Sky Metals Limited has completed a Pre-Feasibility Study for the Tallebung tin, tungsten and silver project in New South Wales, outlining a single 3Mtpa open-cut operation with a base case pre-tax NPV of approximately A$438 million.

The study is underpinned by an initial 7.3-year mine life, utilizing roughly 66% of the global Mineral Resource Estimate. Under base case parameters, the project yields a pre-tax internal rate of return of 69%, average annual EBITDA exceeding A$115 million, and capital payback in less than 17 months. Pre-production capital expenditure is pegged at A$138.8 million, covering A$113.44 million for the processing plant and A$26.33 million for site and mine establishment, excluding contingency. Annual production averages 2,040 tonnes of tin, 31,700 mtu of tungsten trioxide, and 315,000 ounces of silver, with an all-in sustaining cost of US$5,653 per tonne of tin produced net of co-products.

“The completion of the Tallebung PFS is a significant milestone for SKY, clearly demonstrating that Tallebung has the potential to become a simple, high-margin, low-cost Australian producer of tin, tungsten and silver. The study outlines a project with exceptional project economics, rapid capital payback, modest upfront capital requirements and strong cash generation.

Importantly, we see outstanding potential to further enhance the outcomes of the PFS, with only 66% of the current global Mineral Resource base at Tallebung currently included in the PFS mine plan. Drilling is now underway to upgrade the +11Mt of Inferred Resources not included in this study for inclusion in ongoing optimisation studies, as well as to expand the Resource beyond the existing envelope.”

— Oliver Davies, Managing Director & CEO

The mine life is currently constrained by Measured and Indicated resources, carrying a low level of geological confidence for the 34% Inferred material included in the production target. Drilling has restarted to upgrade over 11 million tonnes of Inferred resources.

Spot commodity prices exceed the base case assumptions, with spot pricing delivering a pre-tax IRR of 130%, an average annual EBITDA of over A$221 million, a pre-tax NPV of approximately A$1.0 billion, capital payback in under 9 months, and a negative AISC of US$18,935 per tonne of tin produced net of co-products.

Sky is targeting a Final Investment Decision for Tallebung in 2027, mining approval in late 2027, and first production in mid-2028.

Read the full announcement: Tallebung PFS Confirms Low-Cost, High-Margin Project