Sky Metals : Quarterly Activities Report - June 2022

ASX: SKY

ASX ANNOUNCEMENT

25 July 2022

only	Quarterly activities report to 30 JUNE 2022
		HIGHLIGHTS
Tallebung TIN Project
use	 Drilling of 12 RC holes for a total of 2,213m and 1 diamond drillhole for a total of 150.2m
at the Tallebung Tin Target intercepted broad bulk tonnage tin mineralisation.
 Assays received during the quarter included:
	TBD002:	60.2m @ 0.54% tin & 40.4g/t silver from 12.8m, including;
		15m @ 1.17% tin & 150.3g/t silver from 58m
	TBRC021:	25m @ 0.14% tin from 124m, including;
		1m @ 1.57% tin from 124m

These results have continued to significantly expand the potential of Tallebung as a bulk tonnage tin resource.

• Metallurgical testwork of a simple gravity circuit has commenced - samples sent to TOMRA ore sorting for beneficiation before being sent for gravity concentration testwork aiming to produce a saleable cassiterite concentrate.

personalDoradilla TIN Project

• Assays received for the diamond drilling program completed in the March quarter at 3KEL-Doradilla - 3 holes were completed for a total of 697.8m. Results included:

For	3KDD018:	81m	@ 0.48% tin from 5m, including;
		26m	@ 1.04% tin from 45m
	3KDD016:	18m	@ 0.20% tin from 185m
	3KDD017:	5m @ 3.21% zinc from 207.7m,
		10.6m @ 0.09% tin from 228m

• A large infill and extensional RC drilling program to rapidly advance the 3KEL Target has now commenced and will proceed into the September quarter.

SKY METALS LIMITED

[phone]	2 HAWTHORN PLACE, ORANGE NSW 2800	WWW.SKYMETALS.COM.AU	ABN 46 098 952

17m @ 0.11% tin from 17m including;

5m @ 0.25% tin from 24m.

4m @ 0.34% tin from 54m.

20m @ 0.13% tin from 29m including;

4m @ 0.46% tin from 29m.

29m @ 0.13% tin from 82m, including;

3m @ 0.54% tin from 82m.

The Board of Sky Metals Limited ('SKY' or 'The Company') is pleased to provide a Quarterly Activities Report outlining SKY's advanced exploration program during the June 2022 quarter.

September 2022 Quarter - Proposed work Program

only	 Further RC drilling at the 3KEL Target, Doradilla Tin-polymetallic Project
 Evaluation of the tin mineralisation and oxide copper potential at the 3KEL Target
	RC and diamond drilling at the Tallebung Tin Project targeting further shallow bulk tonnage tin resources
	Further metallurgical work on the 3KEL Target and Tallebung Target

Tallebung project: Tin (EL 6699, SKY 100%)

Tallebung Target - RC Drilling

useIn the March quarter, SKY completed nine of eleven planned RC holes and one redrilled hole, ten holes altogether, for a total

of 1,217m, at the historic Tallebung Tin Mine. This drilling was designed to test for further up dip, shallow bulk tonnage tin mineralisation. Assays for the first four holes in the program were received in the March quarter. The assays for the final six holes were received in the June quarter with all holes successfully intercepting strong broad tin mineralisation.

Mineralisation at Tallebung is geologically interpreted to be hosted in four broad subparallel east dipping lodes named Lode

A, B, C and D from east to west respectively. TBRC015 was planned to intercept down plunge extensions to the broad tin personalmineralisation intercepted in TBRC006 and identified as being 'Lode C' (Figure 1). Due to drilling difficulties, TBRC015 was ended

prematurely before passing entirely through Lode C, however, the hole did intercept mineralisation interpreted to be associated with the subparallel and overlying Lode B. Results included:

TBRC015:

TBRC016 was targeted to test up dip extensions to the mineralisation in Lode C and infill in an area of only very wide spaced and shallow historic drilling. This hole confirmed the continuation of broad tin mineralisation in an up-dip position on Lode C, results included:

TBRC016:

TBRC017 was over 80m south of TBRC016 and above the historic hole DDH16. This was also to test up dip extensions to the Formineralisation in Lode C and infill in a region of only very wide spaced and shallow historic drilling. This hole also confirmed

the continuation of broad tin mineralisation in an up-dip position on Lode C, results included:

TBRC017:

TBRC018 was targeted to test the continuity and up dip extensions to the broad tin mineralisation in the centre of the identified mineralisation where little to no drilling has been completed within 100m of TBRC018. Drilling difficulties resulted in the hole being abandoned before reaching the planned depth, however, the hole did confirm the continuation of broad tin mineralisation through the centre of the Tallebung Tin Target, results included:

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6m @ 0.10% tin from 133m.

12m @ 0.08% tin & 0.19% tungsten from 154m including; 2m @ 0.86% tungsten from 154m and;

5m @ 0.16% tin & 0.08% tungsten from 161m.

TBRC018:

onlyDrilling difficulties resulted in TBRC019 being abandoned at only 78m due to extreme hole deviation, over 70m short of the planned end of hole at 150m. TBRC025 was then drilled from the same pad to attempt to reach the target designed for TBRC019. TBRC025 also encountered similar extreme hole deviation which resulted in the hole also being abandoned prematurely at 90m, 60m short of the planned end of hole. Both holes were targeted to test along strike and up-dip extensions to the mineralisation by infilling in a region with no historic drilling within 100m (Figure 1).

For usepersonal

Figure 1: Tallebung Target - Plan view with drill hole collars and significant intercepts. Recent results are in yellow and RC holes are

yellow (TBRC030-35) - assays are pending for these holes.

TBRC019/25 confirmed the continuation and extension of broad tin mineralisation through the centre of the Tallebung Tin Target, results included:

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60.2m @ 0.54% tin & 40.4g/t silver from 12.8m, including; 0.6m @ 7.96% tin & 0.08% tungsten from 12.8m and;

36.4m @ 0.73% tin & 65.2g/t silver from 36.6m including;

15m @ 1.17% tin, 150.3g/t silver & 0.20% copper from 58m including; 6m @ 2.28% tin, 229.1g/t silver & 0.35% copper from 64m.

4m @ 0.34% tin, 0.08% tungsten & 25g/t silver from 59m including; 1m @ 1.33% tin, 0.05% tungsten & 82g/t silver from 59m.

2m @ 0.11% tin, 0.05% tungsten & 20g/t silver from 86m.

4m @ 0.11% tin, 0.18% tungsten & 28g/t silver from 57m. 1m @ 0.39% tin, 0.35% tungsten & 94.9g/t silver from 75m.

TBRC019:

TBRC025:

onlyIn the June quarter, initial six RC drillholes, TBRC020-21 and TBRC026-29, for a total of 1,110m were completed at Tallebung to infill the large extensions to the tin mineralisation intercepted by the RC program during the previous quarter. Assays have been received for one of the six holes drilled, TBRC021, which confirms the tin mineralisation has successfully been extended. Results include:

use	TBRC021:	4m @ 0.35% tin & 0.04% tungsten from 42m, including;
	1m @ 1.23% tin & 0.07% tungsten from 42m.
	25m @ 0.14% tin from 124m including;
	8m @ 0.36% tin & 0.07% tungsten from 124m, including;
	1m @ 1.57% tin from 124m.
Another six infill and extension RC drillholes, TBRC030-35, were then completed at Tallebung to continue to expand the
personal

broad footprint of bulk tonnage mineralisation and to increase confidence in the bulk tonnage tin mineralisation intercepted in previous drilling (Figure 1).

Tallebung Target - Diamond Drilling

During the quarter a large diameter PQ diamond drillhole, TBD002, was completed at Tallebung to provide samples for further metallurgical test work. This hole was orientated perpendicular to previous drilling and subparallel to the mineralisation to intercept as much of the mineralisation as possible to provide as much sample as possible for bulk metallurgical test work (Figure 2). Assay results were received in the quarter and include:

TBD002:

ForThe shallow high-grade tin mineralisation intercepted in TBD002 demonstrates the strong potential for near surface open pit tin mineralisation at Tallebung. Two possible post mineralisation faults were observed in the hole and SKY plans to drill additional diamond drillholes with orientated core to continue to further develop the geological and structural controls on the mineralisation at Tallebung in the September quarter.

Tallebung Target - Metallurgical Testwork

In the previous quarter, a sample of the Tallebung tin mineralisation was sent to TOMRA Ore Sorting Solutions in Sydney. The sample was sorted on approximately a 25:75 product to waste ratio. Assays from this work showed an almost quadrupling of the grade with +90% recovery for both tin and tungsten (Table 1). These trial results were extremely encouraging for the

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application of ore sorting at Tallebung. Samples taken from the wide-diameter diamond hole, TBD002, have now been sorted by TOMRA during the June quarter to build on these very excellent, early trial results.

Table 1 - Tallebung Tin-Tungsten Project, Tallebung Target. Collar summary for drill holes.

only			Commodity			Sample			Weights			Feed				Sort			Sort Ratio			Recovery			Upgrade
								Grade				Grade
		Tin			Product 1	2.98		0.19%		0.70%		26:74		96%		3.74
				Waste 1	8.62		0.19%		0.01%		74:26		4%		0.05
		Tungsten			Product 1	2.98		0.02%		0.06%		26:74		90%		3.50
				Waste 1	8.62		0.02%			0.002%		74:26		10%		0.14

useThe sorted products from TOMRA will now be sent to ALS Burnie to test a conventional, simple gravity concentration circuit to produce a saleable concentrate from the tin mineralisation at Tallebung. Tin mineralisation at Tallebung is hosted as coarse cassiterite (tin-oxide) indicating favourable concentration by traditional gravity methods, most likely to be after preconcentration via ore sorting. A wide-diameter diamond hole has been planned for the June quarter to provide sample for further metallurgical testing of the Tallebung mineralisation.

personalFor

Figure 2: Tallebung Target - Cross-section of TBD002 and significant intercepts. Recent holes are in yellow.

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