Revonergy Inc.
OTC Bulletin Board : RNRG

Revonergy Inc.

March 21, 2011 09:15 ET

Revonergy Enters Into Agreement to Acquire Up to 50 % of Perth Caliza Gold Project in Chile

LONDON, UNITED KINGDOM--(Marketwire - March 21, 2011) - Revonergy Inc. ("Revonergy" or the "Company"), (OTCBB:RNRG) announces that the Company has entered into a Joint Venture Earn-In Agreement ("Agreement") with a subsidiary of Red Metal Resources ("Red Metal") (OTCBB:RMES) to purchase up to 50% in the Perth Caliza gold project located in the Iron Oxide Copper Gold (IOCG) belt in Chile

The Property

The property ("Perth Property"), located in the prolific Candelaria iron oxide copper-gold (IOCG) belt of Chile's coastal Cordillera, consists of six exploitation claims totaling 918 hectares (2,268 acres) and six exploration claims totaling 1,365 hectares (3,373 acres). Red Metal, which recently acquired a 100% interest in the property, has entered into a Joint Venture Earn-In Agreement with Revonergy whereby Revonergy can earn up to a 50% ownership of the property in exchange for the completion of exploration programs costing at least $1.415 million and a preliminary feasibility study. 

The Perth Property is adjacent to the west side of the historic Carrizal Alto mine and lies approximately 3.5 kilometers north of Red Metal's Farellon project. It is a 45 minute drive from Vallenar city, with major road access, power and water supply close by. The project lies on a similar geologic contact as the Farellon and Carrizal Alto properties.

Terms of Joint Venture Earn-In

Revonergy can earn a 35% interest in the property upon the payment of $35,000 and the completion of the following, with all costs being paid by Revonergy:

  1. Phase I exploration program costing at least $115,000 within one year from signing
  2. Phase II exploration program costing at least $300,000 within two years from signing
  3. Phase III exploration program costing at least $1,000,000 and that can justify completing a preliminary feasibility study within three years from signing

Revonergy can earn a further 15% interest if it completes a preliminary feasibility study by the end of four years from signing. 

Red Metal Resources Ltd will manage the exploration work on behalf of Revonergy for which it will charge Revonergy a fee equal to 10% of the expenditures.

Perth Property Highlights

The Perth Property overlies the contact between Paleozoic metamorphic sediments and a Cretaceous tonalitic batholith. A swarm of north northeast trending fault related copper gold bearing quartz veins crosscuts the property. Surface mapping and sampling records show twelve veins identified so far on the south end of the property. The veins average two metres wide but have been measured up to six metres wide. Numerous artisanal mine workings on the property have previously been exploited for both copper and gold. Exploration work so far includes property scale geological mapping and surface sampling completed in 2007 and 2008. Significant channel sampling results are listed below.  

SAMPLE   Au g/t   Cu %   Co%   Length of Sample (m)
521617   2.5   0.39   0.03   1.0
521796   2.5   0.21   0.00   1.0
521629   2.8   0.76   0.19   3.5
56905   3.1   1.00   0.19   1.0
521610   3.5   0.30   0.02   0.5
521622   4.5   1.72   0.02   1.0
521788   4.5   0.19   0.00   2.0
56858   5.0   0.42   0.16   1.0
521789   5.5   0.29   0.00   2.0
521628   6.2   0.59   0.14   1.3
521609   10.7   0.35   0.07   1.0

Perth Property Potential

The Perth Property geology closely resembles Red Metal's Farellon project and, in management's opinion, has the potential to host a large–scale, bulk-mineable gold deposit. 

"We are really excited about this prospect and the ability to work with Red Metal's experienced management and exploration team who have been working on nearby sites for many years and have geologists that have been working in Chile for a number of years" said Ravi Daswani, Revonergy's president and CEO. "Having such a team available will allow us to be operational very quickly."

About Revonergy Inc.

Revonergy Inc. is engaged in the energy and mining business. The Company is pursuing renewable energy projects and mineral exploration projects with development opportunities in under-explored frontier territories.

Additional information can be found at www.revonergy.com.

IMPORTANT DISCLAIMER: This news release may contain "forward-looking" statements. These forward-looking statements are only predictions and are subject to certain risks, uncertainties and assumptions. Actual results may differ materially from the forward-looking statements in this press release. Additional risks and uncertainties are identified and described in the Company's SEC reports. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company does not undertake, and the Company specifically disclaims, any obligation to update any forward-looking statements to reflect occurrences, developments, events, or circumstances after the date of such statement.

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