Stellar Resources has reported strong tin intercepts from two new drill holes at its Heemskirk project.
Heemskirk is formed of multiple tin deposits, the largest of which – Severn – has seen significant drilling over the last two years. The current “Phase 2A” drill programme aims to increase the Indicated Mineral Resource at Severn.
Despite strong results released just last month, results from the most recent assays “rank among the best intercepts ever recorded at Severn”, according to Executive Director, Gary Fietz. Hole ZS150 returned 36.6m at 1.07% Sn, surpassing the recently announced ZS148 as the second-best intercept recorded at the deposit. Hole ZS151 returned 51.6m at 0.44% Sn, including 5.7m at 0.71% Sn and 3.2m at 1.91% Sn, making it the second widest significant intercept at Severn.
These new drill holes, in conjunction with the recently announced ZS148 hole, add confidence to Stellar’s view that it will be able to significantly expand the Indicated Resource at Heemskirk. ZS151 returned higher Sn% x thickness results than recorded in the current Resource model, which could see the grade improved.
Stellar Resources has now completed most of its Phase 2A drilling programme. Two further drill holes are underway in the programme, with assays expected after August. One of these holes (ZS152) will test a large target to the south of Severn that was identified by geophysical techniques. Stellar hopes that this will return strong tin results to prompt further drilling and resource expansion at Heemskirk.
Once Phase 2A is completed, Stellar plans to update the Mineral Resource Estimate at Severn. If the company can return a larger resource, a new mining study, including revised project capital and operating cost estimates, will be completed. This work should be completed in October, before feeding into a Scoping Study in November.
Our view: These strong drill results will increase Stellar’s confidence in an improved Mineral Resource Estimate later this year. Phase 2A appears likely to expand the Indicated category, while holes ZS143, ZS143W, and ZS140 have potential to expand the over resource further. An updated Scoping Study for Heemskirk would be welcomed; the last was released in 2019, but the tin market has changed significantly since then. Stellar is then planning to complete Phase 2B of drilling to further extend the Indicated Resource at Heemskirk, with a Pre-Feasibility Study pencilled in for some time in 2023.