EL 27266 Annual Report for period ended 18 April 2021

Abstract

Red Metal Limited is the holder and operator of Exploration Licence 27266 located 340 km east of Alice Springs. This report summarises exploration activities for the year ending 18 April 2021 and is the third Annual Report in respect of this licence. The tenement which originally comprised 164 sub-blocks was reduced to 64 sub-blocks in April 2020. Analysis of regional magnetic data has led Red Metal to identify a number of magnetic anomalies that 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. During the current term Red Metal has modelled two of the most prominent anomalies; West anomaly and East anomaly. Modelling indicates that the anomalies are sourced by steeply dipping bodies at depths of approximately 550 m and 660 m respectively. 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. Investigation into potential methods has led Red Metal to conclude that low temperature SQUID (superconducting quantum interference device) system will be required to penetrate the conductive overburden.