How Stellar Resources’ Drilling and Ore Sorting Could Transform Heemskirk Tin Project
Stellar Resources advances its Heemskirk Tin Project with expanded drilling revealing high-grade tin zones and ore sorting trials confirming cost-saving potential. Strategic MOUs and a strong cash position underpin the company’s push towards becoming a top global tin producer.
- Expanded diamond drilling program at Severn deposit yields significant high-grade tin intersections
- Large-scale ore sorting trials at Queen Hill demonstrate increased tin grades and reduced processing costs
- Prefeasibility Study (PFS) activities progressing with plans to boost tin output to 3,000–3,500 tonnes per annum
- Strategic MOUs signed for Comstock site extension and Avebury Nickel Mine processing plant
- Strong cash position of AUD 6.7 million supports ongoing exploration and development
Prefeasibility Study Advances Amid Drilling Success
Stellar Resources Limited (ASX – SRZ) has reported robust progress in its September 2025 quarterly activities, centered on advancing the Heemskirk Tin Project in Tasmania towards production readiness. The company’s expanded diamond drilling program at the Severn deposit has delivered encouraging results, including a standout intersection of 10.2 metres at 1.68% tin within a broader 64.4-metre mineralised zone. These findings reinforce the potential to upgrade and expand the existing Mineral Resource Estimate (MRE), with updated resource figures anticipated in the second half of 2025 and the Prefeasibility Study (PFS) targeted for completion in the first half of 2026.
Prefeasibility activities are well underway, focusing on metallurgical, mining, and ore sorting studies. The Board’s approval of an additional 2,500 metres of diamond drilling reflects confidence in the resource expansion potential. Stellar aims to increase mining rates and optimise plant size, with ore sorting incorporated into the process flow sheet to enhance project economics.
Ore Sorting Trials Confirm Cost and Grade Benefits
Large-scale ore sorting trials conducted on samples from the Queen Hill deposit have confirmed the viability of X-Ray Transmission (XRT) sorting technology to upgrade tin head grades and reduce processing costs. The trials achieved a 1.6 times grade uplift to 1.50% tin by rejecting 50% of the mass while maintaining an 82.4% tin recovery rate. Including a medium-grade product stream further increased tin recovery to 97.2%, with a 1.2 times grade uplift and 21.1% mass rejection.
Comminution testing showed that removing waste material prior to grinding could reduce power consumption by up to 10%, translating into lower operating costs. These results support the inclusion of ore sorting in the PFS, offering potential reductions in plant capital expenditure, operating costs, tailings volumes, and enabling improved grade blending and underground backfill strategies.
Strategic Partnerships and Exploration Expansion
Stellar has extended its Memorandum of Understanding (MOU) for the Comstock site adjacent to Heemskirk, securing access to existing infrastructure including tailings storage and power. Additionally, a new six-month non-binding MOU was signed with Hartree MI UK Limited for the nearby Avebury Nickel Mine and processing plant, located less than 10 kilometres from Heemskirk. This plant, currently in care and maintenance, offers potential processing, toll treatment, or acquisition options that could enhance development flexibility.
Beyond Heemskirk, Stellar received a $55,000 exploration drilling grant from the Tasmanian Government to test the Carbine Hill target within the East Renison Project, an area showing substantial polymetallic mineralisation. Post-quarter, the company entered a term sheet to acquire the Granite Tor licence, expanding its footprint in Tasmania’s world-class tin province. Historical data from Granite Tor indicates strong potential for tin and rare earth element mineralisation, further diversifying Stellar’s exploration portfolio.
Financial Position and Market Context
Stellar ended the quarter with a solid cash position of AUD 6.7 million, bolstered by the exercise of options raising AUD 2.6 million. The company continues to invest in exploration and prefeasibility activities, with expenditure focused on drilling, metallurgical studies, and corporate costs.
The tin market remains tight, with LME spot prices fluctuating between US$31,000 and US$36,000 per tonne during the quarter and spiking above US$37,000 post-quarter due to supply disruptions and export controls, notably in Indonesia. This market backdrop underscores the strategic importance of advancing high-grade tin projects like Heemskirk.
Stellar’s Managing Director Simon Taylor emphasised the project’s status as one of the highest-grade undeveloped tin resources globally and highlighted the company’s aspiration to become a top 10 global tin producer. While the target production of 3,000 to 3,500 tonnes per annum of payable tin is aspirational, ongoing drilling and study results provide a strong foundation for this ambition.
Bottom Line?
Stellar Resources’ continued drilling success and ore sorting breakthroughs position Heemskirk as a compelling tin development story amid tightening global supply.
Questions in the middle?
- Will upcoming Mineral Resource updates confirm significant resource upgrades at Severn and Queen Hill?
- How will the integration of the Avebury processing plant impact project timelines and capital requirements?
- What are the risks and contingencies if tin prices fluctuate or drilling results fall short of expectations?