Montana Drill Returns 4.7m at 1.29% Tin as Severn Drilling Nears Completion

High-Grade Tin Returns at Montana Deposit

Stellar Resources Limited (ASX:SRZ) has delivered its first drilling results from the Montana deposit since 2012, intersecting 4.7 metres at 1.29% tin (Sn) from 242.5 metres in hole ZM192. This high-grade intercept confirms Montana’s potential to contribute significantly to the Heemskirk Tin Project, sitting immediately north of the Queen Hill and Severn deposits. Montana currently hosts an Inferred Mineral Resource of 0.7 million tonnes at 1.54% Sn, containing 10.4 kilotonnes of tin, and the new drilling aims to upgrade this resource category ahead of a potential Definitive Feasibility Study (DFS).

The second drill hole at Montana is already underway, reflecting Stellar’s commitment to expanding and upgrading the resource base. This momentum at Montana complements ongoing work at Severn, where drilling is nearing completion.

Severn Drilling Strengthens Resource Confidence

At the Severn deposit, Stellar has reported assay results from wedge hole ZS187W2C and hole ZS191, both revealing multiple zones of significant tin mineralisation. Highlights include 34.8 metres at 0.47% Sn from 530.7 metres in ZS187W2C, with higher-grade intervals of 1.9 metres at 1.07% Sn and 3.6 metres at 1.16% Sn, as well as 4 metres at 1.78% Sn and 2 metres at 1.37% Sn in ZS191. These results support the company’s strategy to convert Inferred resources to the higher-confidence Indicated category, anticipated in an upcoming Mineral Resource Estimate (MRE) update.

Severn’s resource update is expected this quarter and will feed into the Prefeasibility Study (PFS) scheduled for completion in the second half of 2026. The drilling program at Severn, now close to completion with only one hole remaining, is integral to this milestone and continues to build on the substantial resource growth seen earlier this year.

Heemskirk Project Surpasses 100,000 Tonnes of Contained Tin

With the Queen Hill resource update in February 2026 increasing total contained tin to 88,100 tonnes, the addition of Severn and Montana resources pushes Stellar’s Heemskirk Tin Project beyond 100,000 tonnes of contained tin. This elevates Heemskirk to the highest-grade undeveloped tin project in Australia and the third highest-grade globally among peer projects. Stellar’s Managing Director Simon Taylor highlighted the strategic advantage of Montana’s proximity to Queen Hill and Severn, enabling potential integration into planned underground infrastructure.

The Heemskirk project’s strong fundamentals are further underpinned by tin prices hovering above US$50,000 per tonne amid global supply tightening and geopolitical uncertainties. This pricing environment enhances the project’s appeal, especially given its location in a stable, Tier-1 mining jurisdiction and unencumbered offtake prospects.

Advancing Towards Development Readiness

Stellar has completed 32 holes totaling over 12,800 metres in this drilling campaign, with two rigs currently operating to deliver further assay results. The company’s focus remains on finalising the Severn resource update and completing the PFS in the latter half of 2026. These technical milestones will provide critical inputs for advancing Heemskirk towards development readiness.

Recent capital injections, such as the $22.1 million placement led by Metals X earlier this month, have bolstered Stellar’s cash reserves, supporting ongoing feasibility and exploration activities. This financial backing comes as Stellar integrates improved tin recovery techniques at Queen Hill, further enhancing project economics and operational prospects.

While Montana’s first drill hole since 2012 has injected fresh optimism, the ultimate impact on resource size and classification awaits the forthcoming resource updates. Similarly, the near-complete Severn drilling program promises to refine the resource base but still requires final assay and modelling work. The interplay between these developments and the broader tin market dynamics will be key to watch as Stellar progresses.

Stellar’s broader portfolio, including the North Scamander Project with its polymetallic discoveries, adds optionality but remains secondary to the flagship Heemskirk advancement.

In this context, Stellar’s latest drilling results not only reinforce the quality of the Heemskirk resource but also set the stage for critical upcoming catalysts, including the Mineral Resource updates and the PFS delivery.

These developments build on Stellar’s recent $22.1M capital raise, which fuels the company’s feasibility work and resource expansion efforts. Additionally, the improved tin recovery rates at Queen Hill, reported last month, provide a technical foundation likely to influence the PFS outcomes and project valuation, linking closely with the resource expansion at Severn and Montana tin recovery gains.