Stellar Resources accelerates Heemskirk tin project with third drill rig and key test work

Stellar Resources (ASX: SRZ) has stepped up drilling activity at its Heemskirk tin project in western Tasmania, mobilising a third drilling rig to accelerate its current 24-hole program.

To date, the company has completed seven diamond drill holes totalling 2,723 metres, with the first assays expected in November.

The approximately 9,500m campaign is focused on the Severn and Queen Hill deposits at Heemskirk, as Stellar aims to upgrade additional resources to the indicated category.

PFS study impact

Managing director Simon Taylor said the drilling results will also impact the current prefeasibility study (PFS), with sampling being undertaken as part of metallurgical and ore sorting test work.

“Work is progressing well at our flagship Heemskirk tin project and a significant infill and extensional diamond drilling program is now further accelerated with a third drill rig mobilised to site,” Mr Taylor said.

“Whilst drilling is focused on upgrading additional tonnes from the inferred to the indicated resource category, we are also excited about completing down-hole electromagnetic surveys once we have the suitable drill platforms in place to explore for extensions to expand the resource.”

“In tandem, we have sent off the first samples for both ore sorting and metallurgical test work for analysis to assist in achieving better recoveries and data to help select an appropriate plant size.”

Drilling results

Stellar expects to see the first results from the drilling program in November, while results from the ore sorting and metallurgical test work are expected in the December and March quarters.

Heemskirk is ranked as the highest-grade undeveloped tin resource in Australia and third globally, with the 2023 mineral resource estimate measured at 7.48 million tonnes at 1.04% tin.

Mr Taylor noted that the company is well funded, with $12.3 million in cash as of the end of August 2024 as it advances Heemskirk across multiple areas.

‘Spice element’

Chair of the International Tin Association Mariano Pero told an international conference earlier this year that tin is often called the “spice element” due to its widespread but little-known presence in electronics and numerous other everyday products.

He highlighted tin’s vital function in billions of electronic devices globally, cementing its importance in energy transition technologies such as electric vehicles and solar panels, as well as digital advancements including artificial intelligence.

According to industry group ARC, the tin market is estimated to grow at a compound annual rate of 4.2% and be valued at approximately $13 billion by 2030, driven by increased investments in electric vehicles and solar panels as part of the energy transition.