Stelar Metals Secures Option to Acquire High-Grade Hill of Leaders Tungsten Project Amid Rising Tungsten Prices

Strategic Entry into Tungsten Amid Supply Constraints

Stelar Metals Limited (ASX:SLB) has taken a decisive step into the tungsten space by signing a binding earn-in agreement to acquire 100% of the Hill of Leaders Tungsten Project in Australia's Northern Territory. This move comes as tungsten prices have surged nearly 900% over the past year, driven by Chinese export restrictions, US tariffs, and strategic stockpiling by Western governments. Tungsten’s critical role in defence, electrification, mining, and semiconductor industries underpins Stelar’s timing, with Executive Chair Stephen Biggins highlighting the project's genuine discovery potential and the company’s proven track record in the region.

The Hill of Leaders project sits in the mineral-rich Tennant Creek Inlier, a region where Stelar’s management has prior success, notably with the Finniss Lithium Project (Core Lithium ASX:CXO), which is on track to restart production. The project’s proximity to major infrastructure; only 80km from Tennant Creek and near road and rail links to Darwin Port; adds logistical appeal to its strategic value.

Historical Data Reveals Promising Tungsten Mineralisation

Historical exploration at Hill of Leaders reveals encouraging tungsten mineralisation. Surface rock chip samples have returned exceptional grades, including 6.1%, 2.1%, and 1.3% WO3, alongside significant copper results up to 11.85%. Shallow aircore drilling, with an average depth of just 10 meters, intercepted tungsten mineralisation over a 2km strike, with highlights such as 1m at 0.60% WO3 and 5m at 0.17% WO3. Notably, no bedrock drilling has been conducted beneath the surface mineralisation, leaving key questions about the deposit’s depth and grade distribution unanswered.

Geologically, the mineralisation occurs as a swarm of narrow quartz veins and alteration zones within the Hill of Leaders Granite. The deposit shares strong similarities with the nearby Hatches Creek tungsten deposit (Tungsten Mining NL ASX:TGN), which hosts an inferred mineral resource estimate of 12 million tonnes at 0.17% WO3 and 0.12% copper. Stelar plans a phased reverse circulation drilling program to test the bedrock mineralisation, aiming to better define grade, thickness, and extent once regulatory approvals are secured.

Acquisition Terms Reflect Commitment to Exploration

The earn-in agreement with vendor F&H Brothers Metals includes an initial $80,000 cash payment and the issue of 3 million SLB shares. Stelar commits to a minimum of 1,000 meters of drilling or at least $500,000 in project expenditure within the first 12 months. Should drilling intersect more than 5 meters at 0.25% WO3, an additional 3 million shares will be issued to the vendor. Stelar has the option to acquire the project outright within 12 months by paying either 3 million shares or $450,000 cash. Furthermore, if a JORC-compliant resource exceeding 10,000 tonnes of contained tungsten metal is announced, a further $500,000 in shares or cash will be payable. The vendor retains a 1% net smelter return royalty, and shares issued are subject to a 6-month escrow.

The project tenure is secure, with exploration licence EL33232 granted in 2023, covering 445 square kilometres. Native title is administered by the Mitata Aboriginal Corporation RNTBC, and Stelar is navigating approvals for drilling programs anticipated to commence in the second half of 2026.

Positioning Within Stelar’s Broader Portfolio

This tungsten acquisition fits squarely within Stelar’s broader strategy of expanding its critical minerals portfolio in Tier 1 jurisdictions. The company recently reported high-grade silver assays at its Baratta Copper Project, underscoring its multi-commodity approach to exploration and development. With a cash balance stable around $2 million and ongoing Native Title negotiations in South Australia, Stelar is balancing aggressive project advancement with prudent financial management.

Given the company's history with the Finniss Lithium Project and recent exploration successes, this tungsten venture could mark a pivotal expansion into a metal of growing geopolitical and industrial importance. The planned drilling campaign will be a key catalyst, potentially unlocking a new critical mineral resource in a strategically significant region.