2009-01-20 - Red Metal Announces the Acquisition of Four Mineral Properties at Auction

OTC Bulletin Board: RMET

THUNDER BAY, ONTARIO--(Marketwire - Jan. 20, 2009) - Red Metal Resources Ltd. (OTCBB:RMET) is pleased to announce that it has acquired four mineral properties through its Chilean subsidiary, Minera Polymet Limitada.

Red Metal bought the Estrella, Canas, Margarita and Caminada properties, all in the highly prospective Candelaria IOCG belt, on November 27, 2008, when the regional government held a mineral property auction in Vallenar for Region III properties whose owners had defaulted on outstanding property tax payments. The last Region III property auction was held in 1997.

The Estrella property is made up of eleven mensura mining and exploration concessions totaling 1400 hectares. The property is located 30 kilometers southeast of Vallenar. The Estrella property was owned by ENAMI, the national mining company, and last explored in 2000 by Phelps Dodge who obtained results with up to 2.38% copper from surface grab samples. The property consists of a sequence of iron rich tuffs and volcanic breccias with copper oxide mineralization related to faulting. As the legal owners of the property, Red Metal is in the process of obtaining all results and reports ENAMI may have on the property.

The Canas property is made up of three mensura mining and exploration concessions totaling approximately 700 hectares. The property is located 33 kilometers southeast of Vallenar and 7 kilometers east of the Estrella property in the silver-lead-zinc belt that runs south from Chanarcillo in the limestone and calcareous shales of the Chanarcillo group. The property contains the historic Las Canas mine which was mined from 1922 to 1928 and produced 8000 tonnes at 25% lead and again in 1942 and produced 5912 tonnes at 18.08% lead and 83 grams per tonne silver.

The Margarita property is made up of one mining and exploration concession totaling approximately 56 hectares. The property is 7 kilometers east of Vallenar and is located, along strike, between two recently active mining properties. The area is known to have copper oxide mantos which give way to copper sulphides at depth, although only copper sulphides have been observed on the Margarita. Grab samples from workings on the Margarita property returned results of up to 6.9% copper and 3.7 grams per tonne gold.

The Caminada property is made up of one mining concession totaling approximately 40 hectares. The property is located 43 kilometers northeast of Vallenar in the El Jote area where several small copper-gold operations are located.

Once the results of the auction are registered with the ministry of mines in Chile, Red Metal will own 100% of these properties. Red Metal paid $11,200 for the Estrella property, $1,800 for the Canas property, $16,800 for the Margarita property, and $1,000 for the Caminada property. All figures are in USD.

Red Metal's president, Caitlin Jeffs P.Geo., stated, "The mining property auction presented a rare opportunity to acquire interesting mining properties at a great price and increase our land holdings in Chile."

About Red Metal Resources Ltd.

Red Metal Resources Ltd. is engaged in acquiring, exploring and developing natural resource properties in Chile with headquarters in Thunder Bay, Canada.

This press release may contain forward-looking statements. The actual results could differ materially from a conclusion, forecast or projection in the forward-looking information. Certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information.