Red Metal Site Visit Confirms Development Progress at Carrizal IOCG Project
Rhea-AI Summary
Red Metal Resources (OTC: RMESF) reported progress at its Farellon 1/8 concession, part of the Carrizal copper-gold-cobalt project in Chile. Lease operator KMT is advancing underground development in both North and South Mine areas, with Red Metal earning a 10% sales royalty on ore sold to ENAMI.
De-watering of historic Level 7 in the North Mine is ~90% complete, restoring access to zones that previously yielded 5,080 tonnes at 1.97% Cu, 9.62 g/t Ag and 0.14 g/t Au. The South Mine portal has advanced 10 metres toward a vein with historic drill intercepts up to 3.72% Cu.
KMT indicates development toward full production is ahead of schedule, with production targeted before the original seven‑month goal and by end of summer. Red Metal staff will visit twice monthly to oversee operations and sampling, while IP survey results expected in July will support further drill targeting.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Positive
- Red Metal earns 10% sales royalty on all ore sold to ENAMI
- Level 7 de-watering ~90% complete, enabling access to past ore zones
- Historic Level 7 output of 5,080 tonnes at 1.97% copper
- Development toward production reported ahead of original seven-month target
Negative
- Production has not yet commenced; first output targeted by end of summer
- South decline still advancing toward target vein, not yet reached
Vancouver, British Columbia--(Newsfile Corp. - July 7, 2026) - RED METAL RESOURCES LTD. (CSE: RMES) (OTC Pink: RMESF) (FSE: I660) ("Red Metal" or the "Company") is pleased to provide an operational update on the small-scale mining activities at its Farellon 1/8 mineral concession, part of the Company's Carrizal Copper-Gold-Cobalt Property ("Carrizal" or the "Property") in Chile's Atacama Region.
The update follows recent site visits by Red Metal's in-country staff, who will be visiting the operation twice monthly to monitor progress by lease operator Minera KMT SpA ("KMT"). KMT signed a mining agreement with Red Metal (see news release May 14, 2026) leasing the Farellon 1/8 mineral concession for small-scale mining. Red Metal will collect a
Highlights
Red Metal's in-country staff completed site visits June 18th and July 1st, 2026, confirming that mine development by KMT is actively underway at Farellon 1/8, and will continue to visit twice monthly.
De-watering of the historic Level 7 workings at the North Mine is approximately
90% complete, restoring access to known high-grade underground copper mineralization.The South Mine portal has been advanced 10 metres in the direction of a mineralized vein intersected by previous drilling
KMT advises that the path to full production operations is ahead of schedule
Site Visit and Operational Update
During recent site visits, Red Metal's in-country staff met with KMT's mine shift supervisor to review operational activities and report on progress. As part of the Company's ongoing oversight of the lease, Red Metal staff will conduct site visits twice monthly to evaluate progress, take samples and ensure KMT is adhering to all terms of the contract. KMT is currently working on road construction, building camp infrastructure, and advancing underground development in both the North and South Mine areas.
Figure 1 - scooptram on Southern decline Figure 2 - miners camp Figure 3 - Northern portal with dewatering lines
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Underground Development
In the north workings, de-watering of the historic Level 7 workings is approximately
In the south sector, a crew of two drillers and a scoop tram operator continue to advance the decline toward a previously drilled vein with intercepts in the area. Intercepts listed below are historic drill intercepts in the area being targeted by the Southern decline.
Table 1 - historic drill intercepts targeted by the Southern Decline
| Hole ID | Depth From m | Depth To m | Length m | Au g/t | Cu % |
| FAR-11-006 | 80 | 112 | 32 | 0.99 | 1.35 |
| FAR-96-022 | 29 | 39 | 10 | 1.31 | 1.53 |
| FAR-96-022 | 100 | 108 | 8 | 2.49 | 3.72 |
| FAR-09-B | 75 | 86 | 11 | 0.67 | 1.35 |
| FAR-09-C | 77 | 86 | 9 | 2.44 | 1.60 |
| FAR-09-D | 95 | 103 | 8 | 0.33 | 2.02 |
Drill intercepts are not true widths; true widths are estimated at between 70
Figure 4 - Farellon site with surface sampling results and North and South mine portal locations
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Red Metal Resources President and CEO, Caitlin Jeffs, stated, "The reports from our in-country team are encouraging, confirming active development and steady progress on many fronts with an experienced local crew. With de-watering of Level 7 well advanced and the south tunnel approaching the target vein, KMT is on track to begin production before the original seven month target. Having our staff on-site twice a month gives us close oversight of the operation as it advances, while continuing to support local Chilean miners and providing a reliable revenue stream from our Chilean operations."
Next Steps
KMT will continue to de-water Level 7 in the northern mine sector in preparation for the commencement of production by end of summer
the southern mine sector will be further extended until the target mineralized vein is reached.
IP results expected in July to aide in drill targeting
Cautionary Statement
Mining at the Farellon 1/8 concession is being carried out by the lessee, Minera KMT [SpA], under a lease and royalty arrangement. Red Metal is the lessor and royalty holder and is not the operator of the mining activities. The mining is not based on a feasibility study, preliminary feasibility study or other technical study demonstrating economic or technical viability, and no current mineral resource or mineral reserve estimate has been prepared for the Property under National Instrument 43-101.
Qualified Person
The technical content of this news release has been reviewed and approved by Caitlin Jeffs, P. Geo, who is a Qualified Person ("QP") as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects.
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 claims in Quebec and Ontario, Canada.
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.
Contact:
Red Metal Resources Ltd.
Caitlin Jeffs
President & CEO
1-866-907-5403
invest@redmetalresources.com
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/304172