Sky Metals has expanded its Tallebung tin-tungsten-silver project with shallow high-grade drilling and an updated MRE. The PFS is due late July, with NSW SSD approval now in the EIS phase.
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Sky Metals (ASX: SKY) has expanded its Tallebung tin-tungsten-silver project in New South Wales through a June quarter drill program that delivered shallow high-grade intersections and an updated mineral resource estimate. The company now expects a pre-feasibility study (PFS) by late July.
More than 500 drill holes have been completed at Tallebung, compared with the 115 used in the previous resource estimate. That data is feeding mine planning, metallurgical optimisation, and the economic assessment underpinning the upcoming PFS.
The multi-rig program targeted extensions to high-grade tin, silver, and tungsten zones on the deposit's margins, with infill and diamond drilling supporting the updated MRE released on 13 July.
Standout intersection TBRC395 returned 23 metres at 1.14% tin and 0.03% tungsten from 19 metres depth, including 6 metres at 2.72% tin and 0.06% tungsten. A second hole to the south returned 34 metres at 0.27% tin, 0.03% tungsten, and 57.7 grams per tonne silver from 39 metres, including a 10-metre section at 0.46% tin, 0.07% tungsten, and 166 g/t silver.
Drilling also defined a new shallow mineralised zone beyond the current resource footprint on the northeastern margin. The system remains open along strike and at depth.
Sky submitted a Scoping Report during the quarter to formally begin the NSW State Significant Development (SSD) approval process. 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 and stakeholder engagement alongside technical work.
Following 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.
Separately, Sky is preparing to drill the Doradilla Tin Project, where an Exploration Target covers only 2.5 kilometres of a mineralised corridor interpreted to extend for more than 10 kilometres. The target ranges from 10 million to 15 million tonnes grading between 0.32% and 0.42% tin, representing a potential 32,000 to 63,000 tonnes of contained metal. The target remains conceptual and further exploration may not produce a Mineral Resource.
At Narriah, Sky plans to combine aeromagnetic data with rock chip results that identified high-grade tin, tungsten, and silver mineralisation across more than three kilometres to generate follow-up drill targets.
Sky remains open to a partner for the Cullarin gold corridor and is planning further exploration across the Caledonian, Galwadgere, and Kangiara projects.
The company 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 $1.1 million. The deal includes a non-refundable $100,000 fee, $500,000 on exercise, and a further $500,000 milestone payment. The divestment lets Sky direct capital and management attention toward Tallebung and Doradilla while retaining exposure to potential Iron Duke success through the milestone-linked consideration.
Sky finished the June quarter with $17.6 million in cash. It spent $2.865 million on exploration during the quarter and recorded no mining production or development expenditure.
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