(MENAFN - ProactiveInvestors - Australia) Red Gum Resources (ASX: RGX) is progressing its acquisition of the Majada Copper-Gold Project in the Iron Oxide Copper Gold belt of northern Chile with legal due diligence of claims that constitute the project now well advanced.
The company added that no significant issues have been detected to date and that due diligence is expected to be completed by early January 2013.
Majada, located 120 kilometres south of La Serena, consists of nine separate mining properties subject to eight separate letter agreements.
The project encompasses two separate copper-gold mineralised trends totalling over 5 kilometres in length.
Highlighting the prospectivity of the project, numerous historical copper-gold oxide pits and workings along the mineralised trends have reported values in excess of 1% copper and 1g/t gold.
The project is under-explored as there is no evidence of previous drilling, with limited pre-existing geophysical data supporting sulphide mineralisation beneath surficial oxides.
The company had over 1.6 million in cash at the end of November 2012.