Stellar Resources has pushed its Heemskirk Tin Project closer to development readiness, reporting a 41% increase in the Queen Hill resource and uncovering new high-grade tin mineralisation below the Severn deposit. The company also secured a key tailings facility agreement and maintains a strong cash position amid volatile tin prices.
- 41% increase in Queen Hill Mineral Resource to 4.11Mt at 0.85% tin
- Total Heemskirk resource now 9.5Mt containing 88,100 tonnes of tin
- New high-grade tin zone discovered 60m below Severn deposit
- Binding agreement secured for Tailings Storage Facility at Comstock site
- Strong cash balance of $11.7 million supports ongoing development
Resource Growth Boosts Heemskirk’s Tin Inventory Beyond 100,000 Tonnes
Stellar Resources (ASX:SRZ) has reported a substantial 41% increase in the Mineral Resource Estimate (MRE) at its Queen Hill deposit, part of the flagship Heemskirk Tin Project in Tasmania. The updated resource now stands at 4.11 million tonnes at 0.85% tin, containing 34,900 tonnes of tin. This growth lifts the total Heemskirk resource to 9.5 million tonnes at 0.93% tin, equating to 88,100 tonnes of contained tin. Including the nearby St Dizier satellite deposit, Stellar’s tin inventory surpasses the 100,000-tonne threshold, a significant milestone for the project’s development ambitions.
The Heemskirk Project remains the highest-grade undeveloped tin resource in Australia and ranks third globally, underpinning Stellar’s aspiration to become a top 10 global tin producer. The company is currently conducting a Prefeasibility Study (PFS) aimed at optimising the project for a production target of 3,000 to 3,500 tonnes per annum of payable tin, approximately 1% of global supply. However, Stellar cautions this production target is aspirational without reasonable grounds for certainty.
Drilling Uncovers New High-Grade Tin Zone Below Severn Deposit
Ongoing diamond drilling at the Severn deposit continues to deliver encouraging results, with 31 holes completed or underway totaling 13,700 metres. Notably, wedge hole ZS187W2B intersected multiple zones of tin mineralisation, including a new high-grade zone approximately 60 metres below the existing 2023 resource model. This zone returned 12.6 metres at 0.83% tin, including a standout 2.9 metres at 3.00% tin, highlighting significant potential to expand and upgrade the resource.
These results reinforce Stellar’s confidence in the Heemskirk system’s growth potential and set the stage for an updated Severn resource estimate expected in the second quarter of 2026. The drilling program also supports critical metallurgical and geotechnical studies feeding into the PFS, designed to enhance ore sorting, processing design, and tailings management.
This drilling success builds on the company’s recent new high-grade tin lode discovery below Severn, which has been a key catalyst for advancing the project’s development readiness.
Securing Infrastructure: Tailings Storage Facility Agreement Signed
In a critical infrastructure milestone, Stellar signed a binding agreement granting consent to lodge a Mining Licence Application over the Comstock site adjacent to Heemskirk for a Tailings Storage Facility (TSF). After evaluating over 22 potential sites, the Comstock location was identified as suitable from environmental and economic perspectives and will be incorporated into the PFS.
Additionally, Stellar is assessing the nearby Avebury Nickel Mine and Plant, currently on care and maintenance, as a potential processing route. The company has secured rights to negotiate access for haulage infrastructure if Avebury is acquired, potentially providing a cost-effective processing solution.
Robust Cash Position and Strategic Land Holdings
Stellar ended the March quarter with a strong cash position of $11.7 million, including $7 million in term deposits. Exploration and evaluation expenditures were $1.13 million for the quarter, reflecting active drilling and study work. The company holds extensive tenements covering 174.8 km² in the Zeehan region and 335 km² in northeast Tasmania, including the recently acquired Granite Tor licence, which expands its footprint in a world-class tin province geologically linked to Heemskirk and the Renison Tin Mine.
Tin Market Volatility Adds Complexity to Project Economics
The tin market experienced historic price volatility during the quarter, with LME spot prices swinging between US$41,700 and a nominal all-time high of US$57,425 per tonne before closing at US$45,610. This surge was driven by speculative capital inflows and heightened investor activity, prompting regulatory interventions to temper market exuberance. Despite this volatility and rising LME stockpiles, structural supply deficits persist due to export permit delays in Indonesia and mining suspensions in Myanmar, alongside robust demand from semiconductor and data centre sectors.
These market dynamics add layers of uncertainty to the project’s economic outlook, even as Stellar presses forward with its PFS and resource upgrades.
Exploration Delays and Future Catalysts
Exploration at the East Renison Project, focused on polymetallic targets near the Renison Tin Mine, has been delayed with drilling rescheduled to October 2026 due to rig availability. The company also plans soil and stream sampling at Granite Tor to prioritise future drilling targets.
Looking ahead, the market will be watching for the updated Severn resource estimate and the PFS completion targeted for early Q3 2026. These milestones will be critical in defining the project's scale and viability amid fluctuating tin prices and evolving supply constraints.
Bottom Line?
Stellar’s expanded resource base and infrastructure agreements position Heemskirk for a pivotal development phase, but volatile tin prices and aspirational production targets warrant cautious optimism.
Questions in the middle?
- How will the final PFS outcomes balance resource growth with fluctuating tin prices?
- Could the potential acquisition of the Avebury Nickel Plant alter processing economics or timelines?
- What impact will regulatory measures on tin markets have on project financing and offtake negotiations?