Can Stellar Sustain Momentum Amid Tin Price Volatility and Ambitious Targets?

• Prefeasibility study activities progressing well with metallurgical and mining studies
• Drilling program extended by 2,500m following high-grade tin discoveries at Queen Hill
• Strong cash position of $6.14 million supports ongoing exploration and development
• East Renison Project licence application accepted, expanding strategic ground
• Tin market fundamentals remain strong despite recent price volatility

Prefeasibility Progress and Drilling Success

Stellar Resources Limited (ASX, SRZ) has reported significant advancements in its Heemskirk Tin Project during the June 2025 quarter. The company’s prefeasibility study (PFS) activities are on track, with metallurgical, mining, and ore sorting studies delivering encouraging results. Notably, drilling at the Queen Hill deposit has uncovered new zones of high-grade tin mineralisation, prompting the Board to approve an extension of the diamond drilling program by an additional 2,500 metres.

This extended drilling aims to expand the mineral resource base and upgrade inferred resources to the indicated category, particularly at Queen Hill where mining is planned to commence. The program has already completed 22 holes totalling 9,720 metres, surpassing the original plan, and continues to reveal wider and higher-grade intersections than anticipated.

Robust Resource and Economic Outlook

The Heemskirk Project hosts a substantial high-grade tin resource, with a total mineral resource estimate of 7.48 million tonnes at 1.04% tin, containing approximately 77,870 tonnes of tin. This positions Heemskirk as the highest-grade undeveloped tin resource in Australia and the third largest globally. The recent scoping study update confirms robust project economics, projecting a 12-year mine life with an average annual tin production of around 22,800 tonnes of concentrate.

Stellar is targeting a production rate of 3,000 to 3,500 tonnes of payable tin per annum, representing about 1% of global supply. While this remains an aspirational goal without guaranteed achievement, the ongoing PFS work is focused on optimising mining rates, plant capacity, and incorporating ore sorting technology to enhance grade and recovery.

Strategic Expansion and Market Context

Beyond Heemskirk, Stellar has secured acceptance of a new exploration licence application for the Ringville area adjacent to the Renison Tin Mine, further expanding its East Renison Project footprint. Historical drilling in this area has returned high-grade tin intersections, adding to the project's potential.

Financially, Stellar maintains a strong cash position of $6.14 million, including $3 million in term deposits, supporting its exploration and development activities. The company’s expenditure during the quarter focused primarily on exploration and evaluation, reflecting its commitment to advancing the project.

On the market front, tin prices experienced volatility during the quarter, with spot prices peaking at multi-year highs before retracing. Despite fluctuations, underlying supply concerns and low stockpiles on the London Metal Exchange sustain a positive outlook for tin demand and pricing, reinforcing Stellar’s strategic timing.

Looking Ahead

Stellar Resources is poised to continue its momentum with ongoing assay results from the extended drill program and further ore sorting testwork expected to influence the final PFS outcomes. The company’s focus remains on positioning Heemskirk as a development-ready project capable of contributing meaningfully to the global tin supply.

Bottom Line?

Stellar’s drilling extension and strong cash reserves set the stage for a pivotal phase in advancing Heemskirk towards production.

Questions in the middle?

• Will further drilling confirm a significantly larger tin resource at Heemskirk?
• How will ore sorting advancements impact project economics and processing efficiency?
• What are the implications of tin market volatility for Stellar’s development timeline and financing?