Drilling is expected to take about four weeks to complete, and given the scale of the target, RDM shares are likely to increase in price leading into results.
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