Stellar Resources Ltd (ASX:SRZ) is trading higher on observing a 38.6-metre zone of sulphides with zinc, lead and copper mineralisation in an exploration drill hole at the North Scamander Project in northeast Tasmania.
The zone intersected in hole NSD005 contains sphalerite, galena, chalcopyrite and associated pyrite hosted in massive veins, semi-massive veins, hydrothermal breccia and associated stringer-style veins.
Stellar also observed a second, less significant zone of breccia and stringer mineralisation extending over 17.7 metres from 223 metres downhole.
Investors have responded positively with shares as much as 40% higher intraday to $0.014.
Awaiting assays
While encouraged by the visual observations, the company is awaiting assay results for confirmation and these are expected to begin rolling in from mid-August 2023.
This hole began in late May and reached a depth of 360 metres on June 23 with a planned end-of-hole depth of 750 metres.
“Very encouraging”
Executive director Gary Fietz said: “The significant zinc-lead-copper mineralised zone intersected to date from 131.2 metres to 169.8 metres in the upper part of our first exploration drill hole at North Scamander is very encouraging.
“This is interpreted as being the top of a metal-rich hydrothermal system which may exist at depth which is the main drilling target as the hole continues to a target depth of 750 metres.”
The zones intersected in NSD005 are interpreted by Stellar as being separate from zinc-lead-copper-silver-tin mineralised breccia-hosted intersections in historic drilling, highlighting the presence of a new mineralised zone.
A Tasmanian Government Exploration Drilling Grant Initiative (EDGI) grant of $70,000 has been awarded to co-fund direct drilling costs of this hole.
Severn program completed
Meanwhile, over at Severn deposit within the Heemskirk Tin Project in western Tasmania, the company has completed a phase 2B infill drilling program of nine holes for a total of 4,022 metres.
Drilling of the final hole, ZS163 over 443.7 metres, was completed in mid-June with logging and sampling underway.
This program focused on following wide, high-grade areas of the Severn deposit with the aim of increasing the indicated mineral resource.
Results of the final five Phase 2B holes are expected over the next two months and these will be incorporated into an updated mineral resource estimate (MRE) scheduled for late August.
Updated resource scheduled
Stellar is confident that this will build on the success of the November 24, 2022, MRE that increased the Heemskirk Project indicated resource by 24%.
The Phase 2B drilling program results and MRE update are expected to support a pre-feasibility study (PFS) on the Heemskirk Tin Project planned for the second half of this year.
“The recent completion of drilling of the Phase 2B Program holes at Severn marks a major milestone with results for the final five holes of the program expected progressively over the coming months,” Fietz said.
“Results from the Severn Phase 2B Program are expected to contribute to increasing the Severn indicated mineral resource with an update of the Heemskirk Tin Project mineral resource estimate scheduled for late August when all the results are available.”