Stellar Resources Limited (ASX: SRZ), a company from the materials sector that is engaged in exploring and developing tin from the Heemskirk Tin Project in Tasmania shared, investor presentation on 28 March 2019 covering Heemskirk tin project.
The presentation highlighted that the company is 100% owner of the Heemskirk Project which is located in Queen Hill, Severn, Montana and Oonah deposits. Besides, it fully owns Razorback and St Dizier Satellite deposits. It also has a large exploration license package. Within 30 km of Heemskirk project, out of five underground metal mines, three are currently operating. Port of Burnie that is located 150km towards the north provides services to the west coast mines, and it also provides access to the world markets.
The presentation highlighted that the supply of tin in tightening as the exports from Myanmar declined. Further, the production from China and Indonesia faces greater regulation. As a result of which the exchange stocks are also low. Mine development queue is very few. There is only one new mine Bisie in DRC that is under development, and there is no significant exploration occurring there. In 2018, the demand for tin was up by 2.5%. However, based on the new uses in the electronic and energy storage sectors, there is a possibility of a stronger demand for tin after 2022.
It may also be interesting to know about tin that it is ranked as the metal best placed to benefit from new technologies. Tin has multiple uses in electrical and energy storage that is easy to achieve. Tin ranks number 1 in terms of most impacted by new technology.
The mineral resource updates from Severn and Queen Hill have started recently. By Q2 of 2019, the company is targeting an increased drilling density as well as resource confidence.
In the third quarter of 2019, the company will be focusing on the funding of a reduced drilling program in order to identify the probable reserve for the project feasibility study of Heemskirk project. Further, the company expects that Mt Razorback and St Dizier has the capability to add value to the project via early production at low cost.
At present, Stellar Resources highlighted that it is refocusing on the progress of the Heemskirk Fast Start development strategy, the scoping study is expected to be completed by Q3 2019.
The Scoping study for St Dizier is completed. The sampling at Razorback Tailings is completed, and metallurgical testing is under progress. The evaluation of the Razorback resources would be declared after tailings test-work. The update on Heemskirk Resource Estimate is in progress. Heemskirk fast start scoping study will proceed after resource update and will also include St Dizier.
Heemskirk Tin Project is an underdeveloped high-grade tin project in Australia, and it ranks third highest globally. The project has a low-cost investment. The project has a significant exploration potential both vertically as well as laterally. Since, Tin is emerging as an energy metal that will be used in second-generation battery raw material, the increase in material demand which will drive opportunities for tin as well as scope for higher tin prices.
By the end of the trading session on 28 March’19, the shares of SRZ closed at A$0.015, up by 36.364% as compared to previous trading day’s closing price. Today, the shares are trading 6.7% down at A$0.014 (As at 1:05 PM AEST, 29 March’19). The company has market capitalization of A$5.7 million and ~379.71 million outstanding shares.
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