Sky Metals (ASX:SKY) says the return of broad, higher grade intersections at the Tallebung Tin Project in New South Wales highlights its growth potential.
Under the historic southern open pit at Tallebung, the final assay results include 29m @ 0.50% tin and 33.8 grams per tonne (g/t) silver, including 7m @ 1.23% tin and 106g/t silver; and 11m @ 0.43% tin and 49.7g/t silver, including 6m @ 0.71% tin and 56.6g/t silver.
Sky Metals, which has a market capitalisation of $27.11 million, says the results show continuity of another higher grade zone within the Tallebung deposit. This is in addition to the previously discovered zones, including the southern extension zone.
Managing Director Oliver Davies says these intersections once again show the potential for the development of these areas as the company continues to infill and expand the existing tin resources at Tallebung.
“These results are particularly significant given that a tin grade of 0.50% is equivalent to over 1.5% copper, highlighting the value in these intercepts — that is before beneficiation via TOMRA ore sorting, which has been demonstrated to effectively multiply the tin grade across the entire deposit,” Davies says.
“These results, combined with the previously announced higher grade zone on the southern margin of the known deposit footprint, are beginning to show exceptional potential for these zones to enable fast payback of Capex and low Opex for any potential future mining operations at Tallebung.”
Sky Metals adds the latest results will improve the geological models for the project, with the aim of increasing the size, grade, and confidence of the current resource estimate in preparation for releasing potential mining studies.
With all of the results, the company’s geologist will use the drilling data, along with the additional tin mineralisation discovered and surface and mine mapping, to further develop the improving geological models to increase the resource estimate.
Tallebung’s current resource estimate contains 15.6 million tonnes @ 0.15% tin for 23,300 tonnes of contained tin.
Once the geological modelling and resource estimate is completed, Sky Metals will be able to determine the next steps towards releasing a Scoping Study to evaluate the potential economics of a mining operation at the project, as well as what additional work is required to achieve this.
Sky Metals is an explorer and developer of high-value mineral resources in Australia. The company’s project portfolio offers exposure to the tin, gold, and copper markets in the mining jurisdiction of New South Wales.
Write to Aaliyah Rogan at Mining.com.au
Images: Sky Metals
