Doradilla (100% SKY)

The Doradilla Project is located approximately 45km south-east of Bourke in western New South Wales and is considered prospective for polymetallic tin, copper, silver, bismuth, indium and zinc mineralisation.

Mineralisation at Doradilla was discovered in the 1970s after regional magnetic surveys identified the 16km long strike hosted within the extensive Doradilla-Midway-3KEL skarn (‘DMK Line’) The DMK Line extends for the length of over 16km and is a 40-100m wide skarn zone of tin and polymetallic mineralisation.

Discovery & Early Exploration

Previous exploration has focused heavily on the tin content of the DMK Line, and predominately on the oxide mineralisation which overlies the primary zone mineralisation. Work on the DMK line slowed in the 1980s when the oxide zone tin was found to be metallurgically difficult, however the primary zone tin, in a mineral called Malayaite, has been established as being amenable to smelting in concentrates over 30% Sn and as such remains a potential source of tin.

Geology

Geologically, the Doradilla area lies between the Lachlan and Thompson Orogens with mineralisation associated with the recently re-assigned Triassic aged Midway Granite, now considered by the Geological Survey of New South Wales to be analogous to the major tin granites in the New England Orogen, where tin was first successfully mined in Australia.

Sky Metals Exploration

In 2019 SKY drilled 4 holes and the 3KEL Target on the north-eastern end of the 16km DMK Line. This program included the first hole to intercept the primary zone at the 3KEL Target in over 35 years, hole 3KRC002. Results included:

• 3KRC002: 6m @ 1.11% Sn & 1.48% Cu from 105m

In 2020 SKY flew a detailed magnetic survey over the DMK Line to target the DMK mineralisation more accurately and in 2021 completed a second program of RC and diamond drilling of the 3KEL Target using this magnetics data. Drilling intercepted consistent, wide and strong tin mineralisation with results including:

• 3KRCD007: 45m @ 0.42% Sn from 35m Including;
  10m @ 1.07% Sn & 0.15% Cu from 60m
• 3KRC011: 32m @ 0.42% Sn from 66m Including;
  9m @ 0.99% Sn & 0.31% Cu from 81m
• 3KRC012: 37m @ 0.31% Sn from 91m including;
  1m @ 4.23% Sn & 0.20% Cu from 121m
• 3KRC009: 14m @ 0.46% Sn from 135m
• 3KRCD010: 4m @ 1.10% Sn & 0.21% Cu from 135m

Future Work

SKY plans to continue to advance this project with further drilling and metallurgical test work with the aim of developing 3KEL and the wider Doradilla Project into a vital new source of tin.

SKY has also discovered several gossanous areas where rock chips have been collected and assays of up to 0.7% tin have been received. These gossanous areas are undrilled and demonstrate the strong potential that remains for the discovery of additional resources along the DMK-Line and additional skarn horizons within the project area.

In addition to tin, the Doradilla Project also represents a strong exploration target for copper, silver, bismuth, zinc and indium. In particular, the supergene tin- laterite deposits currently identified at 3KEL & Midway have the potential to contain economic levels of copper and zinc mineralisation based on the few holes that have been assayed for these metals. A considerable amount of previous drilling was assayed for tin only, with no systematic exploration carried out for any other metal.

Drilling by SKY and YTC Resources confirmed the tin laterite mineralisation at the 3KEL deposit is also rich in copper, zinc, indium and bismuth. Metallurgical testwork on the copper mineralisation in the oxide at the 3KEL Target show +90% recoveries of copper via acid leaching.