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 2022 and is the fourth 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 had planned to conduct a ground based EM survey utilising a low temperature SQUID (superconducting quantum interference device) system. However the Julimar nickel discovery by Chalice Mining in Western Australia has resulted in a high demand for contractors with this type of equipment and Red Metal has been unable to engage such a contractor to perform the planned survey at this very remote location. To advance exploration of the tenement Red Metal has designed a high quality detailed ground gravity survey over five target areas on 400 m x 400 m grids for a total of 316 stations which the company plans to conduct during the 2022 - 2023 term.