High-Grade Tin Intercepts Expand Tallebung Resource in Early 2025 Drilling
Sky Metals has expanded the high-grade tin zone at its Tallebung project in NSW, reporting strong initial drilling results that have prompted a major increase in its exploration program.
- Shallow, high-grade tin intercepted in first three drill holes outside current resource
- Drilling program more than doubled to approximately 150 holes
- New high-grade zone extended south of existing Mineral Resource Estimate
- Ore sorting testwork shows potential for significant tin grade upgrade
- Previous metal equivalent reporting retracted to comply with JORC Code
Strong Start to 2025 Drilling Campaign
Sky Metals Ltd (ASX: SKY) has kicked off its 2025 Reverse Circulation (RC) drilling program at the Tallebung Tin Project in central New South Wales with promising results. The first three drill holes outside the current Mineral Resource Estimate (MRE) have intercepted shallow, high-grade tin mineralisation, confirming and expanding a newly discovered zone to the south of the existing resource.
Highlights include intercepts such as 6 metres at 1.01% tin, including 2 metres at 2.54% tin, and other significant intervals that reinforce the potential for resource growth. These results have energized the company to more than double the size of its drilling program, now targeting approximately 150 holes to explore extensions and infill areas.
Strategic Importance of Tallebung’s Tin
The Tallebung project is positioned as a near-term, open-pit tin development with technology-enabled advantages. Tin’s critical role in semiconductors, electronics, and solar photovoltaic technologies underpins the strategic value of securing a stable supply. Sky Metals is advancing metallurgical programs that demonstrate exceptional ore sorting capabilities, upgrading tin grades by up to 44 times before gravity separation, which supports low-cost production of saleable concentrates.
Managing Director Oliver Davies highlighted the significance of the tin price, currently maintaining a premium of 3 to 3.5 times that of copper on the London Metal Exchange. He emphasized the importance of the shallow, high-grade extensions being uncovered, which could accelerate capital payback and enhance project economics.
Regulatory Compliance and Data Updates
Following discussions with the ASX, Sky Metals retracted previous metal equivalent information from its May 20 announcement to align with the JORC Code’s reporting standards. The updated release removes metal equivalent data and includes sectional views of the new drilling results, ensuring transparency and compliance.
The company continues to provide regular updates as assay results from the expanded drilling program are received, with over 40 holes completed to date and approvals in place for the additional 80 holes. This steady flow of data is expected to refine resource estimates and support ongoing development planning.
Looking Ahead
Sky Metals is advancing bulk sample metallurgical testing alongside drilling to optimise processing flowsheets and support off-take marketing efforts. The combination of resource expansion and strong metallurgical performance positions Tallebung as a compelling project in the global tin market, particularly given the metal’s critical role in emerging technologies.
As the drilling program intensifies, investors and industry watchers will be keen to see how these early successes translate into a larger, higher-confidence resource and how Sky Metals navigates the path toward development and production.
Bottom Line?
With drilling ramping up and metallurgical work advancing, Sky Metals is poised to unlock Tallebung’s full tin potential.
Questions in the middle?
- How will the expanded drilling results impact the upcoming Mineral Resource Estimate update?
- What are the timelines and expected outcomes for the bulk sample metallurgical program?
- How might tin market dynamics influence Sky Metals’ development and off-take strategies?
