EL 27266 Annual Report for period ended 18 April 2019

Abstract

Red Metal Limited is the holder and operator of EL 27266 located 340 east of Alice Springs. This report summarises exploration activities for the year ending 18 April 2019 and is the first annual report in respect of this licence. Work to date comprised a limited review and modelling of geophysical data, review of previous exploration and planning of ground based EM surveys. Work to date has identified geophysical anomalies within EL 27266 which may represent mineralisation similar to that at KGL Resources' Jervois project to the north-east where magnetite - chalcopyrite mineralisation contains significant copper and gold; or intrusive related pyrrhotite hosted nickel-copper mineralisation. Further exploration of the identified anomalies is impeded by the depth of Eromanga Basin sediments up to 200 metres thick which prevents the use of airborne electromagnetic methods and will therefore require the utilisation of ground based EM surveys which will be logistically challenging considering the remoteness of the area and the difficult terrain.