Resource Upgrade Potential Rises as Stellar Targets 3,500 tpa Tin Production at Heemskirk

Strong Drill Results at Queen Hill

Stellar Resources Limited (ASX: SRZ) has announced compelling high-grade tin mineralisation intercepts from recent drilling at the Queen Hill deposit, part of its flagship Heemskirk Tin Project in Western Tasmania. Drillholes ZQ169 and ZQ181, located at the northern extent of the 2023 Mineral Resource Estimate (MRE), intersected significant tin grades within areas previously modelled as lower grade. Notably, ZQ181 returned 8.0 metres at 1.42% tin from 341 metres, including a higher-grade 3.45 metres at 2.68% tin, while ZQ169 yielded 5.3 metres at 1.85% tin from 307.61 metres.

These results reinforce the potential for resource expansion and importantly support the conversion of material from the Inferred to the Indicated category in the forthcoming MRE update, expected in the third quarter of 2025.

Advancing Resource Confidence and Project Development

Drillhole ZQ178, positioned centrally within Queen Hill, also delivered encouraging results with multiple mineralised zones, including 1.85 metres at 1.77% tin and 5.85 metres at 1.09% tin. These intersections are critical for metallurgical testwork and resource confidence upgrades, feeding into the Prefeasibility Study (PFS) currently underway.

Stellar has completed 19 of 24 planned diamond drillholes, totalling 8,760 metres, with two rigs actively drilling. The program aims to expand and upgrade the resource base while providing essential technical data to advance Heemskirk towards a development-ready status. The PFS remains on track for delivery in the second half of 2025, targeting a production scale of 3,000 to 3,500 tonnes per annum (tpa) of payable tin over the first 6 to 10 years of operation.

Exploration and Technical Insights

Additional drilling targeted a Down Hole Electromagnetic (DHEM) conductor identified in hole ZQ173, with hole ZQ180 drilled to test this anomaly. Although assays are pending, initial observations indicate trace sulphides and suggest the mineralisation may dip westwards, necessitating adjusted drill orientations for follow-up holes. A new drillhole, ZQ186, is underway to test depth extensions below ZQ181, reflecting Stellar’s commitment to systematically delineate the tin system.

Metallurgical testwork supervised by Worley-Parsons and conducted at ALS Laboratories continues to demonstrate promising tin recoveries, with anticipated concentrates grading approximately 48% tin and overall recovery rates around 73%. Environmental baseline studies are also progressing to support regulatory approvals, including a Notice of Intent with Tasmania’s Environmental Protection Authority.

Strategic Outlook

Managing Director Simon Taylor highlighted the significance of these results, noting the potential for resource expansion to the north and at depth, and the likelihood of upgrading resource classifications. He reiterated Stellar’s aspiration to become a meaningful tin producer, contributing roughly 1% of global supply from the Heemskirk Project, which hosts one of the highest-grade undeveloped tin resources in Australia and ranks third globally.

While the production target remains aspirational, the company’s methodical approach to drilling, resource definition, and prefeasibility work positions it well to unlock value and advance towards production decisions.