Sky Metals Ltd. (ASX: SKY) has released an updated Mineral Resource Estimate (MRE) for its Tallebung tin-tungsten-silver project in New South Wales. The new estimate outlines 32.7 million tonnes at 0.16% tin equivalent, containing 36.8 kilotonnes of tin, 1.14 million metric tonne units of tungsten trioxide, and a maiden resource of 9.94 million ounces of silver. This substantial increase in inventory establishes the project as a potential large-scale, open-pit operation, moving it closer to a production decision.

The company utilized 471 drill holes to compile the updated model, which significantly expands the known mineralised footprint. Management notes that the resource remains open in all directions, suggesting further growth potential. Recent exploration drilling has already intersected additional near-surface mineralisation outside the current resource boundaries, including intercepts such as 34 metres at 0.27% tin, 0.03% tungsten, and 57.7 g/t silver. These findings continue to support the company’s vision for a low-strip, low-capital development using conventional processing methods.

"The updated MRE has exceeded the upper end of our previous Exploration Target, establishing Tallebung as one of Australia's most significant emerging tin-tungsten-silver development projects. The contained tungsten inventory has more than doubled, while the maiden silver resource introduces a valuable additional revenue stream that we expect will make a meaningful contribution to project economics in the upcoming Pre-Feasibility Study."

— Oliver Davies, Managing Director & CEO

The timing of this resource update coincides with critical milestones in the project’s development pathway. Sky Metals is currently finalizing a Pre-Feasibility Study (PFS) for Tallebung, with completion targeted for late July 2026. This study is expected to provide deeper insight into the project's long-term economic viability.

Beyond the technical and engineering studies, the company is also progressing through the regulatory landscape. The project is being evaluated under the New South Wales State Significant Development pathway, with the required Environmental Impact Statement (EIS) currently underway. These twin processes—the technical validation provided by the imminent PFS and the formal environmental approval pipeline—are central to the company’s efforts to transition Tallebung from an exploration-stage asset into a future mining operation. The combination of an expanded resource base and active permitting reflects the company's commitment to advancing the project toward a potential development decision, supported by metallurgical testwork that indicates suitability for ore sorting and gravity concentration.

Read the full announcement: Tallebung Delivers Major Tin-Tungsten-Silver MRE Upgrade