Sky Metals (ASX: SKY) has announced significant new mineral extensions at its Tallebung Tin Project in NSW, expanding the footprint to the southeast and confirming prospective structures, while also detailing ongoing development readiness activities.
Prospective quartz-vein structures have been confirmed beneath a soil anomaly, indicating potential repetitions of Tallebung mineralisation in the area.
Adding to the excitement, cassiterite-bearing rock chips have been identified from newly discovered historical workings via LiDAR, supporting new mineralised zones for imminent drill testing.
Resource Update and Development Focus
An updated Mineral Resource Estimate (MRE) is planned for H1 2026, which will incorporate data from over 400 drill holes.
This is a substantial increase from the 115 holes included in the prior MRE.
Two RC rigs are currently on site, actively engaged in in-fill and extension drilling, as well as supporting broader development-readiness activities.
Mine planning and metallurgical modelling are well underway as part of the feasibility study preparation, moving the project closer to potential production.
Doradilla Potential Grows
Separately, high-grade tin-polymetallic rock-chip results have expanded the Doradilla mineralised strike to over 10 km, signalling a significant growth in its potential.
Previous metallurgical testwork at Doradilla has demonstrated approximately 78% tin recovery into a saleable concentrate, highlighting its economic viability.
Doradilla is now positioned as a significant potential second tin development opportunity for Sky Metals within its portfolio.
Annual Report Highlights Progress
The 2025 Annual Report detailed consistent progress at Tallebung, including successful ore sorting tests and ongoing metallurgical work.
Prior tests yielded a dramatic tin grade uplift of 4.6x to 6.6x, with over 98% tin recovery.
Funding activities, including capital raises in 2024/25 and post-year-end conversions, have provided the necessary capital for continued project advancement.
Sky Metals has outlined near-term development plans focused on progressing Tallebung towards tin production, addressing the growing global demand for the metal.
Outlook for Sky Metals
Sky Metals is actively expanding Tallebung with promising new extensions and is advancing development studies toward an H1 2026 MRE.
The company's portfolio also shows growing potential at Doradilla, supported by positive metallurgical results and ongoing exploration.
Continued drilling and successful resource definition are key to unlocking future value.
