Tallebung Drilling Yields 7.44% Tin and 686g/t Silver Upgrades, Over 100 Holes Planned

• Multiple new shallow, high-grade tin and silver zones identified
• Significant assay upgrade for drill hole TBRC171 with silver grade increased by over 5%
• Drilling approvals expected imminently, with over 100 holes planned
• Focus on expanding high-grade zones and in-fill drilling to enhance resource confidence
• Project advancing towards development with strong geological team performance

Exploration Success at Tallebung

Sky Metals Limited (ASX – SKY) has delivered encouraging assay results from its ongoing exploration at the Tallebung Tin Project in New South Wales. The latest batch of Reverse Circulation (RC) drilling has uncovered multiple new zones of shallow, high-grade tin and silver mineralisation, reinforcing the project's potential as a significant source of these critical metals.

Among the standout results, drill hole TBRC253 intersected 5 metres at 1.63% tin starting from just 6 metres below surface, including a remarkable 1 metre at 7.44% tin and 13.9 grams per tonne (g/t) silver. Other holes, such as TBRC254 and TBRC255, confirmed stacked tin-silver zones with silver grades exceeding 200 g/t in some intervals, highlighting the polymetallic nature of the deposit.

Upgraded Assays Boost Confidence

Significantly, a re-assay of drill hole TBRC171 upgraded the silver grade by more than 5%, now reporting 3 metres at 686.3 g/t silver and 0.96% tin from 24 metres depth. This re-assay employed a more appropriate method for high-grade silver mineralisation, confirming the presence of exceptionally rich silver zones on the deposit's south-eastern margin.

These upgraded results not only validate previous findings but also open new high-priority targets for follow-up drilling, underscoring the evolving scale and quality of the Tallebung system.

Imminent Drilling Program to Accelerate Growth

Sky Metals is preparing to commence a substantial new drilling campaign, with approvals expected within the coming week. The program plans to drill over 100 holes, combining both diamond and RC drilling techniques. The initial focus will be on extending the upgraded high-grade silver zone identified in TBRC171 and infilling higher-grade tin zones to improve resource confidence.

Diamond drilling will also provide critical geotechnical data to support future mine design and development studies, while RC drilling will efficiently target shallow, high-grade zones for rapid resource expansion.

Strategic Positioning for Development

Managing Director and CEO Oliver Davies highlighted the significance of these results, stating that the findings demonstrate the strength of the geological team and the rapidly growing scale of the Tallebung deposit. The combination of shallow, high-grade mineralisation and the project's location in a historically productive tin field positions Sky Metals well to advance towards development.

The Tallebung project benefits from its near-surface mineralisation, which is amenable to low-cost open-pit mining and advanced ore sorting technologies, potentially delivering cost advantages in tin concentrate production.

As the company moves into this new phase of exploration and resource growth, investors and industry watchers will be keenly observing the outcomes of the upcoming drilling program and subsequent resource updates.

Bottom Line?

Sky Metals is poised to unlock further value at Tallebung with a major drilling push set to redefine the project's scale and grade.

Questions in the middle?

• How will the expanded drilling results impact the upcoming resource estimate and project valuation?
• What are the timelines and capital requirements for advancing Tallebung towards production?
• Could the upgraded high-grade silver zones lead to a shift in project development priorities?