Over 100 Drill Holes Target High-Grade Tin Zones at Tallebung in 2026 Push

Major Drilling Campaign at Tallebung

Sky Metals Limited has kicked off a significant new drilling program at its flagship Tallebung Tin Project in New South Wales, signalling a decisive step forward in resource growth and project advancement. The campaign, involving over 100 planned drill holes using both Reverse Circulation and diamond drilling methods, is focused on extending high-grade tin-silver zones discovered in previous rounds and improving confidence in shallow mineralisation through in-fill drilling.

Highlighting the project's potential, drill hole TBRC171 returned an exceptional intercept of 3 metres grading 686.3 grams per tonne silver and 0.96% tin from 24 metres depth. This high-grade zone sits on the south-eastern margin of the known deposit and is a priority target for extension drilling. Other notable intercepts on the deposit margins include significant tin and silver grades, reinforcing the prospect of expanding the resource base.

Towards an Updated Resource and Mining Studies

The new drilling data will feed into an updated Mineral Resource Estimate (MRE) and mining studies scheduled for release in early 2026. This update will incorporate results from more than 300 drill holes, nearly tripling the dataset used in the current MRE. Complementary diamond drilling is also underway to collect structural and geotechnical information critical for mine design and feasibility assessments.

Alongside drilling, metallurgical testwork is progressing to optimise ore sorting and gravity processing flowsheets. These efforts aim to produce a saleable tin concentrate suitable for marketing, with bulk sample testing expected to advance in the coming quarter. Environmental studies addressing biodiversity, groundwater, and geochemical factors are also advancing to support future mining approvals.

Doradilla Project Breakthrough

Meanwhile, at the Doradilla Tin Project, Sky Metals has achieved a significant metallurgical breakthrough. Testwork on drill core samples has demonstrated approximately 78% tin recovery into a high-grade, saleable concentrate. This milestone confirms Doradilla's strong potential as a second development asset alongside Tallebung, broadening the company's tin portfolio.

The processing flowsheet developed combines gravity separation and flotation techniques, innovatively optimised to enhance tin recovery and concentrate grade. Further work is planned to refine these processes and explore the recovery of rare earth elements and other by-products, potentially adding value to the polymetallic mineralisation.

Leadership and Funding Strengthen Development

To accelerate project studies and approvals, Sky Metals appointed Scott Todd as Executive Director – Project Development. Mr Todd brings extensive mining leadership experience, including senior roles at PYBAR Mining Services and Mitsubishi Development, positioning the company well for the next phase of development.

Financially, Sky Metals remains well-funded with a cash balance of $4.7 million as of 31 December 2025. Recent capital raising efforts included a $6.1 million placement, with strong participation from directors and management, underscoring board confidence in the company's growth trajectory.

Broader Exploration Portfolio

Beyond Tallebung and Doradilla, Sky Metals continues to advance exploration across several projects in New South Wales, including Narriah, Cullarin, Iron Duke, Caledonian, Galwadgere, and Kangiara. These projects target a range of commodities such as tin, gold, copper, and base metals, reflecting a diversified approach to resource development.

Notably, the Narriah Project has identified high-grade tin, tungsten, and silver mineralisation over a strike length exceeding 3 kilometres, supported by recent rock chip sampling and geophysical surveys. Meanwhile, the Cullarin Project shows promise with historical high-grade gold intercepts and emerging soil anomalies, attracting interest for potential partnerships to accelerate exploration.