How Stellar’s New Mining Licence Consent Could Transform Heemskirk Tin Project

Mining Licence Consent Advances Heemskirk Project

Stellar Resources Limited (ASX, SRZ) has taken a significant step forward in developing its Heemskirk Tin Project in western Tasmania by securing consent from Australian Hualong Pty Ltd to apply for a mining licence over an area adjacent to the existing project. This area, known as the Comstock site, has been identified as a prime location for a Tailings Storage Facility (TSF), a critical piece of infrastructure for the project’s future operations.

The consent comes through a binding agreement that not only allows Stellar to lodge the mining licence application but also integrates the TSF site into the company’s ongoing Prefeasibility Study (PFS). This study is exploring various pathways to bring Heemskirk into production, including standalone development and leveraging existing regional infrastructure.

Strategic Infrastructure and Regional Synergies

Stellar’s detailed assessment, supported by reputable engineering consultants, evaluated over 22 potential sites before selecting the Comstock area south of Heemskirk as the most environmentally and economically suitable for the TSF. This choice reflects a careful balance of operational efficiency and environmental stewardship, aligning with Tasmania’s reputation as a stable, mining-friendly jurisdiction.

In parallel, Stellar is conducting due diligence on the nearby Avebury Nickel Mine and Plant, located less than 10 kilometres away. Through a separate memorandum of understanding with the owners, the company is considering Avebury as a potential processing route for its tin ore. Should this option be pursued, the Comstock owners have agreed to negotiate access for a haulage road linking Avebury and Heemskirk, potentially streamlining logistics and reducing capital expenditure.

Production Ambitions and Project Outlook

Stellar aims to produce between 3,000 and 3,500 tonnes per annum of payable tin over the first six to ten years of production, a notable increase from the previous scoping study’s base case of 1,900 tonnes per annum over 12 years. While the company acknowledges this target as aspirational, the ongoing resource drilling and ore sorting test work are designed to enhance resource confidence and improve project economics.

Updated resource estimates for the Queen Hill and Severn deposits are expected in early 2026, with the PFS completion slated for the first half of the year. These milestones will be critical in shaping the final development strategy and securing further investment.

Financial and Regulatory Considerations

The agreement with Australian Hualong Pty Ltd includes staged payments totaling $400,000 and the issuance of 10 million fully paid ordinary shares subject to a 12-month voluntary escrow. This structured consideration underscores the strategic value of the Comstock site to Stellar’s broader development plans.

Importantly, the company confirms that all material assumptions underpinning its previous resource and production targets remain unchanged, maintaining compliance with the 2012 JORC Code and ensuring transparency for investors.