Stellar Resources Ltd (ASX:SRZ) is advancing its high-grade Heemskirk tin project in Tasmania in light of a 42% increase in tin prices from mid-January 2016 low.
Heemskirk is located in northwest Tasmania within 18 kilometres of Australia’s oldest and largest tin mine, Renison Bell.
The company is planning to update Heemskirk’s mineral resource of 6.28 million tonnes at 1.14% tin from JORC 2004 to JORC 2012 during the September quarter.
Since the original resource was released in 2013, Stellar has completed mining studies and metallurgical test works.
The data from these studies will contribute to an improved understanding of the resource and identify the extent of additional drilling required to define an ore reserve.
Stellar is planning to test drill core samples from the Severn, Upper and Lower Queen Hill deposits using Tomra x-ray sorting technology at Tomra’s test facility in Sydney.
If successful, Tomra technology can significantly reduce the volume of unmineralised ore treated in the processing plant and lower unit treatment cost.
Peru’s largest tin mine, San Rafael has recently installed Tomra ore sorting technology to treat a low grade surface stockpile that may otherwise have been uneconomic.
The tin price is currently trading at US$18,880 per tonne which represents a 42% gain on the mid-January 2016 low of US$13,255 per tonne.
Stellar is continuing to advance a work program to complete a ‘Development Proposal and Environmental Management Plan’, a key milestone in the development timeline for Heemskirk tin.
Mining Lease application over the Heemskirk tin deposits is also progressing through the regulatory framework.
Stellar’s share price has increased by more than 150% during the last six months, last trading at $0.043.
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