Stellar Resources Ltd (ASX:SRZ) welcomes the results of an updated mineral resource estimate (MRE) for its flagship Heemskirk Tin Project in western Tasmania, which points to a 16% overall increase in contained tin.
This is a result of an MRE update for the Severn deposit which now hosts 4.9 million tonnes at 1.0% tin for 46,764 tonnes of contained tin, a 29% increase.
The market responded swiftly to this news, with SRZ shares up as much as 8.33% this morning to $0.013.
Increase in contained tin
The total MRE for the Heemskirk project is now 7.6 million tonnes at 1.1% tin for 81,976 tonnes of contained tin.
What’s more, there was a 24% increase in the indicated portion of the total MRE to 2.6 million tonnes at 1.1% tin for 29,798 tonnes of contained tin.
The addition of the St Dizier Open Pit indicated MRE of 2.3 million tonnes at 0.6% tin, extends the project’s indicated MRE to 4.9 million tonnes at 0.9% tin for 43,580 tonnes of contained tin and the total MRE to 9.9 million tonnes at 1% tin for 95,768 tonnes of contained tin.
Highest-grade undeveloped tin project
The updated total MRE sees Heemskirk continue to rank as the highest-grade undeveloped tin project in Australia and third highest globally, with the increase in contained tin now also placing it in the five largest tin projects in the world, on a contained tin basis.
The updated MRE is based on seven holes at Severn completed in the Phase 1 and Phase 2A drilling programs during 2021 and 2022.
A Phase 2B infill drilling program (8 holes for roughly 3,860 million) underway at Severn is focused on further increasing the Heemskirk Tin Project indicated mineral resource, targeting high grade-thickness mineralisation areas of the Severn deposit.
Good progress is being made on the Phase 2B drilling program with two holes, ZS155 (595 metres) and ZS156 (556 metres) completed and assays pending.
The third hole (ZS157) will begin in around a week, following completion of scheduled rig maintenance.
MRE update on the horizon
A further mineral resource update will be conducted at the completion of the Phase 2B drilling program in mid-2023, prior to commencement of a pre-feasibility study planned for the second half of 2023.
Executive director Gary Fietz said: “Today’s updated Severn mineral resource not only significantly increases the total MRE but also increases the indicated mineral resource and level of confidence in the Heemskirk Tin Project.
“The Phase 2B Severn infill drilling program underway is focused on further increasing resources in the indicated category and a further MRE update is planned in mid-2023, prior to commencement of the pre-feasibility study in 2023 H2.”
Work at Severn
Seven inclined diamond holes were drilled at the Severn deposit during 2021 and 2022 as part of Stellar’s Phase 1 and Phase 2A drilling programs.
These holes have locally reduced the drill spacing which, along with previous drilling results, help support additions to the Severn indicated and inferred mineral resource in these areas.
A total of 35 recent diamond drill holes (15,378 metres), including the 2021 and 2022 drilling programs, have been drilled by Stellar at the Severn deposit since 2010.
Prior to 2010, 21 historical diamond drill holes (7,390 metres) were drilled by other companies at the deposit.