Red Metal Ltd has announced a substantial rare earths resource of 4.8 billion tonnes at its Sybella project, located near Mount Isa in Queensland.

The Sybella project is believed to represent a new style of rare earths deposit for Australia and potentially the world, characterized by rare earths hosted in partly weathered and fresh granite.

This granite-hosted deposit type may simplify mining processes compared to traditional clay-based sources, making it easier to extract valuable materials.

Sybella contains critical elements for electric vehicle engines, including neodymium, praseodymium, dysprosium, and terbium.

Early metallurgical tests reveal that 21% of the mineral basket's value is derived from high-demand heavy rare earth elements.

Initial tests show favorable metallurgy, indicating competitive capital and operating costs for mining and processing.

Refining drill spacing could enhance resource classification, potentially accelerating economic studies and further development.

Upcoming activities at Sybella include heritage surveys and infill drilling of near-surface high-grade material, although recent bushfires have caused temporary delays.

Red Metal plans to focus on infill drilling at Sybella and initiate an early-stage drill campaign at the nearby Gidyea prospect, which has potential for a large-scale iron oxide-copper-gold breccia system.

Additionally, a drill program is set to commence at the Lawn Hill silver-lead-zinc project, supported by $390,000 in funding from the Queensland government.

The company is actively exploring funding options with governments and end-users to ensure long-term investment viability.

If successful, Sybella could lead the way in Australia for producing heavy rare earths, which are predominantly mined in significant quantities in China.