Stellar Resources Hits High-Grade Tin: Validating Strategic Growth at Heemskirk
Stellar Resources (ASX: SRZ) has announced significant high-grade tin results from its first wedge hole at the Severn deposit, part of its flagship Heemskirk Tin Project in Western Tasmania. The results demonstrate the company's effective resource conversion strategy while confirming the robust nature of this world-class tin asset.
The high-grade tin find by Stellar Resources Ltd represents a critical milestone in the company's development journey. With this discovery, Stellar continues to build confidence in its flagship project while advancing toward potential production in a market experiencing supply constraints.
Impressive High-Grade Results Validate Drilling Strategy
The first wedge hole (ZS187W1B) has successfully intersected a significant 25-meter wide zone of tin mineralisation, including a high-grade core of 4m @ 1.26% Sn from 546m, which includes 2m @ 1.92% Sn from 547m and a spectacular 1m @ 2.75% Sn.
These results represent a direct validation of Stellar's infill drilling strategy, which aims to systematically convert areas within the current Inferred Resource to the higher-confidence Indicated category.
"This is a solid result from our first wedge hole and a direct validation of our infill drilling strategy. Hitting a 25-metre zone of tin with a high-grade core of 4 metres at 1.26% tin confirms that our geological model is robust and gives us great confidence as we continue the resource conversion program as part of the Prefeasibility Study," said Managing Director Simon Taylor.
Strategic Resource Conversion Driving Project Development
The company's current drilling campaign comprises 29 holes (approximately 12,000m) of diamond drilling focused on infilling and extending the 2023 Mineral Resource Estimate. To date, Stellar has completed 26 holes and wedges for a total of 11,215m with two rigs currently operating.
The high-grade tin find by Stellar Resources Ltd is particularly significant as it:
- Confirms the geological model's accuracy
- Supports conversion of resources from Inferred to Indicated classification
- Provides critical data for the ongoing Prefeasibility Study
- Demonstrates the effectiveness of wedge and navigational drilling techniques
A second wedge hole (ZS187W1C) has already been completed with assays pending, and a third wedge hole (ZS187W2) is now underway targeting 45m south of the parent hole with the intention of drilling additional wedges.
Understanding Wedge Drilling: A Cost-Effective Exploration Technique
Wedge drilling represents a sophisticated exploration technique that allows multiple targets to be tested from a single parent hole. This approach is particularly valuable in deep drilling environments where establishing new drill pads and drilling complete holes is costly and time-consuming.
In this case, Stellar has wedged off the parent hole ZS187 (which previously returned 64.4m @ 0.53% Sn) to target specific zones within the deposit. The technique involves setting a wedge in the parent hole and deflecting the drill bit at a specific angle to intersect a different portion of the target zone.
This approach offers several advantages:
- Reduced drilling costs
- Faster target testing
- Smaller environmental footprint
- Ability to precisely target specific zones within the mineralisation
What is wedge drilling and why is it important for mineral exploration?
Wedge drilling is a technique where multiple drill holes branch out from a single parent hole, similar to branches from a tree trunk. After drilling the initial parent hole, a wedge-shaped device is inserted at a specific depth, forcing the drill bit to deviate at a predetermined angle.
This creates a new hole path that can target different parts of a mineral deposit from a single surface collar position. It's important for exploration because it allows companies to test multiple target zones while minimising surface disturbance, reducing drilling costs, and increasing efficiency—especially valuable when drilling deep targets or in difficult terrain.
How does wedge drilling contribute to resource classification upgrades?
Wedge drilling provides additional data points within a mineral deposit without the expense of completely new drill holes. When converting resources from lower confidence classifications (like Inferred) to higher confidence classifications (like Indicated), geological continuity must be demonstrated with sufficient drill density.
Wedge drilling helps achieve this required density by providing intermediate sample points between existing holes. This increases confidence in the geological model, grade distribution, and ultimately resource classification—all at lower cost than drilling entirely new holes from surface.
Strengthening Global Tin Market Highlights Project Significance
The recent announcement notes that tin prices have spiked to over US$37,000/t following Indonesia's crackdown on illegal mining and tighter export controls. These developments highlight ongoing global supply risks and reinforce the strategic importance of Stellar's Heemskirk Tin Project, which is located in the stable Tier-1 jurisdiction of Tasmania, Australia.
The high-grade tin find by Stellar Resources Ltd continues to validate the quality of the Heemskirk project, which ranks as the highest-grade undeveloped tin resource in Australia and third globally, with a substantial high-grade resource totaling 7.48Mt at 1.04% Sn, containing 77.87kt of tin. The company aims to become a producer of 3,000-3,500 tpa of payable tin, approximately 1% of global supply.
Project Timeline and Next Steps
Following recent drilling success and the decision to extend the Resource and PFS drilling program, Stellar anticipates:
- Reporting updated Resources at Queen Hill and Severn in 2H 2025
- Completing the Prefeasibility Study in 1H 2026
The PFS is progressing well, including due diligence on the nearby Avebury Plant and investigations on the Comstock plant site, both areas under MOUs.
Why Investors Should Follow Stellar Resources
Stellar Resources presents a compelling investment opportunity for several reasons:
- World-class asset: Heemskirk is the highest-grade undeveloped tin project in Australia and third globally
- Systematic de-risking: The current drilling program is successfully converting resources to higher confidence categories
- Favourable market conditions: Rising tin prices and supply constraints create a positive environment for project development
- Tier-1 jurisdiction: Tasmania offers a stable, mining-friendly environment with excellent infrastructure
- Clear development pathway: With prefeasibility studies progressing and resource updates expected in 2025, investors have multiple near-term catalysts to monitor
The high-grade tin find by Stellar Resources Ltd represents another significant milestone in the company's development journey. With tin being a critical metal for electronics, renewable energy, and the broader energy transition, Stellar's progress at Heemskirk positions the company to benefit from increasing global demand while addressing supply concerns from less stable mining jurisdictions.
Tin: A Critical Metal for the Future
Tin plays an essential role in the modern economy, particularly as the world transitions toward renewable energy and advanced technologies. The metal serves as a crucial component in electronic circuit boards, serving as the primary solder material connecting components. Additionally, tin is vital in the manufacturing of energy storage technologies, including certain types of batteries and supercapacitors.
Global tin demand continues to grow steadily, driven by:
- Expansion of consumer electronics markets
- Increasing electrification of transportation
- Growth in renewable energy infrastructure
- Industrial automation and robotics development
- Emergence of IoT (Internet of Things) applications
The high-grade tin find by Stellar Resources Ltd gains additional significance against this backdrop of growing demand and constrained global supply. Indonesia's recent export restrictions have highlighted the fragility of global tin supply chains, with limited new sources of production under development in stable mining jurisdictions.
As Stellar Resources continues to advance the Heemskirk project toward production, it positions itself as a potential significant contributor to secure tin supply chains in an increasingly resource-constrained world.
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