Red Metal drills giant rare earths project near Mount Isa

5000-metre campaign aims to upgrade Kary Zone ahead of prefeasibility study

By LineZotpaper

Published22 October 2026

Read Time2 min

Sources2 outlets

Red Metal has kicked off a 5000-metre drilling program at its Sybella rare earths project near Mount Isa, Queensland, targeting both infill and extensional zones as it works toward a prefeasibility study due early next year.

Red Metal is pursuing a two-pronged drilling strategy at Sybella. Infill drilling will target near-surface, higher-grade zones in the southeast corner of the nearly five-billion-tonne resource, aiming to boost confidence in the area earmarked for initial mining. Extensional drilling will test the interpreted southeast extension of the Kary Zone, where limited historical drilling and surface mapping have hinted at potential for higher-grade mineralisation beyond the current footprint.

The campaign builds on mapping and metallurgical results from the past two years, which have focused on proving up a low-cost, heap-leach development scenario. Column leach tests have already delivered extraction rates of 70 to 78 per cent for the magnet rare earths neodymium and praseodymium, using a low-intensity acid leaching process.

Assay results from the current drilling are expected early next year. The data will feed into an updated mineral resource estimate for the Kary Zone, which will then be used in the final mine model for the Sybella prefeasibility study, targeted for completion in the first quarter of next year.

Red Metal has already defined a 4.795-billion-tonne inferred resource at Sybella. The company says the sheer scale and potential for zero-strip mining make bulk-tonnage processing methods such as heap leaching an attractive option. Results from mining-scale column leach tests, including a six-metre column and a coarser-crush two-metre test, will be reported in the coming months and used in economic assessments.

While Sybella is the flagship, Red Metal is also progressing a “Big Copper” strategy, hunting giant iron-oxide-copper-gold discoveries in the Mount Isa province, near established deposits such as Ernest Henry and Osborne.

Analysis

Why This Matters

Red Metal is de-risking what it believes could be a globally significant rare earths project at a time when Western nations are seeking alternatives to Chinese-dominated supply chains.
The heap-leach processing route, if proven at scale, could enable a low-cost operation with minimal environmental disturbance, potentially making the massive resource economically viable.
Results from this drilling and the upcoming prefeasibility study will determine whether Sybella moves toward development, with implications for Australian critical minerals production and employment in the Mount Isa region.

Background

Rare earth elements, especially neodymium and praseodymium, are essential for permanent magnets used in electric vehicles and wind turbines. China dominates rare earths processing. Heap leaching is a lower-cost alternative to traditional processing, but its application to rare earths is still being refined. Red Metal’s Sybella project is notable for its very large inferred class resource and high ratio of valuable magnet rare earths.

Key Perspectives

[Red Metal]: The company sees Sybella as a potential low-cost, large-scale operation that could help supply the West’s magnet metals needs. The ongoing drilling and metallurgical tests are designed to confirm the viability of heap leaching and upgrade the resource estimate.

[Critics and skeptics]: While the resource is enormous, it is at an early inferred stage. The heap-leach process must be demonstrated consistently at scale, and economic viability depends on rare earths prices and development costs. Environmental approvals and community acceptance will also be factors.

What to Watch

Assay results from the current drilling campaign, expected in early 2027.
Results of the mining-scale column leach tests, due in the coming months.
Completion of the prefeasibility study in the first quarter of next year, which will provide a clearer picture of project economics.

Sources

Rare earths resource boost in sight as Red Metal drills Qld giant · Sydney Morning Herald - Latest News
Rare earths resource boost in sight as Red Metal drills Qld giant · The Age - Latest News

Checked

11 claims in this story checked against 1 source: 11 supported.

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SupportedRed Metal is drilling at the giant Sybella rare earths project near Mount Isa.Sydney Morning Herald - Latest News: “Red Metal has fired up the drill rigs for a 5000-metre drilling tilt at its giant Sybella rare earths project near Mount Isa in Queensland”
SupportedThe drilling campaign covers 5,000 metres and aims to upgrade the Kary Zone ahead of economic studies.Sydney Morning Herald - Latest News: “Red Metal has fired up the drill rigs for a 5000-metre drilling tilt at its giant Sybella rare earths project near Mount Isa in Queensland, aiming to both upgrade and extend its priority Kary Zone deposit ahead of upcoming economic studies.”
SupportedThe campaign includes infill and extensional drilling at Sybella.Sydney Morning Herald - Latest News: “Infill drilling will focus on Sybella’s southeast corner of its nearly five-billion-tonne resource”
SupportedInfill drilling targets near-surface, higher-grade zones in the southeast corner to boost confidence in the area earmarked for initial mining.Sydney Morning Herald - Latest News: “targeting broad, near-surface, higher-grade zones to boost confidence in the area earmarked for initial mining.”
SupportedExtensional drilling will test the interpreted southeast extension of Kary, where historical drilling and mapping have hinted at higher-grade mineralisation beyond the existing footprint.Sydney Morning Herald - Latest News: “extensional drilling will step out to test the interpreted southeast extension of Kary, where limited historical drilling and surface mapping have hinted at the potential for higher-grade mineralisation beyond the already massive mineralised footprint.”
SupportedColumn leach tests have delivered extraction rates of 70 to 78 per cent for neodymium and praseodymium using a low-intensity acid leaching process.Sydney Morning Herald - Latest News: “Column leach tests have already delivered promising extraction rates of 70–78 per cent for the valuable magnet rare earths neodymium and praseodymium, using a low-intensity, lower-cost acid leaching process.”
SupportedAssay results from the current drilling are expected early next year.Sydney Morning Herald - Latest News: “Red Metal says assay results from the current campaign are expected early in the new year.”
SupportedThe Kary Zone resource estimate will be updated for use in the final mine model for a prefeasibility study targeted for completion in the first quarter of next year.Sydney Morning Herald - Latest News: “The data will be used to update the mineral resource estimate for the Kary Zone, which will then feed into the final mine model for the Sybella prefeasibility study. The company has slated completion of the prefeasibility study in the first quarter of next year.”
SupportedRed Metal has defined a 4.795-billion-tonne inferred resource at Sybella.Sydney Morning Herald - Latest News: “The company has already defined a monster 4.795-billion-tonne inferred resource at Sybella”
SupportedMining-scale column leach test results, including a six-metre column and a coarser-crush two-metre test, are expected in the coming months and will inform economic assessments.Sydney Morning Herald - Latest News: “Results from both a six-metre column and a coarser-crush two-metre test will be reported in the coming months, then extrapolated into economics and the soon-to-be-upgraded resource.”
SupportedRed Metal is pursuing a “Big Copper” strategy to hunt giant iron-oxide-copper-gold discoveries in the Mount Isa province near the Ernest Henry and Osborne deposits.Sydney Morning Herald - Latest News: “Red Metal is also ramping up a new “Big Copper” strategy, hunting giant iron-oxide-copper-gold (IOCG) discoveries in the famed Mt Isa province, at the doorstep of nearby heavyweights, the Ernest Henry and Osborne deposits.”