Sky Metals Uncovers New High-Grade Tin Zones and Boosts Ore Quality 13x

Tallebung Drilling Expands High-Grade Zones

Sky Metals Limited has delivered a compelling update on its September 2025 quarter activities, highlighting a major expansion of its Tallebung Tin Project in New South Wales. A large-scale Reverse Circulation drilling campaign, extended from an initial 70 to 143 holes, uncovered multiple new zones of high-grade tin, silver, and tungsten mineralisation. Notable assay results include intervals such as 3 metres at 686.3 grams per tonne silver with nearly 1% tin, and 5 metres grading 1.63% tin, underscoring the deposit’s growing scale and quality.

These discoveries not only extend the known resource footprint but also reveal polymetallic potential, particularly with tungsten and silver by-products that could enhance project economics. The drilling program’s success has paved the way for a new phase of over 100 planned holes, combining diamond and RC drilling to further delineate and upgrade the resource.

Ore Sorting Breakthrough Promises Cost Efficiency

Complementing the drilling achievements, Sky Metals reported exceptional results from bulk sample ore sorting tests. Using advanced X-ray technology, the company upgraded tin content from a modest 0.17% to an impressive 2.32% in the first stage, representing a 13-fold increase with nearly 95% tin recovery. Further processing stages pushed grades even higher, demonstrating the robustness and scalability of the metallurgical flowsheet.

This ore sorting success is a critical step toward lowering capital and operating costs, as it significantly reduces the volume of material requiring downstream processing. The approach also offers environmental benefits by cutting water and energy consumption, aligning with modern sustainable mining practices.

Doradilla Project Advances with Metallurgical Success

At the Doradilla Tin Project, also in NSW, Sky Metals achieved a significant metallurgical breakthrough by developing a processing flowsheet that produces a saleable tin concentrate with approximately 78% tin recovery. This milestone confirms Doradilla’s potential as a viable development project alongside Tallebung, broadening the company’s tin portfolio.

An initial Exploration Target at Doradilla estimates 10 to 15 million tonnes grading between 0.32% and 0.42% tin, though further drilling is needed to convert this into a formal resource. The company is also investigating the recovery of rare earth elements and other by-products, which could add further value.

Capital Raising and Corporate Outlook

To underpin these exploration and development activities, Sky Metals successfully completed a $6.1 million capital raising during the quarter, with a substantial portion committed by directors and management. The funds will support the upcoming drilling campaigns, metallurgical testwork, and mining studies essential for advancing Tallebung toward production.

With a cash balance exceeding $6 million as of 30 September 2025, the company is well-positioned to execute its growth strategy. Environmental studies and mining approvals are progressing, with groundwork such as biodiversity assessments and weather monitoring underway to facilitate timely permitting.

Broader Exploration Portfolio Progress

Beyond its flagship tin projects, Sky Metals continues to explore other assets including Narriah, Cullarin, Iron Duke, Caledonian, Galwadgere, and Kangiara in NSW. These projects show promising signs of polymetallic mineralisation, with ongoing geophysical surveys, drilling, and sampling programs aimed at unlocking additional value.

Sky Metals’ integrated approach combining resource expansion, metallurgical innovation, and strategic capital deployment positions it as a notable player in the critical tin supply chain, essential for emerging technologies such as semiconductors and renewable energy.