Sky Metals Limited - Quarterly Activities Report - 31 July 2024
SKY (SKY) Share Update July 2024 Tuesday 30th
Sky Metals Reports Significant Tin Mineralization at Tallebung
Sky Metals Limited (ASX: SKY) has reported significant progress in its exploration activities, particularly at the Tallebung Project, where high-grade tin mineralization has been discovered.
Instant Summary:
- Completion of the first phase of drilling at Tallebung with 29 RC holes and 5 diamond drillholes.
- Discovery of high-grade tin mineralization in the southernmost drillhole TBRC078.
- Successful expansion of the deposit footprint with new higher-grade mineralization.
- Initiation of a second phase of drilling to further explore the high-grade tin mineralization.
- Continuation of efforts towards a mining study to consolidate the economic potential at Tallebung.
Tallebung Project
The first phase of the ongoing drilling program at Tallebung was completed with 29 RC holes for a total of 5,384 meters drilled and 5 diamond drillholes for a total of 1,015.2 meters drilled. The southernmost drillhole in this program, TBRC078, intercepted broad, high-grade tin mineralization and was a 150-meter step out of the mineralization to the south along strike. Results included 11 meters at 1.02% tin, 77.9g/t silver, and 0.13% tungsten from 64 meters.
This intercept has extended tin mineralization well beyond the previous extent of drilling and is well outside of the current resource envelope. Previous ore sorting testwork has shown high-grade tin mineralization at Tallebung is also strongly amenable to TOMRA Ore Sorting upgrade, with results including TBD006 (25-35m) – 1.15% tin upgraded to 5.31% tin with +98% tin recovery.
Expansion and Future Plans
The current drilling program successfully expanded the deposit footprint with new higher-grade mineralization intercepted and a 170-meter strike extension discovered to the north of the deposit, demonstrating mineralization remains open in all directions. Results included TBRC090: 10 meters at 0.69% tin and 23.7g/t silver from 23 meters, including 2 meters at 2.68% tin and 51.4g/t silver from 28 meters.
A second phase of drilling has commenced in the current quarter to build on the exciting expansion in the south, discovered in hole TBRC078. Assays for this high-grade extension drilling are expected by early September.
Narriah Project
In addition to the Tallebung Project, Sky Metals is also focusing on the Narriah Project. An airborne geophysical magnetic survey combined with SKY’s compilation of historic data and geochemical results released last quarter will all be used to increase confidence in drill targeting to discover further tin and tungsten mineralization.
Corporate Activities
During the quarter, $994k was spent on exploration activities. No mining production and development activities were undertaken for the quarter. Additionally, $60k was paid as Non-Executive Director fees.
The discovery of high-grade tin mineralization at Tallebung is a significant development for Sky Metals. This could lead to an increase in the company's stock price as investors react positively to the expanded resource potential. The initiation of a second phase of drilling and the continuation towards a mining study further solidify the project's economic viability.
Investor Reaction:
Analysts are likely to react positively to the news, noting the potential for increased resource estimates and the economic benefits of the high-grade mineralization. However, the market will be closely watching the results of the second phase of drilling and the upcoming assays.
Conclusion:
Investors should keep an eye on the upcoming assay results and the progress of the second phase of drilling at Tallebung. Sky Metals' strategic focus on expanding its resource base and moving towards a mining study highlights the company's commitment to unlocking the economic potential of its projects.