Stellar Resources Lifts Severn Tin Resource 64% Ahead of PFS Completion

Severn Deposit Drives Resource Growth

Stellar Resources (ASX:SRZ) has reported a significant 64% increase in the Mineral Resource Estimate (MRE) at its Severn deposit, part of the flagship Heemskirk Tin Project in Tasmania. The updated estimate now stands at 8.54 million tonnes grading 0.82% tin, containing 70,002 tonnes of tin. This upgrade lifts the total Heemskirk resource to 13.36 million tonnes at 0.86% tin, or 115,300 tonnes of contained tin, consolidating Heemskirk’s position as one of the highest-grade undeveloped tin projects globally.

The Severn resource upgrade was achieved using a lower 0.4% tin cutoff grade, reflecting the stronger tin price environment which has surged above US$50,000 per tonne in 2026. Notably, the Indicated Resource category at Severn more than doubled, increasing by 125% to 6.05 million tonnes at 0.84% tin. The combined Heemskirk and nearby St Dizier satellite deposit now hold over 129,000 tonnes of contained tin, underscoring the project’s scale and potential.

Prefeasibility Study Nears Completion Amid Drilling Success

Prefeasibility Study (PFS) activities are approaching completion, with a report expected in the third quarter of 2026. The PFS aims to build on the 2024 Scoping Study by boosting metal output and refining project economics. Stellar has completed a 13,700-metre resource drilling program at Heemskirk, including high-grade intercepts at Severn such as 34.8 metres at 0.47% tin from 530.7 metres, and 4 metres at 1.78% tin from 492 metres. First drilling at the Montana deposit since 2012 also returned promising results, including 4.7 metres at 1.29% tin from 242.5 metres, with further drilling underway to potentially incorporate Montana into a definitive feasibility study.

Two rigs continue to operate, targeting extensions near the current resource and untested geological targets. The establishment of an Owner’s Study Team with experienced internal and external consultants signals a focused push towards project development readiness.

Metallurgical Advances Boost Recovery Rates

Metallurgical testwork at ALS Metallurgy Burnie on ore-sorted Queen Hill material has demonstrated a clear pathway to tin recoveries exceeding 70%, a notable improvement from prior studies that estimated ~62.7% recovery. Enhancements to the processing flowsheet, including ore sorting, gravity regrind, and magnetic separation, have improved concentrate grade and overall cassiterite recovery. This progress supports the production of saleable tin concentrate with grades between 42-49% tin, aligning with smelter specifications. These improvements are expected to positively impact project economics as the PFS concludes.

Capital Raising and Strategic Partnership with Metals X

Stellar successfully completed a $22.1 million placement during the quarter, including a $17 million strategic investment from Metals X Limited (ASX:MLX), which now holds a 16.4% stake in the company. Metals X has nominated Brett Smith, an industry veteran with over 35 years’ experience in mineral processing and project development, to join Stellar’s board. This capital injection strengthens Stellar’s balance sheet, with cash and term deposits totaling $30.1 million as of 30 June 2026, positioning the company well to fund ongoing development activities.

Exploration Expansion with Ringville Licence Grant

Post-quarter, Stellar secured the Ringville Exploration Licence adjoining the Renison Tin Mine mining lease, expanding its East Renison Project footprint. Ringville covers key geological structures like the Federal-Bassett Fault and Pine Hill Granite, known to control tin mineralisation in the district. Historical drilling within Ringville recorded high-grade tin intercepts, including 1.5 metres at 6.9% tin. Combined with the adjacent Concert Creek licence, the expanded landholding offers promising exploration upside, with ground surveys and drilling planned for 2027.

Market Dynamics and Outlook

Stellar’s progress comes amid a robust tin price environment driven by growing demand for tin in AI and data centre technologies, sectors expected to triple tin consumption by 2030. Despite some price volatility and market corrections in late June, global supply remains constrained due to regulatory pressures and crackdowns on illegal mining, particularly in Indonesia. This supply-demand imbalance underpins Stellar’s timing as it advances from explorer to developer in a critical metals market.