Sky Metals looking to elevate Tallebung tin MRE

Sky Metals (ASX:SKY) is hoping to increase the size and confidence of the current Mineral Resource Estimate (MRE) at its Tallebung Tin Project in New South Wales through a 23-hole reverse circulation drilling program. 

Drilling will include two to three diamond holes and is scheduled to begin in a couple of weeks and is expected to take about 6 weeks to complete. First assays are due to be received in the next one or two months. 

Sky Metals, which has a $19.87 million market capitalisation, says the MRE at Tallebung stands at 15.6 million tonnes @ 0.15% tin. Drilling has been planned to increase the MRE towards the estimated exploration target of about 23-32Mt. 

Sky continues to consolidate Tallebung as an opportunity to establish low-cost tin production, with increasing deposit scale and ideal mineralogy, which provides an average of a 5x increase in grade with TOMRA Ore Sorting across the entire deposit, increasing the resource grade of 0.15% to over 0.70% tin.

The resource is open in all directions. 

CEO Oliver Davies says with tin approaching prices not seen in almost two years, the program is a vital step towards developing resources to meet global demand for tin. 

“Tin demand has remained strong due to its critical role as a solder, holding all electronics together, as well as in solar cell PVs and semiconductors, among many other applications,” he says. 

“Supply shortages and uncertainties are pushing the tin price higher as the need for tin is increasing rapidly with global electrification and AI technology. Tallebung’s potential to be a low-cost, Australian tin producer represents an important move to building stable sources of tin to supply the growing demand. 

This drilling program is key to building a ‘critical mass’ for mining studies and potential future mining at Tallebung.” 

As reported by Mining.com.au, tin hit its highest point since June 2022 when it reached an intra-day peak on the London Metal Exchange (LME) of US$33,130 ($51,549) per tonne on 10 April 2024.

Since October 2022, the price has gained over 80% from a low of less than US$18,000/t to over US$32,350/t on 16 April.

As of 24 April, tin has witnessed a drop back down to US$31,836, according to Trading Economics.

Tallebung sits 70km northwest of Condobolin in central New South Wales and encompasses the historic Tallebung Tin Mining Field at the northern extent of the Wagga Tin Belt. 

Sky Metals is focused on the development and exploration of mineral resources in Australia. 

Write to Adam Drought at Mining.com.au

Images: Sky Metals
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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.