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Red Metal Resources Signs Mining Agreement at Carrizal IOCG Project
Vancouver, British Columbia--(Newsfile Corp. - May 14, 2026) - RED METAL RESOURCES LTD. (CSE: RMES) (OTC Pink: RMESF) (FSE: I660) ("Red Metal" or the
About this update from Red Metal Resources Ltd.
[{"type":"text","content":" Vancouver, British Columbia--(Newsfile Corp. - May 14, 2026) - RED METAL RESOURCES LTD. (CSE: RMES) (OTC Pink: RMESF) (FSE: I660) (\"Red Metal\" or the \"Company\") is pleased to announce that its wholly owned Chilean subsidiary, Minera Polymet SpA (\"Polymet\"), has leased the mining rights for its 100%-owned Farellon 1/8 mineral concession, part of the Company's Carrizal Copper-Gold-Cobalt Property (\"Carrizal\" or the \"Property\"), located in Chile's Atacama Region, to Minera KMT SpA (\"KMT\"), a proven small-scale miner. Highlights 5-year, renewable mining lease agreement signed between Polymet and Minera KMT SpA Minimum monthly production of 2,500 tonnes to be maintained after a 7-month development period 2015 - 2017 mining produced 12,905 tonnes of ore containing 528,168 lbs of copper, 2,829 Oz silver, 95 Oz of gold KMT to begin mining in historic workings at Level 7 within known high-grade copper-bearing mineralization Polymet will receive a monthly revenue stream equal to 10% (minus 1.5% existing royalty) on all Cu, Ag, Au ore sales, and 15% (minus 1.5% existing royalty) for cobalt-bearing ores Mining Operations Historic mining activities contracted by Polymet at the Carrizal Property between 2015 and 2017 resulted in a total of 12,905 tonnes of sulphide ore transported to the ENAMI processing facility. This ore material was found to contain a total of 528,168 lbs of copper, 2,829 Oz of silver, and 95 Oz of gold, translating to overall grades of 1.86% copper, 7.8 g/t silver, and 0.23 g/t gold. Oxide ore in the upper levels totaled 1,814 tonnes grading 1.56% Cu (see Figures 1 & 2 below). Figure 1 - Long Section within the Farellon Project The lease agreement outlines that KMT will extract a minimum of 2,500 tonnes of ore after a seven-month development period to keep the contract in good standing, thereby providing a consistent revenue stream for Mineral Polymet SpA and Red Metal's Chilean operations. KMT is also responsible for annual taxes on the Farellon 1/8 mineral concession throughout the term of the contract. The term of the mining contract is five years and can be renewed. KMT will commence operations on the Farellon 1/8 mineral concession, a 66 hectare concession within the larger 3,278 hectare Carrizal Property. KMT plans to rehabilitate the historic workings and begin mining on Level 7 from...