en.Wedoany.com Reported - Red Metal Resources Ltd has made progress in mine development at the Farellon 1/8 property in Chile. Company on-site personnel completed site visits on June 18 and July 1, 2026, confirming that the lease operator, Minera KMT SpA (KMT), is advancing underground development, with full production progress ahead of the original schedule.
Red Metal has entered into a mining agreement with KMT, under which KMT leases the Farellon 1/8 property for small-scale mining, and Red Metal receives a 10% royalty on all ore sold by KMT to Empresa Nacional de Mineria (ENAMI). In the north zone, dewatering of the historic Level 7 is approximately 90% complete, aimed at restoring access to known high-grade underground copper mineralization. Between 2016 and 2017, this level produced 5,080 tonnes of ore grading 1.97% copper, 9.62 g/t silver, and 0.14 g/t gold. Historical mining data indicates that copper and gold grades in sulfide mineralization increase and become more consistent with depth.
In the south zone, a team of two drillers and one scoop tram operator is advancing a ramp targeting mineralized veins previously intersected by drilling, with 10 meters of progress achieved to date. Historical drill results in this area include: hole FAR-11-006 returned 0.99 g/t gold and 1.35% copper over 32 meters; hole FAR-96-022 returned 1.31 g/t gold and 1.53% copper over 10 meters, and 2.49 g/t gold and 3.72% copper over 8 meters; hole FAR-09-B returned 0.67 g/t gold and 1.35% copper over 11 meters; hole FAR-09-C returned 2.44 g/t gold and 1.60% copper over 9 meters; and hole FAR-09-D returned 0.33 g/t gold and 2.02% copper over 8 meters. It should be noted that drill intersection thicknesses are not true thicknesses; true thickness is estimated to be 70% to 90% of the drill intersection thickness.
Next steps include: KMT continuing dewatering on Level 7 in the north zone, targeting production start before the end of summer; further extension of the ramp in the south zone to reach the target mineralized veins; and expected receipt of induced polarization (IP) results in July to help define drill targets.
Caitlin Jeffs, President and CEO of Red Metal Resources Ltd, stated that KMT is on track to begin production ahead of the original seven-month target, and that the company's twice-monthly site visits help closely monitor operational progress and support local Chilean miners. The technical content of this news release has been reviewed and approved by Qualified Person Caitlin Jeffs, P.Geo.
Mining at the Farellon 1/8 property is conducted by lessee KMT under a lease and royalty arrangement, with Red Metal acting as lessor and royalty holder, and is not the operator of the mining activities. This mining is not based on a feasibility study or preliminary feasibility study, nor does it have a current mineral resource or mineral reserve estimate prepared in accordance with National Instrument 43-101.
Red Metal Resources Ltd is a mineral exploration company focused on acquiring, exploring, and developing clean energy and strategic mineral projects. Its portfolio includes projects located in the Candelaria iron oxide copper-gold (IOCG) belt in the Coastal Cordillera of Chile, as well as properties in Quebec and Ontario, Canada. The company is listed on the Canadian Securities Exchange (ticker: RMES), the OTC Link alternative trading system (ticker: RMESF), and the Frankfurt Stock Exchange (ticker: I660).
For more information, visit www.redmetalresources.com.
