Red Metal’s $2.7M Capital Boost Fuels Rare Earth and Base Metal Exploration

Rare Earths – A New Processing Pathway at Sybella

Red Metal Limited has reported a breakthrough in its rare earth element (REE) processing at the Sybella project in Queensland. Innovative ion exchange resin tests on pregnant leach liquors have demonstrated a simplified and more cost-effective impurity removal process. This new method replaces the traditional two-stage process with a single ion exchange step, promising significant capital and operating cost savings while improving REE recoveries. Large column heap leach tests on various ore types are underway, with results expected by the end of the first quarter of 2026. These advancements position Sybella well for progression towards pre-feasibility studies later this year.

Gold Exploration – Early Signs at Pardoo

In Western Australia’s Pilbara Craton, Red Metal completed its first drill tests targeting Hemi-style gold mineralisation at the Pardoo project. Although assays revealed only weakly anomalous gold values in sedimentary cover sequences, an intriguing southeastward increase in gold tenor and associated arsenic and antimony trace elements suggests a vector towards more significant mineralisation. The company is considering follow-up drilling along a three-kilometre section of the granite-greenstone contact, aiming to better define potential gold deposits in this underexplored corridor.

Copper-Gold Advances – Pulkarrimarra and Nullarbor

Red Metal’s maiden diamond core drilling program at the Pulkarrimarra project in the Paterson Province, a region renowned for tier-one deposits, was completed late in the quarter. Assay results are pending, but the project benefits from proximity to major discoveries by industry leaders, underscoring its potential. Meanwhile, a new joint venture with Artemis Resources was established to drill test a standout gravity and magnetic target at the Nullarbor project in Western Australia. Artemis will conduct the initial proof-of-concept drill, with the option to earn a majority interest by investing $5 million over three years. Preparations, including heritage surveys, are underway for drilling in early 2026.

Maronan Metals Stake – Silver and Copper-Gold Momentum

Red Metal holds an 88.5 million share stake in Maronan Metals Limited, which owns the Maronan silver-rich lead and copper-gold project in Northwest Queensland. The project’s favourable environmental setting, simple metallurgy, and high-grade silver deposits have attracted growing recognition. Coupled with recent surges in silver, gold, and copper prices, Maronan’s share price has more than doubled from around 30 cents to over 60 cents this quarter. Metallurgical testwork released by Maronan indicates strong copper recovery and a significant increase in gold recovery to the copper concentrate, supporting its advancement towards mine development licensing.

Corporate and Financial Overview

Red Metal raised approximately $2.69 million through the exercise of options during the quarter, bolstering its cash position to nearly AUD 4.93 million. Exploration and evaluation expenditure remained robust at $1.27 million, reflecting ongoing activity across multiple projects. The company also submitted two co-funding grant applications to the Queensland Government for drilling on key Gulf and Lawn Hill targets, underscoring its strategic approach to leveraging government support. No substantive mining production occurred during the period, consistent with Red Metal’s focus on exploration and resource definition.

Looking ahead, Red Metal plans to continue advancing its portfolio with follow-up drilling on promising gold and copper targets, further optimisation of rare earth processing techniques, and progressing joint venture collaborations. The company’s diversified project base across Queensland, Western Australia, South Australia, and the Northern Territory offers multiple avenues for growth amid favourable commodity market conditions.