High-Grade Tin Success: Stellar Resources Strikes Again at Queen Hill
Stellar Resources (ASX: SRZ) has announced further high-grade tin intercepts at its Heemskirk Tin Project in Western Tasmania, significantly extending the Queen Hill deposit and reinforcing the project's development potential. The latest drilling results continue to demonstrate strong mineralisation beyond the boundaries of the existing resource.
Impressive New Drill Results Extend High-Grade Zone
The standout result from the company's ongoing 9,500-metre diamond drilling campaign comes from drillhole ZQ186, which successfully intercepted:
- 6.3m @ 2.2% Sn from 369.3m, including
- 2.0m @ 2.81% Sn from 374m
This high-grade intersection is located approximately 50 metres below the previously announced intercept of 8m @ 1.42% Sn in drillhole ZQ181, and notably contains a higher tin grade-thickness than the two holes above it on the same drill section.
"As we enter the later stages of the 9,500m infill and extensional drill program, we continue hitting strong mineralisation at Queen Hill confirming the consistency of the deposit and providing further support for Resource upgrade and expansion," said Stellar's Managing Director Simon Taylor.
The results are particularly significant as they support:
- The potential continuation of the Heemskirk tin system at depth
- Likely conversion of Inferred resources to the higher-confidence Indicated category in the upcoming Mineral Resource Estimate (MRE) update
- Justification for extending the current drilling program
What Makes Grade-Thickness Important for Tin Deposits?
Grade-thickness (calculated as the percentage of tin multiplied by the intercept width) is a critical metric for understanding the economic potential of a mineral deposit. For tin projects specifically, higher grade-thickness values often indicate zones that could deliver more metal per metre of mining development.
In the case of ZQ186, not only did the drill hole intersect substantial tin grades, but the fact that the grade-thickness increases with depth suggests the potential for the mineralised system to continue growing stronger below the current resource boundaries.
This finding is particularly relevant for Stellar Resources' high-grade tin project, as it indicates the possibility of expanding the resource beyond its current defined limits. Furthermore, recent stellar tin discovery at Heemskirk has shown significant expansion potential for the project.
Understanding Tin Mineralisation at Heemskirk
The Heemskirk Tin Project hosts mineralisation that is classified as granite-related tin-sulphide-siderite vein and replacement style deposits. The mineralisation is hosted in the Oonah Formation and Crimson Creek Formation sediments and volcanics.
The tin mineralisation is primarily controlled by northeast plunging fold structures associated with northwest trending faults. This structural control creates predictable patterns that can be targeted through strategic drilling.
Cassiterite (tin oxide) is the dominant tin-bearing mineral at Heemskirk, occurring as free grains and in complex mineral composites. The grain size varies according to ore type, with the Severn deposit having the coarsest grain size and Upper Queen Hill having the finest.
Metallurgical studies indicate that Stellar Resources' high-grade tin project can produce concentrates grading approximately 48% tin at an overall tin recovery of 73%. In comparison, other projects like the Tallebung project's high-grade tin results have shown similar promising recovery potential in the broader tin exploration sector.
Strategic Progress Toward Production Goal
Stellar Resources aims to become a producer of 3,000 to 3,500 tonnes per annum (tpa) of payable tin over the first 6-10 years of production at Heemskirk. This represents a significant increase from the base case outlined in the 2024 Scoping Study, which projected 1,900 tpa over a 12-year mine life.
The company's prefeasibility studies are advancing well, with key activities including:
- A 24-hole (~9,500m) diamond drilling campaign focused on infill and extensions to the 2023 Mineral Resource
- Ore sorting test work of material from the Queen Hill deposit
- Planning for an extension to the current drill program based on recent success
To date, Stellar has completed 23 holes for a total of 8,861 metres with two rigs currently operating. The company expects to report further assays as they become available.
Investment Thesis: Tasmania's Premier Tin Project
Stellar Resources' high-grade tin project stands out as the highest-grade undeveloped tin resource in Australia and the third highest globally. The company has defined a substantial high-grade resource totalling:
| Category | Tonnage | Grade | Contained Tin |
|---|---|---|---|
| Indicated | 3.52Mt | 1.05% Sn | 36.99kt |
| Inferred | 3.96Mt | 1.03% Sn | 40.88kt |
| Total | 7.48Mt | 1.04% Sn | 77.87kt |
With tin being a critical mineral for electronics manufacturing, renewable energy technologies, and the broader green energy transition, Stellar is well-positioned to benefit from growing global demand. The metal's applications in soldering, electric vehicles, and solar panels make it strategically important in a decarbonising economy.
The Strategic Importance of Tin in Modern Technology
Tin has emerged as a critical metal for the modern economy, with applications extending well beyond traditional uses. As global economies continue to transition toward sustainable energy solutions, tin demand is expected to increase substantially.
Key applications driving tin demand include:
- Electronics Manufacturing: Tin is a primary component in solder used in circuit boards and electronic devices
- Electric Vehicles: Used in both battery technology and circuitry
- Solar Panels: Essential for connecting cells and components
- Energy Storage: Components in various battery technologies
This expanding demand profile creates a favourable market environment for companies developing tin resources, particularly high-grade deposits like Stellar Resources' high-grade tin project. Additionally, mining companies engaging in community and government partnerships are finding increasing success in developing their projects with strong stakeholder support.
Why Investors Should Follow Stellar Resources
Stellar Resources represents a compelling investment opportunity for several reasons:
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High-Grade Resource: As the highest-grade undeveloped tin project in Australia, Heemskirk benefits from the economic advantages that typically come with higher-grade deposits.
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Resource Growth Potential: The latest drilling results demonstrate that the deposit remains open at depth, with mineralisation actually improving in terms of grade-thickness.
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Clear Development Timeline: With prefeasibility studies progressing well and on track for delivery in the second half of 2025, investors have visibility on upcoming catalysts.
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Strategic Metal: Tin is increasingly recognised as a critical metal for the green energy transition, with applications in solar panels, electric vehicles, and electronics.
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Mining-Friendly Jurisdiction: Western Tasmania has a long history of mining with established infrastructure and supportive regulatory frameworks.
As Stellar continues to advance its flagship Heemskirk Tin Project toward development, each successful drill result adds further weight to the company's ambition of becoming a significant player in the global tin market. Some mining companies are even pursuing strategic expansion into new regions to diversify their resource portfolios, though Stellar's focus remains on developing its high-quality tin assets.
With tin's growing importance in technologies driving the green energy transition, Stellar Resources' high-grade tin project represents a focused opportunity to gain exposure to this critical metal. Meanwhile, the broader mining sector continues to see exciting developments, including high-grade gold discoveries that complement the strategic minerals landscape.
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