How Stellar Resources’ Drilling Surge Could Boost Tasmania’s Tin Output

Prefeasibility Drilling Advances Heemskirk

Stellar Resources Limited (ASX – SRZ) has reported a productive December 2025 quarter focused on advancing its flagship Heemskirk Tin Project in Tasmania. The company’s expanded diamond drilling program at the Severn deposit has delivered thick, high-grade tin intersections, including a standout 51.4 metres at 0.55% tin with a high-grade core exceeding 1% tin. These results underpin Stellar’s confidence in upgrading and expanding the existing Mineral Resource Estimate (MRE) ahead of the prefeasibility study (PFS) completion targeted for the first half of 2026.

The drilling program, now comprising 28 holes and wedges for over 12,000 metres, is designed to convert inferred resources to indicated status and provide material for ongoing metallurgical testwork. The company aims to boost tin output beyond the 2024 Scoping Study baseline, aspiring to produce 3,000 to 3,500 tonnes per annum of payable tin, approximately 1% of global supply, though this remains aspirational.

Metallurgical Testwork Supports Premium Product

Complementing the drilling success, metallurgical studies on Severn deposit samples have demonstrated strong tin recoveries and the production of a clean, high-quality concentrate. The testwork, conducted at ALS Metallurgy Burnie and overseen by an experienced metallurgist, confirmed the ore’s suitability for a three-stage crushing and milling process with effective ore sorting and flotation. Notably, the concentrate meets stringent smelter specifications with low levels of penalty elements, positioning Heemskirk as a potential source of premium tin concentrate from a stable, Tier-1 jurisdiction.

Strategic Expansion and Exploration Success

Beyond Heemskirk, Stellar reported exceptional surface sampling results at its East Renison Project, with assays revealing high-grade silver, antimony, gold, and critical minerals such as indium, an element vital for liquid crystal display technology and listed as a critical mineral by the US Geological Survey. The company plans to drill a polymetallic target at Carbine Hill in April, supported by a Tasmanian government exploration grant.

Further strengthening its regional position, Stellar has entered into a term sheet to acquire the Granite Tor licence east of the Mt Read Volcanic complex. This acquisition covers prospective geology analogous to the Renison Tin Mine and Heemskirk, including historic high-grade tin and rare earth element anomalies, offering new exploration upside in Tasmania’s premier tin province.

Robust Financial Position Amid Strong Tin Market

Stellar’s December quarter was bolstered by a well-supported capital raising, securing $9.5 million through placements to institutional and sophisticated investors. This has lifted the company’s cash position to a healthy $13.35 million, providing ample runway to advance development studies and exploration activities.

The tin market backdrop remains favourable, with prices rallying strongly during the quarter and continuing to climb post-reporting, driven by supply constraints in key producing regions and rising demand from the semiconductor industry. This market momentum enhances the strategic relevance of Stellar’s high-grade tin assets and supports investor appetite for junior tin producers.

Managing Director Simon Taylor highlighted the company’s momentum, noting the encouraging drilling and metallurgical results, growing offtake interest, and the strengthened balance sheet as key enablers for progressing Heemskirk towards production readiness.