Cullarin – EL7954 (Joint Venture 80% SKY)

The Cullarin Project is located 25km west of Goulburn in the Southern Tablelands of New South Wales. The area comprises volcanosedimentary rocks of the Silurian Campbells Group and is considered prospective for a range of gold and base metal mineralisation types.

SKY recognises immediate exploration upside with a focus on faulted extensions to zones of known mineralisation and ranking of targets using exploration criteria developed during the discover of other gold and base metal deposit in the Lachlan Orogen.

Drilling by SKY at the Hume Prospect has identified a high-grade gold zone associated with a north-west trending structure. Results include:

• HUD002 – 93m @ 4.24g/t Au from 56m.

Next Steps

Diamond drilling completed at the Hume Target in 2021 highlighted the potential of the high-grade, gold-lead-zinc-copper mineralisation at depth at Hume. HUD031 intercepted intervals of massive sulphides and strong base metal mineralisation, extending the known mineralisation by over 80m down plunge, deeper than any previous drilling at Hume. Assays received from HUD031 show broad intervals of base metal mineralisation at depth (Figures 8 and 9). Results included:

SKY is encouraged by these thicker intervals of mineralisation at the Hume Target and the high content of conductive sulphides intercepted in this mineralisation indicate it may be detected effectively by a downhole electromagnetic (DHEM) survey. This quarter, SKY drilled a follow-up hole to these promising results by re-entering HUD030 and drilling deeper to intercept the Hume Structure approximately 100m below HUD031. This tested extensions of the high-grade mineralisation in HUD031 and for any other potential mineralisation by using the hole as a platform for a DHEM survey.

HUD030 was drilled to 303.6m in 2021 to test for extensions to the strong base metal mineralisation intercepted in HUD005 (6m @ 1.28% Cu & 12.44% Pb+Zn). This hole was left open and, early this quarter, SKY re-entered the hole and drilled on to 702.4m to intercept the Hume Structure at depth (Figures 8 and 9). The extension of HUD030 intercepted multiple zones of strong base metal mineralisation and intense sericite-silica-pyrite alteration in strongly foliated rhyolitic volcaniclastics characteristic of the Hume Target.

Gold mineralisation at Hume is often associated with base metal mineralisation. Two broad zones of strong base metal mineralisation were noted in HUD030. SKY eagerly anticipates the results of this drilling.

Robust soil targets have also been defined within the wider Cullarin tenement including Hume North, Hume West, Murrays (previously the Breadalbane Iron Mine) and the Gurrundah line of historic mine workings in the north of the tenement.