Red Metal announces first ore shipping from Chilean project

Red Metal Resources has reported early delivery of its first copper sulphide ore shipments from the Farellon Project, part of the Carrizal Copper-Gold-Cobalt property near Vallenar, Chile.

The ore, mined by Minera KMT, was transported to the Empresa Nacional de Minería (ENAMI) processing facility, completing a project milestone well ahead of schedule.

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The deliveries occurred roughly three months after the mining agreement was signed on 14 May 2026, outperforming the original timeline by approximately four months.

Under this agreement, Minera KMT is responsible for all mining, permitting and regulatory compliance.

This development marks a significant step for Red Metal as it secures a non-dilutive revenue stream. The company will earn a 10% net sales royalty on minerals sold from the Farellon 1/8 concession, although a pre-existing 1.5% royalty reduces its royalty to 8.5%.

Exploration activities continue at the Carrizal property.

Red Metal Resources president and CEO Caitlin Jeffs said: “With copper trading near record highs, these first ore deliveries to ENAMI are a meaningful milestone for Red Metal.

“This small-scale mining activity provides the company with non-dilutive revenue to help support our general and administrative costs, while we continue to develop and prioritise drill targets at Carrizal for drilling later this year.”

In August 2026, Minera KMT stockpiled approximately 591.66t of ore, which was then transported in 16 truckloads to ENAMI on 20 and 21 August.

The agreement requires reaching a minimum monthly ore production of 2,500t after a seven-month development period.

Red Metal, through its subsidiary Minera Polymet, has collected ten rock samples from Level 7 of the north tunnel at Farellon 1/8 for copper, gold and silver analysis. These samples have been sent to an independent laboratory, with results pending.

The company also plans to continue the integration of its induced polarisation survey with existing exploration data.

Red Metal continues its oversight of the project through regular site visits by its in-country field technician, ensuring adherence to planned operational goals.