51m @ 0.55% Tin with 11m Core at 1.10% Boosts Heemskirk Resource
Stellar Resources has reported a significant 51m wide tin mineralisation zone at its Severn deposit, reinforcing the potential to upgrade and expand its Heemskirk Tin Project resource. Ongoing drilling and rising tin prices underpin the company’s advancing prefeasibility study.
- 51.4m @ 0.55% tin intersected in wedge hole ZS187W1C at Severn
- High-grade core of 11.1m @ 1.10% tin within broader mineralised zone
- Supports conversion from Inferred to Indicated resource category
- Prefeasibility study progressing, targeting completion in first half of 2026
- Tin prices climbing amid global supply constraints strengthen project outlook
Significant Tin Intercept at Severn
Stellar Resources Limited (ASX – SRZ) has announced promising results from its ongoing drilling campaign at the Severn deposit, part of the Heemskirk Tin Project in Western Tasmania. The recently completed wedge hole ZS187W1C intersected a broad 51.4-metre zone averaging 0.55% tin, including a notably high-grade core of 11.1 metres at 1.10% tin. This discovery not only confirms the continuity of mineralisation beyond previous drilling but also bolsters confidence in the geological model underpinning the project.
Resource Upgrade and Expansion Potential
The new results are pivotal for Stellar’s strategy to convert Inferred mineral resources into the higher-confidence Indicated category. This conversion is essential for advancing the project towards development readiness. The wedge hole’s proximity; approximately 60 metres; to a previously reported 64-metre intercept with similar grades further supports the robustness of the tin system at Severn. Additional wedge holes are underway, with assays pending, aiming to both infill and extend the resource footprint.
Prefeasibility Study Progress and Market Context
Alongside drilling, Stellar is progressing its prefeasibility study (PFS), targeting completion in the first half of 2026. The PFS will incorporate updated resource estimates from both the Severn and Queen Hill deposits, reflecting the expanded and upgraded mineralisation. Notably, tin prices have surged above US$41,000 per tonne recently, driven by Indonesia’s crackdown on illegal mining and tighter export controls. This market dynamic enhances the strategic value of the Heemskirk project, situated in a stable, Tier-1 jurisdiction.
Efficient Drilling Approach and Future Outlook
Stellar’s use of wedge and navigational drilling techniques has proven efficient and cost-effective, allowing multiple targets to be tested from existing drill platforms. Managing Director Simon Taylor highlighted the consistency of widths and grades as a positive indicator for resource growth and de-risking. With two rigs currently operating and further wedge holes planned, the company is well positioned to continue delivering results that will underpin the next phase of project development.
Environmental and Regulatory Considerations
Environmental baseline studies are underway to support regulatory approvals, including a Notice of Intent with Tasmania’s Environmental Protection Authority. Stellar’s ownership of the project tenements is secure, and the company is advancing metallurgical and mining studies in parallel with drilling to optimize project economics and operational planning.
Bottom Line?
As Stellar Resources advances its drilling and prefeasibility work amid rising tin prices, the Heemskirk project’s path to development gains momentum but hinges on upcoming assay results and resource upgrades.
Questions in the middle?
- How will pending assay results from additional wedge holes impact the overall resource estimate?
- What are the potential timelines and hurdles for moving from prefeasibility to definitive feasibility and production?
- How might global tin supply constraints and price volatility affect project economics and financing?