Do foils simply work by reflecting heat away as a mirror reflects sunlight?
Although foils can work that way it is not the main and most important way. The real reason that good quality foil stops Radiant heat is because certain materials, one being pure aluminum do not give off or emit heat. In other words no matter how much you heat up the foil, unless you actually touch the foil you would never know it is hot. So, as long as you have a void or air gap between the foil and what it is that you are protecting from the heat, Radiant heat barriers will give you almost 100% protection from the Radiant heat flow.
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