Tallebung Tin Deposit Expansion Raises Stakes Ahead of Critical Assay Results

Diamond Drilling Confirms Large-Scale Tin Potential

Sky Metals Ltd (ASX: SKY) has kicked off its latest diamond drilling campaign at the Tallebung Tin Project in central New South Wales with a highly encouraging result. The first hole, TBD014, intersected significant zones of visual tin mineralisation at shallow depths, expanding the known deposit footprint eastward beyond the current Mineral Resource Estimate (MRE). While assay results are pending, the visual presence of cassiterite-rich quartz veins strongly suggests continuity of the tin system at depth.

This initial success underscores the potential scale of the Tallebung deposit, which remains open in all directions. The company’s Managing Director and CEO, Oliver Davies, described the result as an "excellent start" that supports the view of a very large-scale tin system. The discovery of new extensions on the eastern flank could materially increase the resource base and improve the project’s development prospects.

Ongoing Drilling and Resource Expansion Plans

The current diamond drilling program comprises five holes totaling approximately 1,000 meters, with four more holes planned following TBD014. The second hole will target an area beneath a previous drill intercept (TBRC090) that returned 10 meters at 0.69% tin from 23 meters, including a high-grade 2-meter zone at 2.68% tin. These results highlight the potential for shallow, high-grade extensions that could enhance the overall resource quality.

Following completion of the diamond drilling, Sky Metals intends to launch a large-scale reverse circulation (RC) drilling program. This next phase aims to substantially expand the MRE in terms of size, grade, and confidence ahead of mining development studies. The company is also integrating data from trenching, bulk sampling, metallurgical testing, and environmental assessments to accelerate project advancement.

Strategic Importance of Tallebung in the Tin Market

Tallebung is positioned as a near-term, open-pit tin development project with significant strategic value amid rising global demand for tin, driven by its critical role in semiconductors, electronics, and solar photovoltaic technologies. The deposit’s geology, featuring large discrete cassiterite grains amenable to low-cost ore sorting and gravity separation, offers operational advantages that could translate into competitive production costs.

Historically, the Tallebung area has been a notable tin mining region since the 1890s, with modern exploration progressively defining a large-scale hard rock resource. The recent drilling success adds momentum to Sky Metals’ efforts to delineate a robust resource base capable of supporting commercial mining operations.

Looking Ahead

With assays from the current drilling expected in March 2025, investors and analysts will be watching closely for confirmation of the visual mineralisation and its grade implications. The results will be pivotal in shaping the design of the upcoming RC drilling program and refining the geological model. Sky Metals’ integrated approach combining drilling, metallurgical testing, and environmental studies signals a methodical push towards project development.