The Board of Sky Metals Limited provided an update on exploration activities at the 3KEL Tin-Polymetallic Target at the Doradilla Tin-Polymetallic project and the Tallebung Project, both in NSW. SKY completed three diamond drill holes at 3KEL in March this year. Assays have now been received for two of these holes, 3KDD016 and 3KDD018 with results for 3KDD017 still pending and expected in the next fortnight.

3KDD016 was the first of these holes and was drilled for depth extensions to the high-grade tin mineralisation under 3KDD012. 3KDD016 intercepted strongly altered garnet skarn and calc-silicates with minor psammite interbeds, the calc-silicate and garnet skarn represents the host lithology for the tin at 3KEL and demonstrates that mineralisation at 3KEL continues at depth below 3KRC012 and 3KDD016 and along strike. Zinc mineralisation is common in these zoned large-scale tin systems and is associated with `high levels' above the tin mineralisation and mineralising granite.

3KDD013 likely intercepted this higher level, indicated by the very pale yellow/white sphalerite (zinc sulphide) which hosted the zinc mineralisation. 3KDD017 has also intercepted sphalerite, however, this sphalerite is a darker yellow-red and indicates that it is moving towards the deeper tin zone of the 3KEL system ­ Assays are pending. A wide diameter diamond hole, 3KDD018, was drilled to intercept the high-grade tin mineralisation in 3KRCD007 on a sub-parallel angle to produce samples for metallurgical test work.

The high-grade tin results achieved in 3KDD018 show the hole successfully intercepted the 3KEL mineralisation and, therefore, the sample recovered will be suitable to provide the sample needed for the ongoing metallurgical test work.