Key takeaways - Annual production of 4,327 tonnes of tin in concentrate represents an 11% increase from the scoping study estimate
- Competitive direct mining and processing cash costs of US$12,268/t of tin in concentrate and mine gate cash operating cost of US$14,389/t including mine and plant business sustaining expenditure and corporate overheads.
- Initial mine life of 7 years with potential to expand once additional drilling within the current resource is complete
- Mining plan increases head grade to 1.06% tin from scoping study estimate of 0.93%. Under the base case scenario, Heemskirk Tin generates a net present value of $61 million or $0.27 per share. This rises by 67% to A$102 million, or $0.45 per share, if tin prices rise by 10% to US$28,050 per tonne. Stellar will identify a in industry participant to help progress the project through Definitive Feasibility Study and into development as well as commit to a DFS as soon as possible.
Over the next 12 months, Stellar plans to drill around and below the known deposits with the objective of expanding the Resource. All deposits are open laterally and at depth.
The company will also carry out additional drilling into the lower Severn as an increase in average deposit grade could transfer 1 million tonnes from the Resource to Mining Inventory.
Major conclusions technically and economically viable, head rate tin in concentrate second only to Renision bell mine. Three tin deposits focusing. Drilling around and below the known resource all open at depth.
The company will also carry out additional drilling into the lower Severn as an increase in average deposit grade could transfer 1 million tonnes from the Resource to Mining Inventory.
Plans to use existing Processing plant in the area. Identification of industry partner into project “quite a lot going on that regard”. -- No major surprises though the 11% increase inconcentrate is nice as well as the plan to drill in the lower Severn and elsewhere leading to hopefully more upgrades.
The conclusion that Heemskirk is economically and technically viable is no surprise to anyone who has been following the development s there.
Maybe the biggest plus is that Stellar is now seriously looking for a “industry partner” to help them progress the DFS and further on and “quite a lot is going on in that regard”.
This should mean doing a deal with the likes of Yunnan tin, Malaysia smelting or one of the other heavy hitters rather than doing some cobbled together deal involving private investors.
If Stellar want to be taken seriously this is the obvious way to go.
SRZ Price at posting:
5.0¢ Sentiment: LT Buy Disclosure: Not Held
