Sky Metals (ASX:SKY) said the New South Wales Department of Planning, Housing and Infrastructure issued environmental assessment requirements for the company's Tallebung tin-silver-tungsten project, according to a Wednesday filing with the Australian bourse.

The issuance marks "a significant development milestone" for the project, which is now advancing into the environmental impact statement phase of the state government's approvals process, the company said.

Sky Metals said an updated mineral resource estimate and pre‑feasibility study are on track for release in the coming weeks.

The company's shares fell 2% in recent Wednesday trade.