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Stellar Resources Limited (ASX:SRZ) has reported a 64% increase in the Mineral Resource Estimate at its Severn deposit within the Heemskirk Tin Project in Tasmania, alongside completing a $22.1 million capital raise to support development efforts. The company now holds a combined mineral resource exceeding 129 kilotonnes of contained tin across Heemskirk and the St Dizier satellite deposit, positioning it to become a potential top 10 global tin producer. With prefeasibility study activities nearing completion and metallurgical testwork showing enhanced tin recovery rates, Stellar is set to advance development in the second half of 2026.
Key Points
- Stellar Resources Limited (ASX:SRZ) is focused on advancing its Tasmanian Heemskirk Tin Project toward production readiness.
- The updated Mineral Resource Estimate at Severn reveals a 64% increase to 8.54 million tonnes at 0.82% tin, containing 70,002 tonnes of tin metal.
- A $22.1 million capital placement was completed, including a $17 million strategic investment from Metals X Limited (ASX:MLX), with cash reserves reaching $30.1 million at the June quarter end.
- Prefeasibility study nearing completion with results expected in Q3 2026; metallurgical testwork indicates tin recovery rates exceeding 70%.
- Approval granted for the Ringville Exploration Licence adjacent to the Renison Tin Mine; ongoing exploration at Scamander Project reveals high-grade tungsten and silver.
Severn Deposit Expansion Drives Significant Resource Growth at Heemskirk Project
Stellar Resources’ latest quarterly update highlights a substantial 64% uplift in the Mineral Resource Estimate at the Severn deposit, part of the Heemskirk Tin Project. The July 2026 update, applying a 0.40% cutoff grade, reports 8.54 million tonnes grading 0.82% tin, equating to 70,002 tonnes of contained tin. The Indicated Resource category notably increased by 125% to 6.05 million tonnes at 0.84% tin, containing 50,739 tonnes of tin, reflecting enhanced geological confidence.
Combined with the broader Heemskirk holdings and St Dizier satellite deposit, Stellar’s total mineral resource inventory now exceeds 129 kilotonnes of contained tin. This expanded resource base advances the company’s goal of becoming a top 10 global tin producer. With resource drilling at Severn complete, exploration focus shifts to growth targets including the Montana deposit, depth extensions at Severn, and new prospects identified via advanced geological modelling.
Strong Drilling Results at Montana and Severn Support Future Resource Upside
June quarter drilling results confirm robust tin mineralisation across Stellar’s portfolio. At Severn, wedge hole ZS187W2C intersected 34.8 metres averaging 0.47% tin from 530.7 metres depth, including zones of 1.9 metres at 1.07% tin and 3.6 metres at 1.16% tin. Hole ZS191 also returned multiple significant tin zones, such as 4 metres at 1.78% tin and 2 metres at 1.37% tin. These findings confirm substantial tin-bearing zones at depth.
At Montana, the first drilling since 2012 yielded encouraging results, with hole ZM192 intersecting 4.7 metres grading 1.29% tin from 242.5 metres. Two drilling rigs remain active across Heemskirk, targeting extensions of known mineralisation and new exploration targets, offering potential resource growth beyond the current 129 kilotonnes contained tin.
Metallurgical Advances Indicate Over 70% Tin Recovery and Smelter-Grade Concentrate Production
ALS Metallurgy Burnie’s comprehensive testwork on Queen Hill ore indicates a clear pathway to tin recovery rates exceeding 70%, a significant improvement over previous recoveries of approximately 62.7%. The results support producing a saleable tin concentrate grading between 42% and 49% tin, meeting standard smelter requirements.
Process improvements include ore sorting technology, a gravity regrind stage, and magnetic separation, enhancing cassiterite recovery in coarse gravity circuits and reducing reliance on fine recovery. These advancements bolster the technical feasibility of Heemskirk and underpin the upcoming prefeasibility study. Stellar is also engaging with potential offtake partners regarding concentrate specifications and supply.
Prefeasibility Study Nears Completion; Owner's Study Team Established for Next Development Phase
The Heemskirk Tin Project’s prefeasibility study is nearing completion, with full results expected in Q3 2026, marking a key milestone toward development readiness. Stellar has formed an internal Owner's Study Team of experienced personnel to lead engineering and development planning.
Top-tier external consultants specializing in tin project development and commissioning have also been engaged, reflecting Stellar’s commitment to industry best practices. The prefeasibility study will deliver detailed technical and economic assessments, including capital and operating costs, production profiles, and financial forecasts. The Owner's Study Team’s progress during the June quarter signals management’s intent to advance development planning immediately after study completion.
Strategic $22.1 Million Capital Raise Includes Metals X Investment, Enhancing Funding and Board Expertise
During the June quarter, Stellar completed a $22.1 million capital placement, featuring a $17 million strategic investment from Metals X Limited (ASX:MLX) alongside cornerstone investor support. Metals X’s investment highlights strong industry confidence in Heemskirk’s development prospects. Stellar reported $30.1 million cash at quarter end to fund prefeasibility completion and early development activities.
Metals X’s investment led to the appointment of Mr Brett Smith as Non-Executive Director, bringing extensive tin project development and operational expertise. Metals X operates the nearby Renison Tin Mine, holding a 50% interest, reinforcing strategic alignment to expand tin production capacity in Tasmania.
Ringville Exploration Licence Granted Adjacent to Renison Mine Expands East Renison Project
Post-June quarter, Mineral Resources Tasmania granted Stellar the Ringville Exploration Licence (EL9/2025), adjacent to the Renison Tin Mine lease. This expands Stellar’s exploration footprint, complementing the existing Concert Creek Licence (EL29/2022) to form the East Renison Project, covering highly prospective tin-bearing geology.
Ringville encompasses the Federal-Bassett Fault continuation and related structures key to localising tin mineralisation. Underlain by Pine Hill Granite—the tin source at Renison—the licence area includes 29 historical mineral occurrences, eight with prior tin workings. Historical drilling within Ringville returned promising tin intercepts, such as 1.5 metres at 6.9% tin from 87 metres (hole GDK4) and 3.0 metres at 1.5% tin from 209 metres (hole GDK5), indicating strong discovery potential.
Scamander Project Sampling Uncovers High-Grade Tungsten, Bismuth, and Silver Prospects
Reconnaissance rock chip sampling at Stellar’s Scamander Project revealed elevated tungsten, bismuth, and silver grades, broadening the company’s exploration focus beyond tin. At Lutwyche prospect, samples showed high-grade tungsten and bismuth mineralisation, including 6.91%, 4.28%, and 4.22% WO 3, plus 0.2% bismuth, warranting further investigation.
At Scamander Bell prospect, exceptional silver grades were recorded, including 2,730 g/t, 1,410 g/t, and 1,040 g/t silver. While tin remains the primary focus, these high-grade elements offer potential diversification and alternative value creation opportunities. Multiple prospects identified will undergo detailed follow-up sampling.
Global Tin Market Fundamentals Remain Strong Amid Supply Constraints and Rising AI Demand
During Q2 2026, London Metal Exchange tin prices surged from US$45,250 per tonne in April to a peak of US$57,525 per tonne in June, closing the quarter at US$51,100 per tonne and firming above US$52,000 per tonne in early July. LME tin stockpiles remained stable compared to prior quarter inventory increases.
Analysts attribute price strength to tin’s critical role in soldering for data centre infrastructure, with AI server tin demand forecasted to triple by 2030. Despite a late June price pullback amid broader market corrections, global tin supply remains tight due to regulatory challenges and crackdowns on illegal mining in Indonesia, supporting new production development.
Heemskirk Development Pathway and Upcoming Milestones Set Stage for Production Decision
Stellar Resources has outlined a clear development trajectory for Heemskirk, with the prefeasibility study completion and release expected in Q3 2026. This study will provide in-depth technical and economic analysis covering capital expenditure, operating costs, production schedules, and financial outlooks, serving as a pivotal step toward detailed engineering and feasibility phases.
Following the prefeasibility study, the Owner’s Study Team will advance detailed engineering and development planning to prepare Heemskirk for production. The combination of resource expansion, metallurgical enhancements, strategic funding, and expert appointments underscores management’s commitment to efficiently progressing the project. Investors should watch for the prefeasibility study release and subsequent updates on financing, partnerships, or feasibility study initiation. Supported by strong tin market fundamentals and constrained supply, Heemskirk stands as a major development-stage tin project globally.
