Nov 19, 2024

Stellar Resources Hits 20.9m @ 1.97% Sn at Heemskirk Tin Project, Tasmania

Introduction:

Stellar Resources (ASX: SRZ) (Market Cap: $33M | Last Close: $0.016 | Cash: $11.5M ) has reported high-grade tin intercepts from its 2024 drill program at the Heemskirk Tin Project in Western Tasmania, highlighted by 20.9m at 1.97% Sn from 431.0m.

Drill Results:

20.9m @ 1.97% Sn from 431.0m (including 14.8m @ 2.40% Sn from 437.1m) (ZS166)
4.0m @ 1.67% Sn from 510m (ZS166)
6.0m @ 1.63% Sn from 522m (ZS166)
5.0m @ 1.70% Sn from 533m (including 1.0m @ 7.34% Sn from 533m) (ZS166)‍
4.0m @ 0.52% Sn from 310.0m (ZQ165)

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Project Overview:

The Heemskirk Tin Project is located in Zeehan, Western Tasmania. It comprises multiple deposits including Severn and Queen Hill. The project area benefits from existing infrastructure in an established mining region.

Heemskirk is ranked as the highest-grade undeveloped tin resource in Australia and third globally. The current Mineral Resource Estimate stands at 7.48Mt at 1.04% Sn for 77,870 tonnes of contained tin.

Program Details:

The current drilling program comprises 24 holes for approximately 9,500m, focused on infill and extensional drilling. To date, 8 holes totaling 3,600m have been completed. The program aims to upgrade Inferred resources to the Indicated category and test for extensions beyond the 2023 Mineral Resource Estimate. Geophysical crews are mobilizing to conduct electromagnetic surveys as part of the resource expansion efforts.

Understanding These Results:

The intercept in hole ZS166 at Severn represents the best result on record for the deposit on a grade-thickness basis. The high-grade zones are within areas previously classified as Inferred resources and have returned significantly higher grades and thicknesses than predicted by the current resource model.

Mineralisation remains open down-plunge, with the nearest hole 145m further down-dip. The results demonstrate potential to expand the high-grade resource base and improve overall project economics.

Management Commentary:

Simon Taylor, Stellar's Managing Director:

“The record intersection in the first results from our prefeasibility drilling program is outstanding and emphasises that Heemskirk is a large tin system with all the hallmarks for development into a world class, long-life tin operation. Our recent base case Scoping study confirms a 10-year mine life utilising only the Indicated resources from our MRE, which is likely to grow substantially when we update our resource in 2025.”

“We currently have 3 drill rigs onsite aiming to upgrade the substantial Inferred material to the Indicated category and to explore for extensions to the system with a down hole electromagnetic survey commencing next month. In tandem, our prefeasibility and baseline environmental studies are progressing well. We look forward to providing further updates on prefeasibility activities, including drilling results, ore sorting and metallurgical results, as they come to hand.”

Next Steps & Catalysts:

Drilling is ongoing with three rigs currently operating on site. The company plans to complete the 24-hole program and incorporate results into an updated Mineral Resource Estimate anticipated in 2025.

A prefeasibility study is underway, including metallurgical testwork and further trials of ore sorting. Baseline environmental studies are also progressing. The company expects to provide updates on drilling results, ore sorting outcomes, and metallurgical results as they become available.

Commodity Outlook:

Tin remains a critical metal for electronics manufacturing and emerging technologies. With Heemskirk's high-grade nature and location in the mining-friendly jurisdiction of Tasmania, the project is well-positioned to potentially supply the growing global demand for responsibly-sourced tin.

Conclusion:

The latest results from Heemskirk, particularly the record intercept at Severn, demonstrate significant potential to expand and upgrade the current resource base. With ongoing drilling and studies, Stellar Resources is advancing the project, aiming to establish Heemskirk as a notable, long-life tin operation.

Sources:

SRZ Drill Results Announcement

Additional Figures:

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Nov 7, 2024