you are correct, there is no point just drilling and drilling endlessly. However, for now I would expect Stellar will need to continue drilling. If you look at the latest resource update, the total resource has increased substantially - mainly thanks to Severn. However, Severn is all classified as Inferred at this point, and you can't convert an Inferred Resource into a Reserve. At this time, there is no Reserve. The only Indicated Resource (could convert to a Probable Reserve under the right conditions) is Queen Hill, which hasn't grown in the update (in fact it looks to have shrunk slightly - not in total, but in terms of the Indicated portion). So, I would expect more infill drilling will be required for Severn to convert to Indicated or better, and a combined Probable Reserve for Queen Hill + Severn could then be derived. However, that is down the track a little way.
They clearly have enough information now to work on the pre-feasibility and mining study, since those are underway. A positive outcome from the PFS would normally lead to a full feasibility, probably in parallel with infill drilling, and then funding and construction. So production is a way off, and more drilling is required before they can get there. All in my opinion of course.
SRZ Price at posting:
5.5¢ Sentiment: LT Buy Disclosure: Held
