EL 27266 Surrender Report for period ended March 27, 2024

Abstract

Red Metal Limited was the holder and operator of Exploration Licence 27266 located 340 km east of Alice Springs. This report summarises all previous exploration and details work conducted for the term ending 27 March 2024, the cessation date of the tenement. This is the sixth and Final Report in respect of this licence. The geophysical anomalies identified within EL 27266 may represent significant mineralisation. Modelling of the two most prominent anomalies (see 2021 Annual Report); the West and East anomalies 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. Analysis and modelling of data led Red Metal to conclude that the magnetic features in the eastern portion of the tenement warrant further investigation and designed a ground gravity survey to this end. However, due to the remoteness of the tenement no contractor could by engaged to conduct the survey. Coupled with this the fall in the nickel price led Red Metal to surrender the tenement.