Stellar Resources hits tin mineralisation at Heemskirk
Stellar's (ASX:SZR) share price up 5% in early afternoon trades
Source: iStock
Mentioned
KEY POINTS
- Stellar Resources has seen its share price rise 5% in early afternoon trades on fresh tin assay results
- Company has logged its second-best result from over 50 drillholes at the Heemskirk Project at the Severn target
- Stellar to upgrade its resource estimate in October; launch scoping study in November
Stellar Resources (ASX:SRZ) has reported solid assay results from the latest core samples at its Tasmanian Heemskirk Tin project.
The market has responded positively to assay results for two Severn prospect infill drillholes (ZS148 and ZS149 respectively) with Stellar’s share price enjoying a 5% increase.
Of 50 intercepts retrieved from the project, Stellar reports today’s results reflect the second-best grade results logged so far.
Intercepts retrieved provide evidence for thicker and deeper zones of mineralisation than logged in current resource estimates.
A map locating drillholes at the Severn target acreage with underlying magnetics data
Resource update coming in October
Stellar Resources has a busy second half of 2022 in advancing the Heemskirk project forward.
A mineral resource update for the Severn prospect is to be commenced in October this year with a larger mining study to be completed at the same time.
New capital and operation costs will be estimated in October, preceding a scoping study to be conducted in November 2022.
Sound cash position
Stellar reported cash on hand of over $3m at the end of the March quarter, compared to a market cap under $18m.
The company spent $720k in the 2021 FY and has spent $900k YTD in 2022.
It is likely the scoping study will see an increase in operational expenditures.
What did Stellar find at Heemskirk?
Assay results for cores extracted from the two Severn drillholes are as follows:
ZS148
34.9m @ 1.01% tin from 333m depth
8.6m @ 1.66% tin from 333m depth
12.7m @ 1.19% tin from 355m depth
ZS149
5m @ 0.73% tin from 372m depth
2.1m @ 1.80% tin from 391m depth
For comparison: Australia’s largest tin producer, Metals X (ASX:MLX), boasts a world-class tin mine with a grade of 1.61% across its total estimated tonnage.
