Stellar Resources Ltd (ASX:SRZ) has added to its portfolio of Tasmanian tin properties with the recent grant of the Mount Razorback exploration licence 11/2017, which lies adjacent to the company’s Heemskirk Tin Project
The license contains the historical Razorback and Grand Prize tin mines and a tailings dam, strengthening Stellar’s position as it looks to develop the Heemskirk Project.
A processing plant was built at Mount Razorback in 1918 and was operated sporadically by different owners until the 1960s.
According to Annual Reports produced by Mineral Resources Tasmania, the mine operated from 1975 to 1978 and produced 100,352 tonnes of ore from which 153 tonnes of tin in concentrate were recovered.
Close proximity to Zeehan
Heemskirk has a mineral resource of 6.4 million tonnes at 1.13% tin, making it the highest grade undeveloped tin project of significance listed on the ASX.
Should the company be able to access ore from Mount Razorback to increase production through a central plant this could have the impact of improving the economic metrics of the Heemskirk project.
Given Stellar is aiming to complete the definitive feasibility study (DFS) and financing by mid-2018 with a view to bringing Heemskirk into production by mid-2019, this is a perfect time to identify an additional source of ore.
Razorback strategy focuses on tailings and below open pit resource
Stellar will conduct sampling and metallurgical testing of tailings at Mount Razorback which should establish whether modern processing technology can improve on historical recovery to produce a saleable product.
Initial sampling and tailings characterisation is to be completed in the March quarter of 2018.
The company will also look to identify a resource below the open pit as diamond drilling by previous title holders has shown that a resource exists below and down plunge of the open pit.
Stellar will also conduct along strike exploration as the Razorback Fault extends for more than 3 kilometres to the north and south of the mine.
Surveys by previous explorers show elevated tin in soil in the vicinity of the fault.