jv with bhp, page-5

Red Metal has a focused exploration strategy targeting giant
copper and copper/gold deposits in Australia containing more than 1
million tonnes of copper (or equivalent).
It has an interest in a portfolio of highly prospective
properties through a strategic alliance and sale agreements with the
world's largest listed copper producer, Phelps Dodge.
Red Metal will act as the exploration manager while Phelps Dodge
shall provide development and operational expertise if the projects
evolve to the development phase.
The portfolio was acquired over the past four years using
leading-edge exploration techniques and all the prospects are in
"fertile" or proven world-class geological terrains.
Over 7000 square kilometres of ground is in underexplored areas.
An active drilling program is scheduled with at least 24
prospective targets to be drilled over 12 months.
Three projects are to be drilled immediately after listing.
Directors note the outlook for the copper price is positive and
the gold price has recently seen a strong resurgence.
Demand for copper is forecast to grow as a result of continued
growth in world industrial production, much of which is expected to be
in the Asia-Pacific region, particularly China.
"Red Metal believes Australia remains one of the best places to
explore for giant copper-gold deposits.
"The regions in which Red Metal hold ground are known to possess
world-class deposits but these same regions remain relatively unexplored
when it comes to using the most modern techniques on the covered
portions of these terrains," chairman Russell Barwick says.
"Red Metal has assembled a highly respected board of directors
with strong technical, corporate and management experience," he notes.
Mr Barwick is a mining engineer with 29 years technical,
managerial and corporate experience in various commodities.
He initially worked for Bougainville Copper, Pancontinental
Mining and CSR.
Following this, Russell spent 17 years with Placer Dome,
culminating in being managing director of Placer Nuigini.
He then served as chief executive of Newcrest Mining.
Red Metal managing director Rob Rutherford is a geologist with
more than 17 years Australian and international exploration experience
and has been involved in generative, feasibility and management roles in
the copper, gold and base metal exploration industry.
He was formerly employed by Phelps Dodge Australasia for nine
years where he was promoted to Australian exploration manager and
internal expert on iron oxide copper-gold hydrothermal systems and
sediment-hosted copper deposits.
Non-executive director Joshua Pitt is a geologist with more than
30 years experience in exploration and corporate management.
He has had a successful career providing seed capital and
corporate services to new mining and exploration ventures which include
Golden Grove Mining, Aztec Mining, Helix Resources and Forrestania Gold.
Phelps Dodge will hold a 15 per cent strategic stake in Red
Metal upon listing.
Under the sale agreements and alliance, Red Metal has bought
Phelps Dodge's 100 per cent interest in 24 mineral licences.
Phelps Dodge has retained an option to earn back between 60 per
cent and 70 per cent of these existing tenements and any new tenements
prospective for copper.
Whenever Red Metal makes a discovery on any tenements subject to
the alliance and, if Phelps Dodge advances the project, then Red Metal's
equity will be free-carried through to a decision to mine.