Prospect Hill Tin Project: HRE Targets High-Grade 4.85% Sn Intercepts in New Acquisition

Strategic Acquisition Expands HRE’s Critical Minerals Portfolio

Heavy Rare Earths Limited (ASX, HRE) has entered into a binding agreement with Havilah Resources Limited to acquire an initial 80% interest in all non-uranium mineral rights at the Prospect Hill project, located in South Australia’s Northern Flinders Ranges. This transaction marks a significant expansion for HRE, complementing its existing uranium and rare earths assets with a high-grade tin project of considerable scale and historical significance.

Prospect Hill, South Australia’s Largest Known Tin Project

Prospect Hill stands out as South Australia’s most advanced tin project, boasting extensive historic exploration data spanning several decades. The project’s highlight is the South Ridge prospect, where drilling has confirmed tin mineralisation over a 500-metre strike length and to depths of 120 metres. Notable high-grade intercepts include 3 metres at 4.85% tin and 5 metres at 3.32% tin, underscoring the deposit’s quality.

Historic metallurgical studies indicate that tin, primarily present as cassiterite, can be efficiently recovered by gravity separation methods with recoveries around 80%. The project also hosts several other prospects with encouraging surface tin grades, offering further exploration upside.

Critical Minerals in a Geopolitically Sensitive Market

Tin is increasingly recognised as a critical mineral by many Western economies due to looming supply deficits and geopolitical uncertainties affecting global supply chains. Its applications span electronics, solder, stabilizers, and various industrial uses, making it indispensable in clean energy and technology sectors. HRE’s acquisition of Prospect Hill strategically positions the company to benefit from rising demand for sustainably sourced critical minerals.

Next Steps, Drilling and Resource Definition

HRE plans to fast-track a drilling program at South Ridge aimed at establishing a maiden Mineral Resource estimate. This will be supported by metallurgical testwork, including advanced sensor-based sorting technology trials, to optimise tin recovery and concentrate quality. The company also intends to explore other underexplored prospects within the project area to potentially expand its resource base.

The transaction includes an earn-in agreement requiring HRE to spend a minimum of $1.5 million on exploration over three years, with a commitment to drill at least 3,750 metres. Upon earning its interest, a joint venture will be formed with Havilah, with Havilah retaining a 20% pro-rata interest and a 1.5% net smelter royalty.

Conditions and Outlook

The acquisition remains subject to shareholder approval at an upcoming Extraordinary General Meeting and other customary conditions precedent. If successful, this deal will materially enhance HRE’s portfolio, aligning with global trends prioritising critical and clean energy minerals. Investors will be watching closely as HRE advances drilling and feasibility studies, potentially unlocking significant value from this historically rich tin project.