www.stellarresources.com.au
Stellar Resources (ASX: SRZ) holds two priority advanced resource projects - a major magnetite project located in South Australia and a high grade tin deposit in Tasmania - as well as a number of exploration properties targeting copper, gold, uranium and nickel.
The company's aim is to develop a minimum 5 million tonne per annum magnetite operation based on the completion of a successful feasibility study at Tarcoola iron ore project in central South Australia.
Stellar Resources hones in on milestone JORC resource at Heemskirk tin project
With tin prices at US$28,150 a tonne, there are good reasons for Stellar Resources (ASX: SRZ) to be readying for the release of a JORC compliant resource at the Heemskirk tin project in Tasmania.
Stellar appointed an independent geological consultancy for the resource estimation which is expected before the end of February 2011 following validation of historical drilling data.
Scoping studies will commence in the June quarter. Market tightness in the tin market is expected to be maintained at current or higher price levels throughout 2011 according to industry pundits providing a strong base for the scoping studies.
The company would be encouraged by the results of preliminary metallurgical test work which has shown that the traditional high sulphide tin processing circuit will work for Heemskirk tin mineralisation.
Stellar has committed to the next stage of metallurgical testing which will focus on the tin float circuit.
Results have indicated a potential recovery of 70% in a 50% tin concentrate and are comparable with tin concentrates from other projects around the world.
London Metal Exchange (LME) tin hit a record high of $28,190 a tonne yesterday, before ending the day at $28,095, up $350 from Friday's close, as supply-side constraints reinforce a bullish outlook for the metal.
According to the International Tin Research Institute (ITRI), the tin market was short by 20,000 tonnes of metal in 2010 which resulted in a substantial drawdown of LME stocks and a 60% increase in the LME price.
ITRI predicts modest growth in demand in 2011. However, it also expects little new supply to come into the market resulting in another deficit year and a further drawdown of LME stocks. Such a scenario should result in continued strong prices.
The Heemskirk Tin Project is located north of Zeehan on Tasmania’s west coast. The location is ideal for mining given that the area is well serviced by power, water, transport, other infrastructure and mining services.
Stellar holds a 60% interest in the Heemskirk Tin Project with joint venture partner Gippsland Limited (ASX: GIP) and can increase its holding to 70% by completing a feasibility study.
