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 secures Tasmania nickel JV with China's Minmetals Resources
Stellar Resources (ASX: SRZ) has signed a joint venture agreement with MMG Exploration Pty Ltd (MMG) for MMG to farm into Stellar’s Rayne nickel exploration licence on the west coast of Tasmania.
Under the terms of the agreement with MMG, a wholly owned subsidiary of Minmetals Resources Limited (HKEX: 1208), Stellar will be free carried through various stages of exploration to complete a JORC Inferred Resource and a Scoping Study.
MMG has a significant presence on the west coast of Tasmania as the owner of the Rosebery polymetallic underground mine and Avebury nickel mine (currently on care and maintenance).
There is an intense magneticanomaly that is prospective for nickel sulphide mineralisation In the northeast corner of the Rayne exploration licence (49/20040).
The magnetic anomaly extends into MMG’s adjoining tenement to the east, which also contains nickel sulphide mineralisation at Cuni.
Peter Blight, Stellar’s CEO, said “having a partner of the calibre of MMG will progress the Rayne prospect without drawing on Stellar’s resources. This allows Stellar to remain focused on the development of its high grade Heemskirk Tin Project.”
In the first stage of exploration MMG is required to spend $150,000 and drill one hole within 12 months of registration of the agreement with no equity earned.
In stage 2 MMG can earn a 60% interest after spending $2 million (including Stage 1 spending) within 12 months of completing stage 1.
In stage 3 MMG can increase its equity to 80% after spending an additional $12 million to complete a JORC inferred resource and a Scoping Study within 4 years of completing stage 2.
Following the completion of stage 3, Stellar has the option of maintaining its 20% equity interest by funding its pro rata share of expenditure or diluting down according to a standard formula.
If Stellar’s interest should fall to 10%, it can convert this interest to a 1.5% net smelter return royalty.
Minmetals Resources, one of the largest importers and suppliers of alumina in China, is principally engaged in the manufacturing and sales of alumina, aluminium products, copper products and plica tubes.
The group also offers port logistics services and participates in other industrial operations.
Stellar Resources’ JV with Gippsland (ASX: GIP) (FRA: GIX) at the Heemskirk Tin Project in Tasmania is targeting the completion of a Scoping Study, a metallurgical update and an exploratory drilling update for the June 2011 quarter.
