Red Metal Resources (CSE:RMES) - Ore Delivery on Royalty-Based Copper Search Model in Chile

Matthew (0:00)

Good day.

Caitlin Jeffs (0:00)

My name is Caitlin Jeffs. I'm president CEO of Red Metal Resources. We are an exploration stage company with a project, a gold, copper, silver, cobalt project in the coastal Cordillera of Chile.

Matthew (0:12)

Good to meet you. First time we've met or spoken.

I tell you what, before we get into the story proper, tell us a bit about you. What's your background? Where have you come? What have you done? And I guess, more importantly, how's it relevant to what you're trying to do here?

Caitlin Jeffs (0:24)

Well, I'm a geologist, which is sometimes difficult, having the technical person being the top of the company. But I do have a history in public companies as well. I started off in gold exploration in Ontario, Archaean Gold with Placer Dome. Clearly the exploration side, I worked from mine sites to looking at new projects for the company in Northwestern Ontario. And if you know the history of Placer Dome, we were taken over by Barrick. And at that time, me and two partners went and put together a consulting company here with the idea of building a team to run juniors. We had come, all come from major companies looking for exploration projects. And we were used to having a team. We were used to having the 3D modeling software. We were used to having a lot of the tools that juniors don't have. And we knew that was the best way to do the work. So we put together an exploration consulting firm that paid our bills while we started public companies at the same time.

So we have had some success with that. So I've been doing public companies now on the Canadian Exchange since 2012

But at the same time, I'm also always doing exploration for clients and for the companies that we've been running.

Matthew (1:35)

Okay. And people are going to want to try and understand, like, do you know how to make money, right? So can we sort of talk about, you know, have you got experience of kind of building out firms?

Caitlin Jeffs (1:45)

Well, we've been involved with a couple of companies here in our office. But the main one that I've been involved with is Michael Thompson and I. Mike is also on the board of Red Metal.

We started Kesselrun Resources in 2012 Bit of an ominous start for a gold exploration company in Ontario. But we're fairly proud of the fact that we took it all the way to selling it recently in December.

And during that time, we never once rolled it back. We did, you know, we had our lack of success. The project that we started with, our thesis on the goal didn't work out. But we kept tracking along. We acquired new projects. We found a great project that's next to the Moss Gold deposit. And we built it out enough to become, obviously, a takeover target. And we sold to Gold X2.

Matthew (2:28)

When was that? Sorry.

Caitlin Jeffs (2:30)

December. Yeah, just this past December.

Okay. Almost a year ago now.

Matthew (2:34)

Almost a year ago now. Yeah, so we did very well.

Caitlin Jeffs (2:37)

If you look at the Gold X2 chart, our shareholders, when they got those shares, it was trading at $0.54. And it went all the way to $2 within the first three months.

Matthew (2:45)

Okay, so right, let's get into this. Red Metal, what exactly is the investment proposition? What are you?

Caitlin Jeffs (2:51)

Well, we are looking for a copper deposit in the coastal cordier of Chile. And our philosophy is that copper has been built on these mega mines. You know, 10 mines in the world produce 20% of the world's copper.

Escondida alone produces 6% now. I don't know what it was producing 15 years ago, but it was a lot more than that.

But we're coming up on a crunch in copper. And the idea is I think that smaller mines might win the day in the next decade or two. Things that can be found and outlined in single-digit years and then also developed fairly easily. So, Chile is a great jurisdiction, obviously. Everybody loves Chile. Copper as a commodity isn't going anywhere for lots of reasons. And this project has 9,000 meters worth of drilling. It's in a proven district that has an historic mine just on strike from us. So, that's what our goal is right now. You know, deposits that are sort of in the 15 million to 100 million ton range grading, sort of 1% to 2%.

Matthew (3:50)

Okay. And there's a kind of high grade. Well, so we'll talk about the high grades. Is there a royalty generating component to this, is there, or do they read it wrong?