Stellar Strikes New Tin Zone Below Existing Heemskirk Resource
Stellar Resources (ASX: SRZ) has intercepted a significant new zone of high-grade tin mineralisation at its Heemskirk Tin Project in Western Tasmania, extending the known resource boundaries and enhancing the project's growth potential.
High-Grade Discovery Bolsters Resource Expansion Potential
The company's latest drilling results at the Queen Hill deposit have revealed a substantial new tin zone 75 meters below the existing 2023 Mineral Resource Estimate. Drill hole ZQ176 intercepted an impressive 11.0m @ 1.07% Sn including a higher-grade section of 4.0m @ 1.71% Sn.
This discovery is particularly significant as it shows visible coarse cassiterite (the primary tin-bearing mineral) and aligns with a previously identified Down Hole Electromagnetic (DHEM) conductor from an earlier drill hole. The company is currently testing this DHEM target with hole ZQ180, which could potentially expand the mineralised zone further.
"It's very encouraging to see a new zone of tin mineralisation being intersected at Queen Hill. We have had a firm belief that Queen Hill and Severn are part of a larger tin system with the potential to grow as evidenced in this recent drilling," said Stellar's Managing Director Simon Taylor.
| Hole Number | From (m) | To (m) | Width (m) | Sn % (XRF) |
|---|---|---|---|---|
| ZQ176 (new zone) | 327.0 | 338.0 | 11.0 | 1.07 |
| including | 331.0 | 335.0 | 4.0 | 1.71 |
| ZQ174 | 170.5 | 178.7 | 8.2 | 1.62 |
| including | 176.3 | 178.7 | 2.4 | 2.69 |
The discovery of this new tin zone at Stellar Resources Ltd represents a significant development for the company's Heemskirk Tin Project. Finding new tin at Stellar Resources Ltd continues to validate the company's geological model and supports their strategic focus on expanding the resource base.
Understanding Cassiterite and Tin Mineralisation
Cassiterite, the primary tin ore mineral (SnOâ‚‚), is particularly valuable due to its high tin content (78.8%) and relative stability. At Heemskirk, cassiterite occurs in two principal forms: as free-standing grains that can be relatively easily recovered and as more complex mineral composites that require finer grinding.
The visible coarse cassiterite observed in the new zone is significant for investors for several reasons:
- Higher Recovery Potential: Coarser cassiterite typically allows for better recovery rates during processing
- Processing Efficiency: Less energy required for grinding compared to finely disseminated tin
- Potential Economic Benefit: Could potentially reduce processing costs and increase project economics
Stellar's metallurgical work indicates the project can achieve concentrates grading approximately 48% tin at an overall tin recovery of 73%, which is considered commercially attractive in the industry.
Advancing Toward Production Goals
Stellar is executing a comprehensive prefeasibility study (PFS) aimed at advancing Heemskirk toward becoming a significant tin producer. The company has ambitious production targets, aiming to produce 3,000 to 3,500 tonnes per annum (tpa) of payable tin over the first 6-10 years of operation.
This represents a substantial increase from the base case scoping study, which projected 1,900 tpa over a 12-year mine life.
The current drilling programme is extensive, with:
- 24 planned diamond drill holes totalling approximately 9,500 metres
- 17 holes already completed (8,290 metres)
- Three drilling rigs currently operating
The programme serves dual purposes: providing key technical data for the PFS while simultaneously expanding the resource base through exploration. Finding new tin at Stellar Resources Ltd remains a key focus of these drilling activities, with each new discovery adding potential value to the overall project.
Investment Thesis: Why Stellar Resources Matters
Stellar Resources' Heemskirk project represents one of the most advanced tin development opportunities globally, with several compelling investment attributes:
- High-Grade Resource: The project hosts a substantial resource of 7.48Mt at 1.04% Sn, containing 77.87kt of tin
- Tier-1 Jurisdiction: Located in the mining-friendly region of Western Tasmania
- Growth Potential: The latest discovery confirms the system remains open and expandable
- Global Significance: Ranks as the highest-grade undeveloped tin resource in Australia and third globally
- Strategic Metal: Tin is crucial for electronics soldering, renewable energy technologies, and the energy transition
The PFS is on track for delivery in the second half of 2025, representing a significant potential catalyst for the company's valuation.
Finding new tin at Stellar Resources Ltd is particularly important given tin's classification as a critical mineral. The metal plays an essential role in the global transition to renewable energy and the ongoing electrification of transportation systems. Investors interested in investing in mining stocks may find Stellar's ongoing exploration success compelling. High-grade tin deposits in stable jurisdictions like Tasmania are increasingly rare and valuable assets.
Why Investors Should Follow Stellar Resources
Tin remains a strategically important metal with supply constraints facing growing demand from electronics, renewable energy, and the broader energy transition. Stellar's Heemskirk project represents approximately 1% of potential global supply, positioning it as a significant player in the global commodities market.
With each new drilling result, Stellar continues to demonstrate the robust nature of the Heemskirk tin system. The discovery of a new high-grade zone below the existing resource boundary provides tangible evidence of the project's growth potential and supports the company's ambitious production targets.
For investors seeking exposure to critical minerals in stable jurisdictions, Stellar Resources presents a compelling opportunity with defined development pathways, expanding resources, and a clear timeline toward potential production. Many investors who typically focus on gold ETFs or explore uranium investment opportunities are increasingly diversifying into other critical minerals like tin. Finding new tin at Stellar Resources Ltd continues to validate the company's exploration model and enhances the overall project economics through potential resource expansion.
Similar to platinum's role in green hydrogen, tin is becoming increasingly important in the clean energy transition, giving Stellar Resources additional strategic significance in the evolving resources landscape.
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