Red Metal Provides Operational Update Following Recent Rainfall in Chile's Vallenar Region
Rhea-AI Summary
Red Metal Resources (CSE: RMES, OTCPINK: RMESF, FSE: I660) reported that unusually heavy rainfall in Chile’s Vallenar region temporarily halted its induced polarization (IP) survey at the Carrizal Copper-Gold-Cobalt Property for about one week due to hazardous road conditions. The IP crew, operated by Geophysical Studies Chile, has safely remobilized, and the company does not currently expect a material impact on the overall IP program timeline.
Mining at the Farellon 1/8 concession, under lease to Minera KMT, continued uninterrupted after diversion trenches protected the mine entrance and camp. Red Metal also highlighted 2026 progress, including a completed LiDAR survey, advancing a 3D IP program that has defined a kilometre-long chargeability target, closing a non-brokered private placement, entering a lease and royalty agreement with Minera KMT, and strengthening its capital-markets presence.
Positive
- IP survey delay seen as non-material after one-week demobilization and remobilization
- Mining at Farellon 1/8 continued safely and uninterrupted during heavy rains
- Non-brokered private placement closed in Q1 2026, strengthening treasury
- Lease and royalty agreement in place with Minera KMT for Farellon 1/8 and small-scale mining advancing
- 3D IP survey defined a kilometre-long chargeability target open along strike and at depth
- Capital-markets presence enhanced via investor relations, market maker and warrant exercise proceeds
Negative
- Heavy rainfall caused about one-week demobilization of Carrizal IP survey crew
AI-generated analysis. How Rhea-AI works. Not financial advice.
Impact of Recent Rainfall on Operations
The Vallenar region of
According to Chilean meteorological and disaster-response authorities, the Vallenar area recorded approximately 104 millimetres of rainfall over the five-day period from July 15 to 19, 2026, including a peak daily total of approximately 50 millimetres on July 19. Vallenar's average annual rainfall is only on the order of 30 to 55 millimetres, meaning the region received roughly two to three years' worth of its typical annual precipitation in less than a week. The Atacama Region is one of the driest inhabited places on Earth, and the storm prompted regional emergency declarations, widespread road closures and isolation of communities across the Atacama and Coquimbo regions. The event ranks among the most significant rainfall events to affect the region since the catastrophic Atacama floods of March 2015.
Mining operations at the Farellon 1/8 concession, carried out by the lessee Minera KMT, were not affected by the rains. The operator constructed diversion trenches to direct water away from the mine entrance and the on-site camp, protecting infrastructure and allowing mining activities to continue safely without interruption.
Red Metal Resources President and CEO, Caitlin Jeffs, stated, "The safety of anyone working on our properties is our first priority, and temporarily pulling the IP team off site during dangerous road conditions was the right decision. I am pleased that our mining operator acted proactively to protect the mine entrance and their camp with diversion trenches, allowing production to continue uninterrupted. Our thoughts are with the communities across the Atacama and Huasco regions affected by these storms."
2026 Work Completed to Date
- Closed a non-brokered private placement financing in multiple tranches in the first quarter of 2026, strengthening the Company's treasury (see news releases January 8 and 19 2026).
- Completed a LiDAR survey and structural interpretation over the Carrizal Property (see news releases dated February 4, 2026 and April 22, 2026).
- Entered into a lease and royalty agreement with the lessee Minera KMT for the Farellon 1/8 concession and advanced small-scale mining and underground development, monitored through regular site visits by in-country staff (see news releases dated May 14, 2026 and July 7, 2026).
- Actively working on a three-dimensional induced polarization (IP) survey at Carrizal on two high priority blocks with Geophysical Studies Chile and reported preliminary results from the southern block, defining a kilometre long chargeability target that remains open along strike and at depth (see news releases dated April 2 & 28 2026 July 16, 2026).
- Strengthened its capital-markets presence, including engaging an investor relations firm and a market maker and receiving proceeds from the exercise of warrants (see news releases dated February 23, 2026, June 4 & 23, 2026).
Next Steps
- The IP survey crew to continue the northern block survey at Carrizal as road conditions permit.
- Small-scale mining operations at the Farellon 1/8 concession to continue under the lease and royalty arrangement.
- The Company to provide further updates on the IP program and drill targeting.
About Red Metal Resources Ltd.
Red Metal Resources is a mineral exploration company focused on growth through acquiring, exploring and developing clean energy and strategic minerals projects. The Company's current portfolio includes the Company's Chilean projects, located in the prolific Candelaria Iron Oxide Copper-Gold (IOCG) belt of Chile's coastal Cordillera, as well as the
Red Metal is quoted on the Canadian Securities Exchange under the symbol RMES, on the OTC Link alternative trading system on the OTC Pink marketplace under the symbol RMESF, and on the Frankfurt Stock Exchange under the symbol I660.
For more information, please visit www.redmetalresources.com.
Forward-Looking Statements - All statements in this press release, other than statements of historical fact, are "forward-looking information" within the meaning of applicable securities laws. Red Metal provides forward-looking statements for the purpose of conveying information about current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific, and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited to the ability to raise adequate financing, receipt of required approvals, as well as those risks and uncertainties identified and reported in Red Metal's public filings under its SEDAR+ profile at www.sedarplus.ca. Although Red Metal has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Red Metal disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.
Neither the Canadian Securities Exchange nor the Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
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SOURCE Red Metal Resources Ltd