Sky Metals Accelerates High-Grade Tin-Silver Drilling at Tallebung with Second Rig

Accelerating Exploration at Tallebung

Sky Metals Limited (ASX – SKY) is ramping up its exploration efforts at the Tallebung Tin Project in central-western New South Wales by mobilising a second drill rig. This move aims to accelerate a large-scale drilling program comprising over 100 planned holes, designed to expand and better define the project's high-grade tin and silver mineralisation.

The Tallebung project has already delivered impressive results, notably a standout intercept of 3 metres grading 686.3 grams per tonne silver and 0.96% tin from 24 metres depth. This intercept, from drill hole TBRC171 on the deposit's south-eastern margin, highlights the potential for significant resource growth in shallow, high-grade zones.

Strategic Drilling and Resource Growth

The current drilling campaign is focused on in-fill drilling to increase confidence in existing resources and testing extensions of these high-grade zones. The addition of a second rig will not only speed up the pace of drilling but also enable diamond drilling to collect critical structural and geotechnical data. This data is essential for designing an efficient open-pit mine and advancing feasibility studies.

Sky Metals expects to receive the first assay results in December, with progressive updates as more data comes in. These results will feed into an updated Mineral Resource Estimate (MRE) scheduled for completion in the first quarter of 2026. The updated MRE will incorporate data from over 300 drill holes, a significant increase from the 115 holes used in the current resource estimate, potentially unlocking greater resource size and confidence.

Financial Strength and Project Advancement

Supporting this accelerated drilling program, Sky Metals has secured $592,000 in additional funding from its directors and management following recent shareholder approval. This injection, combined with a prior $6.1 million capital raise, leaves the company well-funded to advance not only drilling but also bulk metallurgical testwork and environmental studies concurrently. These parallel efforts are critical to ensuring the project remains on track for future mining approvals and development.

Managing Director Oliver Davies emphasised the importance of the second rig mobilisation, stating it represents a key step in unlocking the full potential of Tallebung’s tin-silver-tungsten system. With strong board backing and a strengthened financial position, Sky Metals is poised to deliver an updated resource and progress mine development studies early next year.

Outlook for Tallebung

The Tallebung Tin Project stands out as a near-term, open-pit development opportunity with technology-enabled advantages. Its shallow, high-grade tin veins and favourable mineralogy lend themselves to low-cost production methods, including advanced ore sorting and gravity separation. As global demand for tin grows; driven by its critical role in semiconductors, electronics, and solar technologies; Tallebung’s potential to provide a secure, high-quality tin supply is increasingly significant.

With drilling intensifying and key milestones on the horizon, Sky Metals is setting the stage for a transformative phase in the project’s development, one that could materially enhance its resource base and underpin future mining operations.