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You don’t have to be an analyst to have an idea on what is going on with metals. They play such a huge role in the overall market’s sentiment that they are naturally discussed every day on all forms of media. People love making predictions and while there is always some dispute as to what direction – or at least to what level - each metal will go in the future, the consensus seems to be “upward” in the long-term; continuing the bullish path that has been established over the last ten years for both precious and non-precious metals.

One country that has benefited from the growth trend of metals is Chile. The South American country has been a mining hub for literally hundreds of years. Dating back to the early 1800’s foreign investors have flocked to Chile because of its prolific nature for a wide variety of metals and the extremely friendly political atmosphere towards miners. Why are gold, silver, copper, etc. so abundant in Chile? Without getting to scientific, it’s simply because the country lies above the area where the Pacific plate slips under the various continental plates; something that doesn’t happen in other places on the planet. As a result, the “Ring of Fire,” an area responsible for volcanoes and 90 percent of all global earthquakes is also where rich mineralization occurs. These subduction zones result in near-surface porphyry deposits which are the most valuable copper deposits known to man. The copper does not stand alone in the deposits. Along with it come lesser amounts, but still extremely valuable, gold, silver, iron and molybdenum reserves to name a few. So can mining the Ring of Fire area be dangerous? Sure. But can it be exorbitantly rewarding? Most definitely.

In particular, when it comes to copper, Chile is king. The country is the world’s top copper producer, has the world’s largest amount of reserves and is the single-biggest exporter of the valuable metal. Annually, Chile produces a third of the world’s supply and it doesn’t look to be losing any ground. In fact, in January this year, Chile reported that it expects global copper output will reach 16.5 million tonnes, an increase of 345,000 tonnes over 2010. Of the 16.5 million tonnes of output, Chile expects to supply 5.7 million tonnes, up 6.4 percent from 2010. Moreover, Goldman Sachs estimates a 4.7% growth in global copper demand but only a 2.1% growth in global copper production for 2011; a fact that bodes very well for copper miners.

Looking to capitalize on all that Chile presents to miners, Red Metal Resources Ltd. (OTCBB:RMES) has uniquely positioned itself in the mineral hotspot. The Thunder Bay, Ontario-based mineral exploration company controls copper-gold projects in the prolific Candelaria Iron Oxide Copper-Gold (IOCG) belt in Chile’s III Region. The IOCG belt is home to Freeport-McMoRan's Candelaria Mine, Anglo American's Mantoverde Mine, Teck’s Relincho Project and Andacollo Mine and Far West’s Santo Domingo deposit. Those five projects are reported to hold nearly 2.5 billion ounces in copper and copper equivalent…and they surround Red Metal’s three properties.

Red Metal has a 100 percent ownership in its Farellon copper-gold property which is comprised of 1096 hectares. This advanced-stage exploration project has undergone exploration in the late 1990’s with 22 reverse circulation holes totaling 3,900 metres along a 1.7 kilometer strike length and 150 meters in depth. The Non-NI 43-101 compliant valuation provided a reasonable expectation of mineralization to 500 meters in depth, 7 million tonne resource and a mine plan for 1 million tonnes per annum from an underground cut and fill operation and onsite concentration plant. Additional drilling in 2009 was highlighted by a cut of 2.57% copper and 4.16 g/t gold over 5 meters. A new NI 43-101 technical report has been completed on the project.

The Mateo copper-gold project, located just south-southeast of the Farellon project, is also 100 percent-owned by Red Metal. Spanning 2,122 hectares in the same belt and formation as Freeport McMoran’s Candelaria mine, the property has an ongoing artisanal mining program and has been explored by local miner, ENAMI during 1994 through 1997. ENAMI’s efforts resulted in 16,000 tonnes mined grading an average of 3.15% copper, 45.2 g/t silver and .74 g/t gold. Non-NI 43-101 compliant inferred resource by ENAMI from 1994 showed 68,000 tonnes grading 3.6% copper, 78 g/t silver and 0.7 g/t gold.

Last, but not least, Red Metal has a 100 percent ownership of its Perth project comprised of 2,283 hectares of mining and exploration claims. Similar in geology to the Farellon property, 12 veins have been identified on the surface with fault-related copper and gold bearing quartz veins crosscutting the property. The project contains a Joint Venture Earn-In Agreement with UK-based Revonergy, Inc. to sell up to 50% ownership in exchange for the completion of exploration programs costing at least $1.415 million and a preliminary feasibility study by 2015.

If anyone can bring these projects to commercialization, the Red Metal management team certainly fits the bill as their resumes read like a “Who’s Who in the Mining Industry.” The Red Metal CEO and VP Exploration are both Professional Geoscientists who have done substantial exploration work for Teck, Goldcorp and Placer Dome, among others. The team in Chile knows the country’s landscape and business environment through years of highly-relevant experience. When reading through Red Metal management’s credentials, it is apparent that the team was assembled for the very specific purpose of success in Chile. Key members of Red Metal are experienced in finance, Canadian and U.S.-listed Company posts and hold a host of experience in Chilean mining, particularly the Chile III area. These facts are often lost amongst companies that seem to put together a “hodge-podge” of a management team, but such is certainly not the case with Red Metal.

When ends come to ends, the value of a junior miner often comes down to share structure as, quite simply, a share generally won’t be worth much if there are too many outstanding. In this category, once again, Red Metal is aligned for growth. Only 16.9 million shares are outstanding (24.7 million fully diluted). These figures equate to a tiny market cap of just over $7 million. Insiders apparently have a great deal of faith in the future growth of the Company as demonstrated through a 67 percent insider holding rate presently.

Technically speaking, the RMES stock chart is in a prime position for potential upward movement. Today’s buying pushed through resistance at both 46 and 48 cents, leaving a clear path now until $0.60. Not only because of breaking through resistance was the movement substantial in the short term, but also, more importantly in the long term aspect of the chart. Support was being drawn from a static level all the way down to $0.40, but also from the moving averages in the area of 44 cents. Technically strong charts are trading above the longer moving averages (50 and 200 day simple moving averages), which the candles were flirting with before today. Now some distance is put between the price and the MA’s which will allow them to start curling upward, a crucial component of uptrending stocks.

Today after the bell, the Company announced that they have signed an agreement to purchase the Veta Negra Property located in III Region Atacama, Chile.

The Veta Negra Property is 5,300 hectares (13,097 acres) in size consisting of eighteen exploration claims. Red Metal acquired a 100% interest in the eighteen exploration claims and concurrently signed an option agreement to purchase 100% of two mining claims totaling 44 hectares (108 acres) underlying the exploration claims.

Red Metal's geologists have reviewed the property and identified three mineralized mantos hosted in andesites on the property. One manto can be traced on surface for approximately 2 kilometres, a second manto for approximately 1 kilometre, and a third manto for approximately 500 metres. The mineralized mantos identified on surface are of variable widths averaging six metres with significant iron oxide, silica, epidote, chlorite and tourmaline alteration with copper mineralization comprised of chrysocolla, a copper oxide. With the announcement of this new acquisition coupled with some strong technical indicators and continued global growth demand for copper, this stock has plenty of ammunition for a possible price spike tomorrow and over the next few weeks as investors digest tonight's news and read more into this largely overlooked mining heavyweight in Chile.

Every trader knows that low float plays can sizzle with any pressure as there just aren’t many shares to be had on any given day. Red Metal has its “i’s dotted and t’s crossed” with respect to our checklist of a value proposition. Positioned in the most prolific copper producing land in the world with a skilled management team and the funds to get it all rolling, Red Metal is hitting on all cylinders in its early stages. It is for this reason that we at AllPennyStocks.com have decided to turn our latest American spotlight on Red Metal Resources Ltd. (OTCBB:RMES) and encourage our members to perform their due diligence and add it to their watchlist.

Read the full profile on Red Metal by clicking here.