srz buys 60pcent of wmt zeehan tin project

nothing that exciting:


Acquisition of 60% of Zeehan Tin Project
Stellar Resources Limited is very pleased to announce that it has signed an
agreement to acquire a 60% interest in the Zeehan Tin Project from Western
Metals Limited, Retention Licence RL 5, located near the mining town of
Zeehan in northwest Tasmania. The remaining 40% interest is held by ASX
and LSE-AIM listed Gippsland Limited.
The purchase consideration for the acquisition is $1.178m, to be satisfied by
cash and shares.
Currently these deposits represent the largest known undeveloped tin resources
in Australia.
Stellar Resources has been active on the northwest coast of Tasmania since its
inception. Exploration has confirmed a number of tin prospects, including the
St Dizier deposit, around the northern edge of the Heemskirk granite
Zeehan Tin
The Zeehan Tin Project includes the Queen Hill, Montana and Severn deposits,
which were identified by Gippsland and Aberfoyle over 25 years ago. A
substantial amount of drilling during that time by these companies allowed the
following resource estimate to be made by them (an historic mineral resource
as defined under the December 2007 JORC release):
7.3 Mt @ 0.69% Sn for 50,370 tonnes of contained tin, but importantly
3.6 Mt @ 1.2% Sn for 43,000 tonnes of contained tin was estimated in
the higher grade portions of the three known deposits.
There has been no drilling on the project over the last 25 years due mainly to
low tin prices. However, the recent recovery in the tin price to near record
levels and the lack of exploration at depth provide the opportunity to confirm
and expand the historic mineral resources.
Tin is a non toxic and thus environmentally friendly metal and is presently
experiencing improving demand and pricing.
Under the joint venture terms, Stellar has the right to increase its interest from
60% to 70% by completing a feasibility study to a banking stage. The Zeehan
Tin project is being acquired in Stellar’s 100% owned subsidiary company
Columbus Metals Limited.
For further details please contact:
Tom Burrowes Tel: (03) 9909 7618 Email: [email protected]
David Sasson Tel: (03) 9909 7618 Email: [email protected]