Stellar expands Heemskirk resource as Severn extensions emerge

Heemskirk resource reaches 115.3kt of contained tin

Stellar Resources Limited (ASX:SRZ) has spent the quarter turning a larger geological inventory into a more substantial development proposition. The company’s Heemskirk Tin Project now contains 13.36 million tonnes at 0.86% tin, or 115.3kt of contained tin, representing a 67% increase in total mineral resources since 2023.

The biggest change came at Severn, where the updated estimate lifted the total resource by 64% to 8.54Mt at 0.82% tin. More importantly for future mine planning, the Indicated Resource rose 125% to 6.05Mt at 0.84% tin, containing 50,739 tonnes of tin. Indicated material is generally supported by more detailed geological evidence than Inferred material, although the estimate remains a Mineral Resource rather than an Ore Reserve or production guarantee.

Including the nearby St Dizier satellite deposit, Stellar’s broader project inventory reaches 15.6Mt at 0.83% tin and 129.1kt of contained tin. The company says St Dizier is not currently included in the Heemskirk prefeasibility study, with further studies and drilling deferred until after mining at Heemskirk has commenced.

Severn drilling tests a possible link with Montana

The next question is whether the resource can grow along the trend between Severn and Montana. A post-quarter result from hole ZM194 returned 3.9 metres at 0.82% tin from 206.1 metres, including 2.1 metres at 1.40% tin, followed by 3.7 metres at 0.41% tin, including 0.9 metres at 1.39% tin. The intersections sit outside the current Severn resource and at relatively shallow depths along the trend towards Montana.

The result extends the thread covered in Stellar’s Severn-Montana drilling results, where the company had reported mineralisation north of Severn but cautioned that any resource or production increase remained unconfirmed. Stellar is now drilling follow-up hole ZS197 below ZM194, while a second rig is testing targets north of Montana near the historic Donnellys workings.

At depth, wedge hole ZS187W3A has reached 850 metres below the Severn resource, with assays pending. The hole was aimed towards historical drilling that returned narrow, high-grade tin zones, including an interval of 1.1 metres at 2.24% tin. These results could inform later resource work, but they are not yet part of the current estimate.

Prefeasibility study weighs larger mine configurations

Stellar’s prefeasibility work is moving beyond a simple assessment of the existing resource. Engineering teams are comparing a standalone operation with options that could use nearby infrastructure, while mine scheduling studies are testing whether the Severn extensions and Montana could support a larger production profile. The PFS is now targeted for completion in the first half of 2027.

The company is also continuing preliminary, non-binding discussions with potential offtake groups about concentrate specifications and requirements. That is an early commercial step rather than a contracted revenue stream, and the project remains pre-production: the quarter recorded $1.618 million of exploration and evaluation expenditure and no mining production or development activity.

Ringville adds a second Tasmanian exploration front

Stellar also secured the five-year Ringville exploration licence beside the Renison Tin Mine during the quarter. Ringville and the adjoining Concert Creek licence form the East Renison Project, covering structures associated with the Federal-Bassett Fault and the tin-bearing Pine Hill Granite. Historical drilling at Ringville included 1.5 metres at 6.9% tin and 3 metres at 1.5% tin, but those historical intersections do not establish a current resource.

The company plans electromagnetic work and drilling across Concert Creek and Ringville, with initial drilling at Concert Creek planned for the coming summer season and Ringville work progressing towards a 2027 programme. The licence builds on the Ringville exploration expansion, which identified the area’s historical workings and structural links to Renison.

Cash position supports near-term work

Stellar reported $28.3 million in cash and term deposits at 30 September, including $24 million held in deposits with maturities longer than three months but available to the company on call. The Appendix 5B separately showed $4.307 million in cash and cash equivalents, with quarterly net operating cash use of $2.082 million and no drawn debt.

Tin prices provided a favourable backdrop during the period: LME spot prices moved from US$51,150 a tonne in early July to US$56,500 in early August before ending September just above US$54,000. Exchange inventories fell almost 48% to about 4,480 tonnes. For Stellar, the more immediate test is whether the stronger resource base and new drilling can translate into a credible development case before the cash balance, study work and exploration ambitions begin competing for priority.