Sky Metals Limited (ASX: SKY) has commenced drilling at the Hume Target within the company’s Cullarin Project near Goulburn in New South Wales.
The Cullarin drilling campaign is part of a 1500m diamond core drill programme to follow up the exceptional result of 93m @ 4.24g/t Au in hole HUD002 in February 2020.
SKY CEO Mark Arundell said the drilling programme remains subject to advice on any restrictions on normal business activities associated with COVID-19 imposed by the Australian and/or NSW government. SKY and its contractors have modified their work practices in order to manage and minimise risk associated with COVID-19.
Meanwhile, Sky has notified Heron Resources that it has now met the Option Fee Expenditure of the Farm-In and Joint Venture Agreement reached in October 2019.
Mr Arundell said Sky has expended in excess of A$400,000 across the Cullarin and Kangiara Projects in NSW within the 12 month Option period.
Furthermore, Sky has notified Heron that it has elected to proceed to earn an undivided 80% equity interest in the Tenements pursuant to the Agreement by the expenditure of a further $1.6 million within three years.
“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% of the Cullarin and Kangiara Projects,” Mr Arundell said.
“Executing Sky’s forward exploration programmes, including the drilling programme to follow up the outstanding gold results from drillhole HUD002 from the Hume Target, will enable SKY to rapidly move to 80% ownership of the Projects. Also, over 1,500 samples of historic drillcore and soils are currently being assayed allowing SKY, at low cost, to understand and evaluate the potential of the Hume Target.”