Sky Metals Unveils High-Grade Tin Intercepts at Tallebung Project
SKY METALS LIMITED (SKY) Share Update September 2024 Tuesday 17th
Sky Metals Reports Promising High-Grade Tin Intercepts at Tallebung Project
Sky Metals Limited (ASX: SKY) has released an encouraging update on its Tallebung Tin Project in New South Wales, revealing significant high-grade tin intercepts from its latest drilling program.
Instant Summary:
- Shallow, higher-grade tin intersections discovered in the southern extension drilling program.
- Key intercepts include 7m @ 0.58% tin and 6m @ 0.59% tin with 28.8g/t silver.
- Continuity of mineralisation extends beyond the current Mineral Resource Estimate (MRE).
- Potential for early mining to facilitate rapid payback of Capex.
- Assays received for 10 out of 13 holes, with remaining results expected soon.
Drilling Program and Results
Sky Metals Limited has reported promising results from its southern extension Reverse Circulation (RC) drilling program at the Tallebung Tin Project. The drilling program aimed to expand the high-grade tin mineralisation discovered in previous drilling efforts.
Among the notable results, hole TBRC105 returned 7 meters at 0.58% tin from 62 meters, including 2 meters at 1.82% tin. Another significant result came from hole TBRC110, which intersected 6 meters at 0.59% tin and 28.8 grams per tonne (g/t) silver from 50 meters, including 3 meters at 1.02% tin and 22.3 g/t silver from 53 meters.
Continuity and Economic Potential
The results demonstrate strong continuity of mineralisation surrounding the high-grade extension discovered in a recent 150-meter step-out hole to the south. This continuity is expected to enhance the project's economics significantly, as the shallow, higher-grade tin mineralisation is ideally suited for early mining operations. This could generate early cash flow and enable rapid payback of project capital expenditures (Capex).
Future Prospects
Sky Metals has received assay results for 10 out of the 13 holes drilled in this program, with results for the remaining three holes anticipated in the coming weeks. The company plans to focus on further expanding the shallow, higher-grade tin mineralisation and building a comprehensive geological understanding of the newly discovered area.
The discovery of high-grade tin mineralisation at shallow depths is a positive development for Sky Metals. The potential for early mining operations to generate cash flow and quickly pay back Capex is likely to attract investor interest. The strong tin prices, combined with the project's promising results, could lead to a positive impact on Sky Metals' stock price.
Investor Reaction:
Analysts are expected to react positively to the news, given the high-grade nature of the intercepts and the potential for early cash flow generation. The continuity of mineralisation beyond the current MRE is also likely to be seen as a significant upside for the project.
Conclusion:
Investors should keep an eye on Sky Metals' upcoming assay results and further developments at the Tallebung Tin Project. The company's strategic focus on expanding high-grade mineralisation and early mining potential could offer substantial returns for shareholders.