Ore Sorting Breakthrough Could Slash Costs but Challenges Remain at Tallebung

Ore Sorting Breakthrough at Tallebung

Sky Metals Limited (ASX, SKY) has unveiled a major milestone in its development of the Tallebung Tin Project in central New South Wales. The company’s recent metallurgical testwork on over 75 tonnes of bulk samples using a full-scale TOMRA XRT Ore Sorter has delivered exceptional results, dramatically upgrading tin grades while slashing the volume of material requiring further processing.

The two-stage ore sorting process first lifted tin concentration from a modest 0.17% to 2.32%, representing a 13-fold increase with an impressive 94.8% recovery rate. A second sorting stage further concentrated the tin to 10.8%, a 4.6 times improvement on the first stage, while maintaining a 70% recovery. This stepwise enrichment highlights the potential for efficient pre-concentration, which could significantly reduce capital and operating expenses in future mining operations.

Implications for Project Economics and Environmental Impact

Crucially, the initial sorting stage achieved a mass reduction exceeding 93%, meaning that the bulk of waste material can be rejected early in the process. This not only reduces the volume of ore needing costly downstream treatment but also promises substantial savings in energy and water consumption, aligning with environmental sustainability goals.

Silver and tungsten, valuable by-products at Tallebung, also showed strong upgrades and recoveries, with silver grades increasing tenfold and an 80% recovery rate. These results reinforce the versatility and robustness of the ore sorting technology, even when applied to highly weathered and friable surface mineralisation, which is typically challenging to process.

Next Steps Towards Production

Following the ore sorting success, Sky Metals plans to subject the finer crushed material and waste streams to Dense Medium Separation (DMS) trials at ALS Perth. Subsequently, pilot-scale gravity processing will be conducted at ALS Burnie to produce a saleable tin concentrate. This concentrate will be pivotal for off-take marketing and engagement with downstream partners, advancing Sky Metals’ strategy for near-term tin production.

Managing Director Oliver Davies emphasized the significance of these results, noting that the bulk sampling program validates and improves upon previous testwork, confirming the scalability and reliability of their ore sorting approach. With further drilling results imminent, the company is well positioned to accelerate the Tallebung Project towards development.

Strategic Positioning in the Tin Market

Tallebung’s geology, characterized by large, discrete cassiterite grains in shallow veins, is ideally suited to ore sorting technology. This geological advantage, combined with the demonstrated metallurgical performance, positions Sky Metals to potentially deliver low-cost, secure tin supply. Given tin’s critical role in electronics, semiconductors, and solar technologies, these advancements could have broader implications for supply chain security in these sectors.