Red Metal Unveils Massive Rare Earth Resource and Accelerates Key Drilling Programs
Red Metal Limited's December 2024 quarterly report reveals a landmark rare earth discovery at its Sybella Project, alongside advancing multiple base metals and gold targets across Australia. The company is progressing towards a mine scoping study while preparing for further drilling and metallurgical testing in 2025.
- Sybella Project defines 4.8 billion tonnes Inferred Mineral Resource of rare earth oxides
- Infill drilling and pH optimisation tests underway to upgrade resource confidence
- Multiple base metals and gold targets drilled or prepared for drilling in Queensland and Western Australia
- Maronan Metals subsidiary advances silver-lead-copper resource with mine development studies
- Successful $6 million capital raising supports ongoing exploration and development activities
A Rare Earth Giant Emerges at Sybella
Red Metal Limited’s December 2024 quarterly report spotlights a transformative milestone with the Sybella Project in Queensland’s Mount Isa Inlier. The company has defined a globally significant Inferred Mineral Resource of 4.8 billion tonnes grading 302 ppm NdPr and 28 ppm DyTb, rare earth elements critical to high-tech and clean energy applications. Notably, 788 million tonnes of this resource is weathered granite starting at surface, offering promising early mining potential.
While the maiden resource estimate was announced in October 2024, recent infill drilling commenced to upgrade portions of the resource to Indicated status. Although a bushfire curtailed the program, 19 holes were completed with assay results expected imminently. Concurrently, pH optimisation tests on weathered granite samples aim to refine metallurgical processing parameters, with results due next quarter. These efforts underpin Red Metal’s push towards a mine scoping study, supported by preliminary internal mine modelling.
Expanding Base Metals and Gold Footprint
Beyond Sybella, Red Metal is actively advancing several base metals and gold projects. In Queensland, drilling at Lawn Hill and Gidyea targeted gravity anomalies with assay results pending, supported by Queensland Government grants. The Three Ways project plans a drill test on a strong conductive anomaly, while the Gulf project awaits approval for a 2025 drill program.
In Western Australia, the Pardoo Project is poised for proof-of-concept drilling following heritage surveys, targeting Hemi-style gold mineralisation and lithium pegmatites in the prolific Pilbara Craton. The Great Sandy Project (formerly Yarrie) in the Paterson Province has identified Havieron and Winu-style copper-gold targets, with heritage clearances secured and drilling preparations underway.
Maronan Metals: Building Towards Mine Development
Red Metal’s 44% owned subsidiary, Maronan Metals Limited, continues to impress with infill drilling that bolsters confidence in its lead-silver-copper resource in Northwest Queensland’s Carpentaria Minerals Province. Early assay results reveal wide intercepts of ore-grade mineralisation, prompting accelerated mine-ready studies and permitting efforts for an exploration decline. A resource update is scheduled for Q2 2025, marking a critical step towards potential production.
Financial Position and Outlook
Supporting these exploration and development activities, Red Metal completed a $6 million capital raising via a share purchase plan in November 2024. The group ended the quarter with $10.8 million in cash, split evenly between the parent company and Maronan Metals. Quarterly exploration and evaluation expenditure totaled $3.2 million, reflecting the company’s commitment to advancing its diverse project portfolio.
Red Metal’s strategy of targeting globally significant deposits across rare earths, base metals, and gold, combined with government-backed drilling grants and a strong cash position, positions it well to deliver value in the evolving critical minerals landscape.
Bottom Line?
As Red Metal advances resource upgrades and metallurgical studies, upcoming assay results and drilling outcomes will be pivotal in shaping its rare earth and base metals growth trajectory.
Questions in the middle?
- Will the upcoming infill drilling at Sybella confirm an upgrade to Indicated Mineral Resource status?
- How will pH optimisation test results influence the metallurgical processing approach for Sybella’s weathered granite?
- What impact will assay results from Lawn Hill, Gidyea, and Maronan have on near-term development plans?
