Red Metal’s Sybella Project Doubles Resource Area with 81% Rare Earth Extraction

Rare Earths – Sybella Project Breakthrough

Red Metal Limited has made notable progress at its Sybella rare earth elements discovery in Queensland’s Mount Isa Inlier. Recent bottle roll pH optimisation tests on samples from the Kary Zone revealed optimum rare earth oxide (REO) leach extractions within a narrow acidic range (pH 1.7 to 2.5), achieving neodymium and praseodymium recoveries of 76-81%. This metallurgical advancement points to a potentially low-cost heap leach processing method, a significant step for a granite-hosted deposit with large tonnage potential starting from surface.

Further encouraging results include low sulphuric acid consumption and minimal iron and aluminium impurities, with research identifying an in-heap method to remove iron impurities, potentially reducing processing costs. Geological mapping during the quarter has expanded the interpreted surface area of the Kary Zone from approximately 3.5 to 8.2 square kilometres, nearly doubling the resource footprint and setting the stage for upcoming column leach test work and comminution studies planned for the next quarter.

Copper-Gold Exploration Accelerates with Government Support

Red Metal’s copper-gold projects in Queensland, notably Gulf and Three Ways, have received a combined $400,000 in collaborative drilling grants from the Queensland Government. Drilling is underway at the Three Ways magnetic target, while Gulf’s standout gravity target drilling is scheduled to commence in August 2025. These targets are situated in underexplored extensions of the Cloncurry terrain, with Gulf’s GT09 gravity anomaly comparable in scale to South Australia’s Oak Dam copper-gold discovery, underscoring the potential for significant mineralisation.

Gold Targets in Western Australia Progress

In Western Australia, Red Metal is advancing its Pardoo and Pulkarrimarra projects. At Pardoo, located within the prolific Pilbara Craton, electrical geophysical surveys and soil sampling have refined drill targets indicative of Hemi-style gold mineralisation. Drilling is planned to start in late August or September, pending rig availability. Meanwhile, at Pulkarrimarra in the Paterson Province, drill pad and track preparations are underway with diamond core drilling to follow. The region’s renewed prominence, highlighted by recent major discoveries and corporate transactions, adds strategic value to these gold and copper-cobalt targets.

Maronan Metals Subsidiary Advances Resource and Mining Study

Red Metal’s 44% owned subsidiary, Maronan Metals Limited, has updated its Mineral Resource Estimate for the Starter Zone at the Maronan lead-silver and copper-gold project in Northwest Queensland. The infill drilling has nearly doubled the tonnage of the Indicated Silver-Lead resource and confirmed a near 100% conversion from Inferred to Indicated categories, enhancing confidence in the deposit’s geological continuity. An early-stage Mining Study is underway, with results expected shortly, potentially paving the way for future development in a mining-friendly jurisdiction near established operations.

Financial Position and Outlook

Red Metal reported a strong cash position of AUD 7.99 million at quarter-end, supporting ongoing exploration activities across its portfolio. The company also benefited from government grants and a Research and Development tax refund, underscoring external validation of its innovative approaches, particularly at Sybella. While definitive mining studies and production timelines remain pending, the combination of metallurgical progress, resource upgrades, and strategic drilling programs positions Red Metal as a company to watch in the rare earth and base metals sectors.