Minera Farellon has received provisional mining permits for small scale mining operations on Red Metal Resources' Farellon copper-gold project, located in Candelaria iron oxide copper-gold (IOCG) belt of Chile.

The company will transport and sell the ore to ENAMI, the national mining company’s local processing facility in Vallenar, located 75km south of the property.

Minera plans to focus mining activities in the north part of a 1.6km long zone drilled in 1996, 2009 and 2011, and takes an initial 500t per month to ENAMI and pay Red Metal a royalty on all payments received from the company.

The initial mining target is an area intercepted in drillhole FAR-11-001 with eight metres of 3.95% Cu total including soluble 1.32% Cu with 0.52g/t Au.

Red Metal president and CEO Caitlin Jeffs said, "We are excited to be taking this first step in the process of proving what we believe will be a larger scale mining operation."

Red Metal will have access to all results of the mining, and will begin the process of increasing permitting to 2,500t per month, if results are positive, and subsequently contract Minera to complete mining activities.

The Farellon property comprises seven mining and exploration concessions totaling 1,053 hectares in the Carrizal Alto mining district located 75km northwest of the city of Vallenar, 150km south of Copiapo and 20km west of the Pan American Highway.