Sky Metals Launches Resource Expansion Program at Tallebung Amidst Rising Tin Prices

Sky Metals Ltd (ASX: SKY) has launched a resource expansion drilling program at the Tallebung Tin Project in New South Wales.

The deposit remains open in all directions and has continued to expand.

Tin prices have rallied to near two-year highs, which is underpinned by growing supply uncertainty.

The commodity is a key technology metal, with a potential supply crunch looming.

This is driven by 30 plus years of under investment and at the same time growing demand for tin primarily within electric vehicles, renewable energy and electronic goods.

As an example, there is currently less than 2 to 3 days of tin supply stock on the London Metal Exchange.

There is also a pending Indonesia export ban, which delivers a fifth of global tin, and Myanmar suspended tin mining which provided 10% of world supply.

Drill program

The expansive new exploration will encompass 23 reverse circulation holes and two to three diamond holes, covering in total around 5,000 metres.

The program will target a significant increase to the size and confidence of the current resource of 15.6 million tonnes at 0.15% tin.

This will move the resource towards the estimated exploration target of 23 to 32 million tonnes at 0.14% to 0.17% tin.

The target is only limited by the drilling completed to date.

Tallebung potential

Oliver Davies, chief executive officer, commented:

“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.”

Rare opportunity

The company continues to consolidate Tallebung as a rare opportunity to establish low-cost tin production.

This is through increasing the deposit scale and ideal mineralogy which provides an average of a 5x increase in grade with TOMRA Ore Sorting across the entire deposit.

Therefore, rather than a resource grade of 0.15% tin, this would be over 0.70% tin.

Tallebung encompasses the historic Tallebung Tin Mining Field at the northern extent of the Wagga Tin Belt within the central Lachlan Orogen.

Adding to the potential, there is a shallow, at surface high-grade tin zone identified for fast payback at commencement of mining.

 

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