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 identifies economic tin mineralisation below 2.4Mt Severn Resource, Heemskirk Project
Stellar Resources’ (ASX: SRZ) latest assay results indicate the potential for economic widths of ore grade tin mineralisation below the presently defined Severn deposit at the Heemskirk project in Tasmania.
Intersections from the latest drill hole include:
- 6 metres at 1.1% tin from 531 metres, including 1 metre at 2.2% tin;
- 1 metre at 1.2% tin from 427 metres; and
- 1 metre at 0.9% tin from 550 metres.
These results indicate that there is potential to upgrade the Inferred Resource at Severn with additional drilling.
The Inferred Resource for the Severn deposit currently stands at 2.4 million tonnes grading 0.9% tin for 23,000 tonnes of tin.
This accounts for almost half of the overall Heemskirk Resource, which is 4.36 million tonnes at 1.1% tin for 48,000 tonnes of tin.
The 6 metre intersection occurs within the main Pyrrhotite/Pyrite zone identified by previous holes, indicating the presence of ore-grade tin at depth.
Importantly, acid soluble tin grades are insignificant, suggesting that the tin-bearing mineral is casseterite, which is a positive for metallurgical processing.
Stellar CEO Peter Blight said the result continued the positive momentum generated by the 2011 drilling program.
“The results for ZS107A and ZS107 show that the Severn lode extends at depth in a well-defined structure that has the potential to host ore grade mineralisation.
“Future diamond drilling will seek to better define this structure and add to the Heemskirk resource estimate.”
Stellar Resources recently signed a sale and purchase agreement to acquire Gippsland’s (ASX: GIP) 40% interest in the Heemskirk project by issuing 43.5 million Stellar shares.
Gippsland will sell its 40% free-carried interest in the Heemskirk Tin joint venture to Stellar’s wholly owned subsidiary Columbus Metals.
This interest was to reduce to 30% upon completion of a Bankable Feasibility Study and decision to mine by Stellar, and reimbursement by Gippsland to Stellar of Gippsland’s proportion of expenditure dating back to the 1970s.
In addition to being issued the Stellar shares, Gippsland will retain net smelter return royalty over any Future tin production from the Heemskirk project.
The royalty will be triggered when the tin price reaches $25,000, at a rate of 1%, rising linearly to a maximum rate of 2% at a tin price of $30,000 and above.
