Sky Metals Pushes Forward with Tallebung Tin Project Development
SKY METALS LIMITED (SKY) Share Update January 2025 Tuesday 14th
Sky Metals Advances Tallebung Tin Project with Promising Trenching and Drilling Results
Sky Metals Limited (ASX: SKY) is making significant strides in advancing its Tallebung Tin Project in New South Wales, with recent trenching and drilling activities revealing promising results.
Instant Summary:
- Six trenches completed with visual tin mineralization at surface.
- Channel sampling results expected within two weeks.
- Metallurgical testwork shows 44x tin upgrade and 83% recovery.
- Diamond drilling program with five holes to commence.
- Large-scale RC drilling planned to expand resource estimation.
Trenching and Sampling Success
Sky Metals has completed six trenches across the Tallebung Tin Project, each intersecting visual tin mineralization at the surface. This achievement underscores the shallow nature of the tin deposits and supports the company's geological modeling efforts. Channel samples from these trenches have been collected and are currently being analyzed, with results anticipated in the next two weeks.
Upon receiving these results, Sky Metals plans to select 3-4 zones for bulk sampling, which will involve extracting between 50-80 tonnes of mineralization. This bulk sampling will allow the company to optimize its metallurgical flowsheet, produce tin concentrate for marketing, and validate its Mineral Resource Estimate (MRE) model.
Metallurgical Testwork and Ore Sorting
Recent metallurgical testwork has yielded exceptional results, with a 0.10% tin sample being upgraded to 4.42% tin, achieving an 83% recovery rate. This represents a 98.1% reduction in mass after sorting. The Heavy Liquid Separation (HLS) testwork further demonstrated that a 1.50% tin product could be concentrated to recover 75% of the tin from the waste. These findings highlight the project's potential for low-cost pre-concentration and significant reductions in capital and operational expenditures.
Drilling Programs to Enhance Geological Understanding
Sky Metals is set to commence a diamond drilling program this week, consisting of five holes totaling approximately 1,000 meters. This program aims to enhance the geological understanding of the Tallebung deposit, which is crucial for upgrading the MRE and supporting ongoing mining and development studies. Following this, a large-scale RC drilling program is planned to further expand the resource estimation in terms of size, confidence, and grade.
The advancements in the Tallebung Tin Project are likely to boost investor confidence in Sky Metals. The positive results from trenching and metallurgical testwork suggest a strong potential for economic tin production, which could positively impact the company's stock. Additionally, the planned drilling programs are expected to enhance the project's resource base, further supporting its development prospects.
Investor Reaction:
Analysts are likely to view the progress at Tallebung positively, given the promising trenching and metallurgical results. The anticipated channel sampling results and the commencement of diamond drilling could generate further interest from investors looking for exposure to tin projects with strong development potential.
Conclusion:
Investors should keep a close watch on the upcoming assay results and the progress of the drilling programs. Sky Metals' strategic focus on advancing the Tallebung Tin Project positions it well to capitalize on the growing demand for tin in technology applications. Staying informed about the company's developments will be crucial for making informed investment decisions.