Sky Metals (ASX: SKY) has discovered further high-grade tin mineralisation by drilling outside their conceptual open pit at Tallebung, indicating the resource extends beyond the zone of known mineralisation.
The company drilled two groundwater monitoring bores as part of their mining and environmental permitting process for their Tallebung Tin Project in New South Wales. These bores were positioned 140 m west of known tin mineralisation and outside of the conceptual open pit.
One of the bores intercepted 18 m at 0.12% tin from 14 m, including 1 m at 1.27% tin and 0.03% tungsten from 24 m. These results indicate the addition of 140 m width to the 300-400 m wide mineralisation previously discovered at Tallebung.
Additionally, Sky Metals has discovered visible cassiterite hosted in quartz veins at the base of the historical open pit alluvial lead mine. Assays are pending for three samples taken here.
This news comes as the company announces the completion of a resource extension diamond drilling campaign in October. Four holes were drilled for a total of 947.8 m, each intercepting Tallebung’s characteristic coarse-grained cassiterite, with assays now received for three of these holes.
The company highlighted hole TBD005, drilled to target known lodes at depth, which intercepted 13 m at 0.48% tin from 2 m, including 1 m at 2.01% tin from 5 m and at 3.18% tin from 11 m. This hole also intercepted 7 m at 0.18% tin, 0.37% tungsten, and 11.4 g/t silver from 51 m. Tin intercepts extended to 233 m depth.
Hole TBD006 on the southern extent of the maiden MRE intercepted 2.4 m at 2.88% tin from 28.8 m, including 1 m at 7.73% tin. Hole TBD007, which targeted down dip and along strike extensions to known mineralisation, intercepted 4.1 m at 0.50% tin from 33 m, and 2.5 m at 1.35% tin from 82.5 m.
The results of the recent drilling campaign will be included in a new Mineral Resource Estimate (MRE), which aims to increase the Maiden MRE and convert the estimated exploration target of 16-21 Mt at grade ranging 0.16-0.20% tin into an additional resource. Metallurgical testwork continues to improve on the company’s current simple processing models – the company remains confident that results demonstrate the viability of a uniquely low-cost processing pathway at Tallebung.
Our view: The prospect of an expanded tin resource at the Tallebung Tin Project will be welcome at Sky Metals as the company works towards an updated MRE in 2024, and achieving a critical mass to commence mine scoping studies.