Sky Metals Hits More High Grade Tin Beyond Its Resource Boundary as PFS Nears
Sky Metals confirms high-grade tin-tungsten-silver mineralisation extends beyond updated resource boundary
Sky Metals has reported further shallow, wide, high-grade tin-tungsten-silver intercepts from drilling completed after the recent Mineral Resource Estimate (MRE) cut-off at its 100%-owned Tallebung Project in New South Wales. All results fall outside the recently upgraded MRE, demonstrating the deposit remains open for growth.
The latest intercepts include 29m @ 0.31% tin and 0.04% tungsten from 27m in TBRC471, including 2m @ 1.62% tin, 0.08% tungsten and 47.8g/t silver from 27m. TBRC468 returned 1m @ 4.32% tungsten and 0.08% tin from 66m, and 3m @ 1.16% tin, 0.15% tungsten and 10.6g/t silver from 75m. TBRC472 intersected 26m @ 0.27% tin, 0.07% tungsten and 23.3g/t silver from 27m, including high-grade zones with 218g/t silver.
These intercepts were not included in the updated MRE as they were received after the Resource update cut-off date, indicating the new MRE may only represent a portion of the broader mineralised system. The Pre-Feasibility Study (PFS) remains on track for completion later this month, representing a major milestone in advancing Tallebung toward development. Further drilling is scheduled to commence in coming weeks, targeting additional resource growth and potential mine life extensions.
For investors, these results provide tangible evidence that the deposit can continue to grow beyond the current resource base, potentially enhancing project economics as the company approaches development decisions.
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Highlight drill intercepts from post-MRE drilling
The company has reported a series of high-grade intercepts from drilling completed after the MRE cut-off, demonstrating the consistency and continuity of mineralisation beyond the current resource boundary.
| Hole ID | Interval | Tin Grade | Tungsten Grade | Silver Grade |
|---|---|---|---|---|
| TBRC471 | 29m from 27m | 0.31% Sn | 0.04% W | – |
| TBRC468 | 3m from 75m | 1.16% Sn | 0.15% W | 10.6g/t Ag |
| TBRC468 | 1m from 66m | 0.08% Sn | 4.32% W | – |
| TBRC472 | 26m from 27m | 0.27% Sn | 0.07% W | 23.3g/t Ag |
| TBRC427 | 9m from 67m | 0.54% Sn | 0.11% W | 205g/t Ag |
| TBRC436 | 14m from 1m | 0.58% Sn | 0.04% W | – |
| TBRC438 | 16m from 30m | 0.27% Sn | 0.03% W | 15.4g/t Ag |
The consistency of high-grade intercepts across multiple holes outside the MRE boundary reinforces the growth pathway for the resource. Notably, TBRC468’s 4.32% tungsten intercept highlights the potential value-add from tungsten within the system.
What is a Mineral Resource Estimate and why do post-MRE results matter?
A Mineral Resource Estimate is a formal calculation of the quantity and grade of mineralisation in a deposit, based on drilling data available up to a specific cut-off date. Drilling completed after the cut-off date is not included in that MRE, but can be incorporated into future resource updates.
This matters because post-MRE results like these indicate the deposit extends beyond the current defined resource, creating potential for future upgrades that could improve project scale and economics. When a company reports intercepts outside the existing MRE, it signals that the current resource statement may not capture the full extent of mineralisation.
For investors, this means the current MRE may understate the true size of the deposit, and future updates could deliver material increases in contained metal. Resource upgrades are a key de-risking pathway for development projects, as they can improve project economics, extend mine life, and reduce per-unit capital requirements.
Tungsten emerges as a value-add within the Tallebung system
Recent drilling continues to highlight the importance of tungsten within the Tallebung system. TBRC468 returned 1m @ 4.32% tungsten from 66m, a notably high-grade intercept. TBRC472 also intersected 1m @ 0.70% tin, 0.86% tungsten and 218g/t silver from 52m.
Ongoing drilling is improving the company’s understanding of the distribution and continuity of tungsten-rich zones. This may provide further opportunities to enhance project value alongside the substantial tin endowment.
Tungsten is a critical mineral with strong demand fundamentals, particularly in aerospace, defence, and advanced manufacturing applications. Meaningful tungsten credits could improve project economics and diversify revenue streams, reducing reliance on a single commodity price.
Shallow mineralisation supports potential development flexibility
The continued delineation of near-surface mineralisation is encouraging as it may support future resource growth in areas potentially relevant to conceptual development scenarios being assessed in the PFS. Discovery of additional shallow mineralised zones has the potential to contribute further tonnes and contained metal, and may positively influence mining inventory, mine scheduling flexibility, and overall project economics.
Several of the newly reported intercepts commenced at shallow depths:
- TBRC471: Mineralisation from 27m depth
- TBRC472: Mineralisation from 27m depth
- TBRC436: Mineralisation from 1m depth (surface)
Shallow mineralisation typically means lower stripping ratios and potentially lower mining costs in an open-pit scenario, which could enhance project margins. Near-surface tonnes also offer development optionality, as they may be accessible in early-stage mining scenarios, potentially accelerating cash flow generation.
Pre-Feasibility Study on track for completion this month
The PFS remains on track for completion later in July 2026, representing a major milestone in advancing Tallebung toward development. The company is advancing Tallebung as a significant near-term Australian tin-tungsten-silver development project.
The project is advancing rapidly through the NSW mining approvals process towards construction and mining. Delivery of the PFS will provide investors with a clearer view of project economics, capital requirements, and development timeline—a key de-risking catalyst.
Further drilling to target continued resource expansion
Further drilling is scheduled to commence in coming weeks. Objectives include targeting additional resource growth and potential mine life extensions.
The company remains focused on advancing Tallebung towards development while continuing to expand and enhance the resource base. Ongoing drilling provides a pipeline of potential newsflow and resource upgrade catalysts as the company progresses toward development.
CEO commentary on growth potential
Oliver Davies, Managing Director & CEO
“These latest results provide further clear evidence that the recently updated Mineral Resource Estimate does not represent the limit of the Tallebung system, which remains open in several directions for further growth. Importantly, all of the drilling reported in this announcement sits outside the current MRE, highlighting the opportunity to continue growing both the scale and quality of the deposit as we deliver the Pre-Feasibility Study and move to the next stage of development. With the PFS nearing completion and further drilling about to commence, we are continuing to build what we believe is one of Australia’s leading near-term tin-tungsten-silver development projects.”
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Tallebung’s positioning as a near-term Australian tin development
The Tallebung Project is located in central western NSW at the site of large-scale historical tin mining, first discovered in the 1890s. The project is designed as an open-pit, technology-enabled development.
Metallurgical advantages include tin hosted as large, discrete grains of cassiterite, enabling exceptional X-ray ore sorting performance—demonstrated to upgrade the tin up to 44x—prior to gravity separation to produce a saleable tin concentrate. Tallebung is positioned to provide secure tin supply to feed demand in semiconductors, electronics, and solar PV technologies.
Key project attributes include:
- 100% ownership
- NSW location with historical mining infrastructure context
- Shallow, open-pit conceptual development
- Exceptional metallurgical characteristics demonstrated
- Advancing through NSW approvals process
Tallebung’s combination of scale, metallurgical simplicity, and development progress positions it as a potentially significant contributor to Australian critical minerals supply. The project’s advanced stage and metallurgical advantages may allow for lower processing costs compared to complex ore bodies requiring extensive beneficiation.
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