Highlights
- Red Metal Resources (CSE: RMES) reports its lessee, Minera KMT SpA, delivered the first copper sulphide ore from the Farellon 1/8 concession to Chile’s state ore processor ENAMI on August 20-21, 2026, about four months ahead of the original schedule.
- Red Metal holds a 10% net sales royalty on ore sold to ENAMI from the concession, reduced to a net 8.5% after a pre-existing vendor royalty, generating non-dilutive revenue toward the company’s administrative costs.
- The reported 591.66 tonnes is a delivered weight only; final assay results and payment from ENAMI are still pending, and no NI 43-101 mineral resource or reserve estimate exists for the property.
Red Metal Resources Ltd. (CSE: RMES; OTCPINK: RMESF; FSE: I660) reported on September 3, 2026 that its lessee, Minera KMT SpA, has completed the first deliveries of copper sulphide ore from the Farellon 1/8 concession to Empresa Nacional de Minería (ENAMI), Chile’s state-owned ore processor, at its Vallenar plant. Farellon is part of Red Metal’s broader Carrizal Copper-Gold-Cobalt Property near Vallenar, in Chile’s Atacama region.
Ahead of Schedule
The deliveries, made on August 20 and 21, 2026 across 16 truckloads, totaled approximately 591.66 tonnes of net weight. That milestone came within about three months of the May 14, 2026 mining lease and royalty agreement between Red Metal and KMT, roughly four months earlier than the seven-month development period the original agreement called for before minimum production levels needed to be reached. Under that agreement, KMT is required to reach and maintain a minimum production rate of 2,500 tonnes per month following the development period.
How Red Metal Gets Paid
Red Metal, through its wholly owned subsidiary Minera Polymet SpA, holds a 10% net smelter return (NSR) royalty on all minerals KMT sells to ENAMI from the Farellon 1/8 concession. A pre-existing 1.5% royalty owed to the concession’s original vendor is deducted from that amount, leaving Red Metal with a net effective royalty of 8.5%. KMT is the operator and carries responsibility for all mining, permitting, and regulatory compliance; Red Metal’s role is limited to that of lessor and royalty holder, it does not conduct the mining itself. CEO Caitlin Jeffs, P.Geo., noted that with copper trading near record highs, the deal gives the company non-dilutive revenue to help cover administrative costs while it continues prioritizing drill targets elsewhere at Carrizal.
As part of its oversight rather than direct operation of the site, Red Metal has been collecting rock samples during regular bi-weekly site visits, ten samples from Level 7 of the north tunnel so far, sent to an independent lab for copper, gold, and silver analysis. Those assay results are still pending and will be reported once received; they are separate from, and will not necessarily match, the tonnage figures already reported, which come from delivered weighbridge records rather than assayed grade.
The Broader Carrizal Picture
Beyond Farellon, Red Metal has been advancing exploration work across the wider Carrizal property in 2026, including a LiDAR survey and structural interpretation, followed by a three-dimensional induced polarization (IP) geophysical survey. Preliminary results from that survey identified a kilometer-scale target where two different measurements, chargeability and resistivity, coincide in a pattern the company associates with potential mineralization; the target remains open both at depth and along strike, meaning it hasn’t been fully bounded by the survey. The company said it plans to prioritize drill targets from this data for drilling later in 2026. This is Red Metal’s second small-scale mining lease of the year, following a similar arrangement in August covering its separate Irene and Margarita concessions.
Sources
Editorial Disclosure
This article is based on a press release issued by Red Metal Resources Ltd. on September 3, 2026, distributed via PRNewswire. Securities discussed: Red Metal Resources Ltd. (CSE: RMES; OTCPINK: RMESF; FSE: I660). Mining Markets Report has not received compensation from Red Metal Resources, its management, investor relations representatives, or any third party for this coverage. No staff member or principal of Mining Markets Report holds a position in this security at the time of publication. Mining at the Farellon 1/8 concession is conducted by lessee Minera KMT SpA, not by Red Metal, which acts solely as lessor and royalty holder. The 591.66 tonne figure reported is a delivered weight derived from operator and ENAMI weighbridge records; final assay results and settlement for the delivered ore have not yet been received from ENAMI, and final valuation and payment will be determined by ENAMI’s own assays. No feasibility study, preliminary feasibility study, or other technical study demonstrating economic or technical viability has been prepared for this mining activity, and no current NI 43-101 mineral resource or mineral reserve estimate exists for the property. There is no assurance that production, or any resulting royalty revenue to Red Metal, will be realized as anticipated. Any historical grades referenced by the company are historical in nature and are not necessarily indicative of the delivered material. Statements regarding future production levels, drill target prioritization, and royalty revenue are forward-looking and involve known and unknown risks; actual results may differ materially. References to this company are for market context and analytical purposes only and do not constitute an investment recommendation. All securities carry investment risk including possible loss of capital. Coverage on Mining Markets Report is for informational and educational purposes only; Mining Markets Report is not a registered investment advisor. Readers should conduct their own due diligence and consult a qualified financial advisor before making investment decisions.
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