Red Metal Ltd (ASX: RDM) has officially commenced a pre-feasibility study (PFS) for its Sybella rare earth project, located about 20 kilometres southwest of Mount Isa in Queensland. The study aims to evaluate the economic viability of using heap leach processing to extract rare earths from the project’s Kary Zone ores.

To advance the project, the company has engaged three Queensland-based consultants: DRA Global, AMDAD, and The Core Group. These teams are tasked with designing the mine, developing an efficient processing flow sheet, and estimating the infrastructure costs required for development. The study will assess various operational scales, ranging from 10 million tonnes to 25 million tonnes of ore per annum, while also examining the feasibility of building an on-site acid plant versus purchasing acid externally.

This development follows two years of metallurgical testing, which focused on optimizing heap leaching criteria for the unique, granite-hosted deposit. Unlike common clay-hosted or monazite-dominated rare earth deposits, the Sybella ore is characterized by soluble fluoro-carbonate minerals. The company reports the granite host is competent, clay-poor, and non-acid consuming, qualities that facilitate crushing and stacking into permeable heaps for acid leaching. These metallurgical efforts previously progressed from early-stage ion exchange trials in November 2025 to the current formal pre-feasibility stage.

The PFS serves as a critical step in providing a robust economic assessment for the asset. By defining the project’s technical parameters and refining cost expectations, the study is expected to provide the necessary data to facilitate future off-take negotiations with potential end users. Furthermore, the findings will assist in preparing a gap analysis to guide the company toward a definitive feasibility study, which is currently scheduled to commence in 2027. The project team also anticipates that the results may strengthen the company's position when seeking potential funding support from government entities.

Looking ahead, Red Metal aims to deliver the results of this study program by late 2026 or early 2027. The project’s reliance on bulk mining techniques and ambient temperature, weak sulphuric acid leaching is designed to ensure the development remains cost-effective as it moves through the upcoming study phases. The focus remains on establishing a simple, repeatable processing method that can scale effectively with the deposit’s large tonnage potential. As the PFS proceeds, the company will continue to refine its approach to the Kary Zone, with specific attention given to the potential for separating produced mixed rare earth carbonates into individual oxides. Investors and stakeholders can expect further updates on the progress of the study as the consulting team moves through the design and optimization phases over the coming months.

Read the full announcement: Sybella Rare Earth Heap Leach Pre-Feasibility Study Underway