ASX-listed Stellar Resources Limited has announced reduced capital and operating costs from PFS optimisation work for its Heemskirk tin project, located on the northwest border of Zeehan in Tasmania.
In March 2015, Stellar announced a 4.5% improvement in tin recoveries to 72.8% on the basis of results from its metallurgical testing program. The optimisation has slightly increased the annual projected tin-in-concentrate production from 4,327 tonnes to 4,527 tonnes despite a fall in average concentrate grade from 48% to 45% Sn. There has also been a reduction in capital equipment prices, an optimisation of the proposed underground mining method and a reduction in mine development time from 17 to 12 months. All these factors have contributed to a 12.9% reduction in capital costs to A$ 110.3 million (US$ 77.2 million) and a smaller operating cost of A$ 21,355/t Sn (US$ 14,949), resulting in a 62% increase in project NPV to A$ 99 million.
Managing Director Peter Blight said: “This outcome capitalises on the outstanding results from the March 2015 metallurgical testing program and more recently on the benefits from mining efficiency and processing cost studies. This work has placed Stellar in a strong position to accelerate definitive feasibility drilling and studies”
The company is currently seeking funding so it can continue with project development including upgrading the Mineral Resource to an Ore Reserve, bulk metallurgical testing of ore and completion of a DFS for the project.
The full ASX-release can be found here
