Stellar Resources has uncovered a new high-grade tin lode 60 meters beneath its existing Severn deposit, setting the stage for a resource upgrade and advancing its Heemskirk Tin Project development.
- New high-grade tin mineralisation intersected 60m below Severn Resource
- Drilling results support upgrading Inferred to Indicated Resource categories
- Heemskirk Project’s total contained tin exceeds 100,000 tonnes
- Prefeasibility Study and updated Severn Resource due in Q2 2026
- Tin prices near record highs bolster project’s strategic appeal
Discovery Deepens Severn Deposit Potential
Stellar Resources Limited (ASX: SRZ) has announced a significant breakthrough at its Heemskirk Tin Project in Western Tasmania, revealing a new high-grade tin lode approximately 60 meters below the current Severn Mineral Resource. The wedge hole ZS187W2B intersected 12.6 meters at 0.83% tin, including a standout 2.9 meters at 3.00% tin, well beyond the 2023 resource boundary. This discovery not only confirms the geological model but also highlights untapped depth potential within the Severn deposit.
Resource Expansion and Upgrade on Track
The drilling campaign, comprising 29 holes totaling over 12,600 meters, is focused on converting Inferred Resources to the higher-confidence Indicated category and expanding the overall resource base. Stellar’s recent Queen Hill update pushed the total Heemskirk contained tin above 100,000 tonnes, cementing its status as Australia's highest-grade undeveloped tin project and ranking third globally among peer projects. The upcoming Severn resource update, expected in Q2 2026, will integrate these new results and underpin the Prefeasibility Study (PFS) scheduled for completion the same quarter.
Strategic Timing Amid Rising Tin Prices
The timing of this resource expansion is particularly fortuitous as global tin prices have surged near all-time highs, currently trading above US$50,000 per tonne. Supply constraints and geopolitical uncertainties are tightening the market, enhancing the strategic value of Heemskirk’s high-grade tin resources located in a stable, Tier-1 jurisdiction. Stellar’s Managing Director Simon Taylor emphasised the cost-effectiveness of their wedge drilling strategy and the strong foundation these results provide for advancing development studies.
Ongoing Drilling and Development Plans
Drilling continues with two rigs active, targeting further resource conversion and extensions at Severn. Additional holes are planned to maximise resource size and confidence ahead of the PFS. Concurrent metallurgical and mining studies are progressing, supported by robust assay data and geological modelling. Environmental baseline studies are also underway to facilitate regulatory approvals. Stellar aims to produce 3,000 to 3,500 tonnes of payable tin annually, representing about 1% of global supply, once operational.
Looking Ahead
With the Severn deposit’s new high-grade lode discovery and the Queen Hill resource expansion, Stellar Resources is poised to solidify its position as a leading tin developer globally. The forthcoming resource update and PFS will be critical milestones, providing clearer insights into project economics and development timelines amid a tightening global tin market.
Bottom Line?
Stellar’s deep Severn discovery and rising tin prices set the stage for a pivotal resource upgrade and development leap.
Questions in the middle?
- How will the new high-grade lode impact the overall economics of the Heemskirk project?
- What are the timelines and key milestones for the Prefeasibility Study completion and final investment decision?
- Could further drilling reveal additional high-grade extensions beyond the current resource envelope?