Sky Metals Advances Tallebung toward Pre-Feasibility Study with Strong June Quarter

Sky Metals (ASX: SKY) has continued expanding and de-risking its Tallebung tin-tungsten-silver project in New South Wales, combining shallow high-grade drilling results with progress on project studies and approvals during the June quarter.

More than 500 drill holes have now been completed at Tallebung compared with 115 used in the previous mineral resource estimate (MRE).

This has substantially increased the geological information available for mine planning, metallurgical optimisation, and economic assessment.

An updated MRE released after quarter-end on 13 July has provided the foundation for a pre-feasibility study (PFS) due in late July, while drilling continues to identify mineralisation outside the current resource footprint.

Expanded Tallebung Footprint

The multi-rig program targeted extensions to several high-grade tin, silver, and tungsten zones on the margins of the deposit, alongside infill and diamond drilling required to support the updated MRE.

Standout drill hole TBRC395 intersected 23 metres at 1.14% tin and 0.03% tungsten from 19m, including 6m at 2.72% tin and 0.06% tungsten from the same depth.

Further south, a second hole returned 34m at 0.27% tin, 0.03% tungsten, and 57.7 grams per tonne silver from 39m, including 10m at 0.46% tin, 0.07% tungsten, and 166g/t silver from 59m.

Additional results defined a new shallow mineralised zone beyond the current MRE on the northeastern margin, extending the known system while mineralisation remains open along strike and at depth.

Scoping Report Submitted

Sky submitted a Scoping Report during the quarter to formally begin the NSW State Significant Development (SSD) approval process for Tallebung.

The NSW Department of Planning, Housing, and Infrastructure subsequently issued the Planning Secretary’s Environmental Assessment Requirements, moving the project into the Environmental Impact Statement (EIS) phase.

Environmental consultants and a newly appointed environmental manager are progressing baseline studies, stakeholder engagement, and the work required for an EIS submission alongside technical development activities.

Following completion of the PFS, Sky plans to advance permitting, begin more detailed feasibility studies, and assess project financing options, including potential offtake funding for future tin, tungsten, or silver products.

Wider Portfolio Work

Sky is preparing to begin drilling at the Doradilla Tin Project, where an Exploration Target covers only 2.5km of a mineralised corridor interpreted to extend for more than 10km.

The Exploration Target ranges from 10 million tonnes to 15Mt grading between 0.32% and 0.42% tin, representing a potential 32,000t to 63,000t of contained metal, although the target remains conceptual and further exploration may not produce a Mineral Resource.

Planned drilling will seek to confirm historical high-grade intersections, test extensions identified through surface sampling, and establish systematic coverage across newly prioritised zones.

At Narriah, Sky plans to combine aeromagnetic data with rock chip results that identified high-grade tin, tungsten, and silver mineralisation across more than 3km to generate follow-up drilling targets.

Sky remains open to a partner capable of advancing the Cullarin gold corridor and is planning further exploration across the Caledonian, Galwadgere, and Kangiara projects.

Divestment Strengthens Funding Position

Sky agreed to divest its non-core Iron Duke copper-gold project to Locksley Resources (ASX: LKY) through an option agreement carrying a total transaction value of $1.1m, comprising a non-refundable $100,000 fee, $500,000 on exercise, and a further $500,000 milestone payment.

The transaction allows Sky to direct capital and management attention toward Tallebung and Doradilla while retaining exposure to potential Iron Duke exploration or development success through milestone-linked consideration.

Sky finished the quarter with $17.6 million in cash to support its ongoing drilling, metallurgical test work, and development studies.

The company spent $2.865m on exploration during the quarter and recorded no mining production, or development expenditure, leaving it funded to maintain project and approvals work through the coming period.