Tallebung Drilling Yields Up to 2.23% Tin in Shallow Intercepts

• Shallow tin intercepts with grades up to 2.23% from recent drilling
• Deposit expanded east and west beyond existing resource boundaries
• Only 25 of 75 holes reported; drilling program extended to 150 holes
• Higher-grade zones discovered off margins support rapid capital payback
• Tin price remains robust, enhancing project economics

Expanding the Tallebung Tin Footprint

Sky Metals Limited has delivered a promising update from its flagship Tallebung Tin Project in central New South Wales, revealing significant shallow tin mineralisation that broadens the known deposit. The latest batch of assay results from 25 of the 75 completed Reverse Circulation (RC) drill holes highlights strong tin intercepts, including standout grades such as 5 metres at 0.65% tin starting from just 31 metres depth in hole TBRC137, and a remarkable 1 metre at 2.23% tin in TBRC127.

These results not only confirm the presence of high-grade tin near surface but also demonstrate that the deposit remains open and mineralised beyond the current Mineral Resource Estimate (MRE) boundaries, particularly to the east and west. This expansion is critical as it suggests that the resource base is still growing, with new zones discovered off the margins of the existing resource.

Strategic Importance of Shallow, High-Grade Zones

The shallow nature of these intercepts is particularly encouraging for Sky Metals, as it aligns with the company’s strategy to target early mining of higher-grade, near-surface tin mineralisation. Such zones can facilitate a rapid capital payback by enabling quicker access to economically attractive ore, reducing upfront development costs and accelerating cash flow generation.

Managing Director Oliver Davies praised the geological team’s efforts, noting the discovery of broad, shallow, and higher-grade zones beyond the eastern margin of the existing resource. He also highlighted the strong tin price environment, which currently trades at over three times the copper price, underscoring the high value of the tin being delineated.

Drilling Program Expansion and Future Outlook

With only a third of the current drilling results reported, Sky Metals has received approvals to substantially increase its drilling program from the initial 70 holes to approximately 150 holes. This expanded program aims to further explore the deposit’s extensions and infill existing resource areas, with many new zones located away from historical workings, suggesting untapped potential.

The company anticipates a steady flow of assay results over the coming months, which will provide greater clarity on the scale and grade continuity of the deposit. The ongoing drilling and exploration efforts are pivotal in refining the resource model and advancing the project towards development.

Tallebung’s Role in the Tin Market

Tallebung is positioned as a near-term, open-pit tin development project with significant advantages, including the nature of the tin mineralisation as coarse cassiterite grains amenable to low-cost processing. Given tin’s critical role in electronics, semiconductors, and solar technologies, the project’s expansion aligns well with growing demand for secure tin supply chains.

Sky Metals’ progress at Tallebung is a noteworthy development in the Australian tin sector, potentially contributing to domestic and global supply amid tightening markets.

Bottom Line?

As Sky Metals pushes deeper into Tallebung’s untapped zones, the next tranche of drilling results will be crucial to confirming the project’s growth trajectory and economic potential.

Questions in the middle?

• How will the expanded drilling program impact the overall resource estimate and classification?
• What are the implications of these new high-grade zones on the project’s mine plan and capital expenditure?
• How might sustained strong tin prices influence Sky Metals’ development timeline and financing options?