Red Lake Exploration, Inc.
OTC Bulletin Board : RLKX

Red Lake Exploration, Inc.

September 27, 2007 09:30 ET

Red Lake Exploration, Inc. Announces the Option to Purchase Mina Farellon, a Mineral Property Located in III Region, Chile

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 27, 2007) - Red Lake Exploration, Inc. (OTCBB:RLKX) is pleased to announce that it has signed an agreement to acquire the Mina Farellon mineral property through an option assigned to its Chilean subsidiary, Minera Polymet Limitada.

The Farellon property is located in Chile's III Region in the highly prospective Candelaria Iron Oxide Copper Gold (IOCG) Belt, home of the Phelps Dodge Candelaria Mine. The Candelaria copper mine has been in production since 1993 and has reported proven reserves of 283 million tonnes grading 0.64% copper. Recent surface sampling on the Farellon property has returned values of up to 6.7% Cu, and ICP analysis of surface samples indicates mineralogy assemblages consistent with classic IOCG deposits. Historic drilling on the property has intersected sulphide and oxide mineralization to a depth of 150 metres and outlined a 1.7 kilometre strike length. Significant intersections included:

9m 3.72 g/T Au 2.49% Cu 0.06% Co
3m 4.17 g/T Au 5.29% Cu 0.11% Co
10m 1.53 g/T Au 1.31% Cu 0.04% Co
20m 0.97 g/T Au 1.22% Cu 0.02% Co

The Farellon property is a forty-five minute drive from Vallenar, a city with a population of approximately 40,000 people, and forty kilometers from the Pan American Highway.

To complete its acquisition, Red Lake must pay $250,000 when the agreement is formalized in Chile and recorded in the register of mines, $300,000 in May, 2008, and a monthly royalty equal to the greater of $1,000 and 1.5% of net smelter returns to a maximum of $600,000, all in US dollars.

Red Lake president, John Di Cicco, stated, "The company is very excited about the purchase of Farellon and expanding its operations into Chile."

About Red Lake Exploration, Inc.

Red Lake Exploration, Inc. is engaged in the acquisition, exploration and development of natural resource properties in Canada and Chile with headquarters in Richmond, Canada.

Red Lake Exploration, Inc.

John Di Cicco, President

Contact Information

  • Red Lake Exploration, Inc.
    John Di Cicco
    (604) 961-0301