Red Metal Resources Ltd. (CSE: RMES) has released a mining update for its Farellon Project at the Carrizal Copper-Gold-Cobalt Property in Chile, confirming final ENAMI settlements for August and September 2026 ore deliveries. The update shows copper and gold grades nearly doubled month-over-month as operator Minera KMT SpA advanced underground development from Level 7 to Level 9. Red Metal holds an effective 8.5% net sales royalty on minerals sold from the concession, generating approximately US$6,440 in attributable royalty revenue across the two settlement periods.

Key Points

  • Red Metal Resources Ltd. (CSE: RMES | OTC: RMESF | FSE: I660) provided a Farellon Project mining update on October 14, 2026
  • ENAMI settled 1,042.3 dry tonnes of ore for August and September 2026, with total contained copper of 9,603 kg and gold of 253 grams
  • September grades improved to 1.26% insoluble copper and 0.31 g/t gold, up from 0.66% and 0.19 g/t in August; combined ENAMI settlement value reached approximately US$75,750 before Chilean VAT
  • Investors may be watching Level 9 sample assay results and the pending ENAMI settlement for an approximately 300-tonne shipment hauled on October 8, 2026

ENAMI Settlement Results Confirm Grade Improvement Month-Over-Month

Operator KMT delivered 16 lots totalling 597.6 wet tonnes to ENAMI's Vallenar plant in August 2026, followed by 13 lots totalling 471.3 wet tonnes settled in September. ENAMI's final settlements show the August deliveries returned 0.66% insoluble copper and 0.19 g/t gold, while September deliveries — mined primarily from the newly developed Level 9 — returned 1.26% insoluble copper and 0.31 g/t gold. The combined settlement value before Chilean value-added tax totals approximately US$75,750, with royalties attributable to Red Metal of approximately US$6,440 after applying the net effective 8.5% royalty rate.

Underground Development Advances to Level 9 at Farellon North Portal

Since the lease was signed in May 2026, KMT has completed approximately 115 metres of underground development in the north tunnel workings. Level 9 reached 73.6 metres of advance as of October 8, 2026, sitting approximately 110 metres below surface. The Company's field technician observed chalcopyrite with local bornite hosted in quartz veining and stockwork at the Level 9 face in late September and early October. Nine samples from the Level 9 face and run-of-mine stockpiles have been or will be submitted to Laboratorio Químico San Lorenzo in Vallenar, with results to be reported upon receipt.

Red Metal's Royalty Structure and Non-Operator Role at Carrizal

Red Metal, through its wholly-owned subsidiary Minera Polymet SpA, holds a 10% net sales royalty on all minerals sold to ENAMI from the Farellon 1/8 concession. After deducting a pre-existing 1.5% royalty payable to the original vendor, the net effective royalty to Red Metal is 8.5%. The Company is the lessor and royalty holder — not the mine operator. Tonnages, grades, and values reported are those determined by ENAMI for commercial settlement purposes and have not been independently verified by Red Metal. No current mineral resource or mineral reserve estimate has been prepared for the property under National Instrument 43-101.