- Sky Metals (SKY) has provided updates regarding the purchase of the Cullarin and Kangiara gold projects in NSW
- Sky has met the $400,000 spending fee which is half of the process to obtain an 80 per cent ownership of the projects from Heron Resources
- The company must now spend $1.6 million to gain the full 80 per cent
- Sky has ended the day 5.26 per cent in the green with shares trading for 20 cents each
Sky Metals (SKY) has made the call to spend $1.6 million to earn an 80 per cent interest in the Cullarin and Kangiara gold projects in NSW.
Sky is earning its interest in the projects from Heron Resources (HRR). Today, Sky told shareholders it has met the initial $400,000 option fee spending target that was outlined in the joint venture (JV) agreement.
By spending $400,000 over a 12-month period, Sky is now one step closer to owning 80 per cent of three Heron tenements — one from Cullarin and two from Kangiara.
To gain the 80 per cent ownership, Sky must now spend the $1.6 million on project operations over the next three years.
The Cullarin Gold Project, which holds one tenement in the JV agreement, is located 25 kilometres west of Goulburn in central NSW.
The project is made up of volcano-sedimentary rocks and is considered prospective for gold-copper-zinc mineralisation.
The Kangiara Gold Project, which holds the other two tenements, is 30 kilometres northwest of Yass in central NSW.
Similar to the Cullarin Project, Sky said Kangiara is also made-up of volcano-sedimentary rocks and is considered prospective for gold-copper-zinc mineralisation.
In the early 1900s, Kangiara produced approximately 40,000 tonnes at 16 per cent lead, three per cent copper, five per cent zine, 280 grams per tonne of silver, and two grams per tonne gold from 120 metres.
An indicated and inferred mineral resource for the project was calculated in 2010 by the previous owners, however, Sky has not yet confirmed whether this estimate is correct.
Instead, the project has an exploration target of approximately two to three million tonnes at 1.3 per cent zine, one per cent lead, 0.18 per cent copper, 24 grams per tonne of silver, and 0.5 grams per tonne of gold.
Sky has also begun drilling at the Hume Target which is located within the Cullarin Project.
This drilling program is to follow up on the exceptional result of 93 metres at 4.24 grams per tonne of gold from early February 2020.
However, this program remains subject to any restrictions that may be put in place by the Australian or NSW State Government’s surrounding COVID-19.
“Less than six months after signing the Farm-in and JV Agreement with Heron, Sky has reached its first milestone and will now proceed to earn 80 per cent of the Cullarin and Kangiara Projects,” Sky CEO Mark Arundell said.
Sky has ended the day 5.26 per cent in the green with shares trading for 20 cents each in a $55.56 million market cap.