Seeking Alpha

Proactive Investor's  Instablog

Proactive Investor
Send Message
Proactiveinvestors is a leading multimedia news organization, investor portal and events management business with offices in New York, Sydney, Toronto and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of... More
My company:
Proactiveinvestors
My blog:
Proactiveinvestors
  • Stellar Resources Logs 49% Increase In Tin Resource, Pre-Feasibility Beckons 0 comments
    Feb 19, 2013 12:47 AM

    Stellar Resources (ASX: SRZ) has conducted a successful drilling campaign over the past year, which has resulted in a 49% increase in contained tin to 71,500 tonnes, and another important outcome from the upgrade was a 3% increase in average grade to 1.14% tin.

    Heemskirk is strategically located in a well-known tin district, and is located just 18 kilometres form the producing Renison Bell mine which has been operating for 60 years.

    Highlighting the potential for Stellar in the area, geological comparison between the Heemskirk deposits and Renison Bell shows many similarities.

    The full JORC Resources is now an Indicated and Inferred Mineral Resource of 6.28 million tonnes at 1.14% tin from 4.36 million tonnes at 1.10%, and was prepared by Resource and Exploration Geology.

    Putting this into perspective, Heemskirk remains the highest grade undeveloped tin resource of ASX listed tin explorers and developers, and remains one of the highest grade undeveloped tin resources in the world.

    The substantial increase in Resources will potentially result in a longer mine life and thereby enhance project economics. Greater geological consistency and deposit widths that have been demonstrated should enhance future mine planning.

    Another plus is that the results should enhance the Pre-Feasibility Study, which Stellar forecasts to be completed by the end of June 2013. GR Engineering is completing processing plant and surface infrastructure studies and Mining One was recently appointed to prepare a
    mining study.

    Peter Blight, chief executive officer, commented on the upgrade: "I am excited by the increased resource delivered by our diamond drilling over the last 12 months.

    "A substantial part of the increase is in the Severn deposit where just eighteen diamond drill holes demonstrated multiples zones of tin mineralisation and good geological continuity between holes."

    Adding to the future exploration potential, the Severn and Queen Hill deposits are open to the north and all are open at depth in the untested area of convergence between the three deposits.

    Blight added, "A comparison with other ASX listed tin projects shows that Heemskirk is well positioned to be a significant future player in the tin mining business."

    Stellar had $3.4 million in cash at the end of December 2012.

    Mineral resource background

    The Resource estimate is based on 100 historic diamond drill holes totalling 25,537 metres and 35 recent holes drilled by Stellar for 10,429 metres.

    The Heemskirk Tin deposits are steeply dipping and moderately plunging tabular bodies that are delineated over an area of 600 metres by 500 metres and to a depth of 500 metres in the case of the Severn deposit and 300 metres for Queen Hill and Montana.

    Tin occurs as cassiterite associated with pyrite and pyrrhotite stock‐work and replacement style mineralisation in Precambrian and Cambrian sediments and volcaniclastics. The stratabound mineralisation is structurally controlled on fold or fault related dilation zones.

    Analysis

    The 49% rise in contained tin is a stellar result. Heemskirk is still the highest grade undeveloped tin resource amongst the ASX listed tin explorers and developers.

    Apart from the high grade nature of Heemskirk tin, it is also moving up the tonnage scale with potential for further resource expansion as all deposits are open.

    There are catalysts for valuation increases for Stellar with a pre‐feasibility study at Heemskirk underway. Mining One was recently appointed to prepare a mining study. The completion date for these studies is the end of June 2013.

    Underlying the increased resource the tin price has continued to impress rallying to around US$24,000 a tonne which has expanded the value of the resource.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

Back To Proactive Investor's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.