Name and Location
Heemskirk Tin project, Tasmania.

Client
Stellar Resources.

Project Description
Heemskirk Tin has a total resource of 6.28-million tonnes, grading 1.14% tin.

A positive prefeasibility study (PFS) on the Heemskirk Tin has demonstrated the technical and economic viability of the project.

The PFS is based on a 600 000 t/y under-ground mining operation at Heemskirk, with an initial mine life of seven years and the potential to expand once additional drilling within the current Severn resource is complete.

Mining will be undertaken on four orebodies – Upper and Lower Queen Hill, Severn and Montana.

Mining will be a combination of long-hole open stoping and cut-and-fill methods.

Processing will be at a rate of 600 000 t/y for all orebodies except Lower Queen Hill, which will be processed at an estimated 460 000 t/y. There is lower throughput when treating Lower Queen Hill ore because the ore is not amenable to preconcentration by heavy-media separation of barren gangue prior to conventional treatment.

Net Present Value/Internal Rate of Return
A metallurgical optimisation upgrade at the Heemskirk tin project has resulted in a 34.2% increase in the project’s net present value (NPV).

The 2013 PFS had estimated that a $113.9-million investment would be required to support production of 4 327 t/y of tin-in-concentrate. At the time, the project was estimated to have a NPV of A$61-million, at a tin price of $25 500/t.

Value
Total preproduction capital is estimated at $113.9-million.

Duration
Not stated.

Latest Developments
Optimistation studies have increased tin recovery by 4.5% to 72.8% across all of the Heemskirk deposits, and more specifically by 7.4% to 79.5% at the Severn deposit, increasing tin-in-concentrate production to 4 520 t/y, and increasing the project’s valuation to A$82.3-million.

“This is a significant milestone for the Heemskirk project for two reasons; firstly, it has demonstrated a step-up in recovery for Severn, the major deposit, and promises improvements for the other deposits, which to date have not been tested to the same degree,” says Stellar MD Peter Blight.

“Secondly, it has provided robust data for optimising design criteria and processing conditions ahead of a definitive feasibility study (DFS) to commence in 2015.”

Stellar will conduct an assessment of the operating and capital cost implications of the Severn results, and will apply lessons learnt at this deposit to other ore sources.

The company will also conduct pilot testing to support a DFS, as well as further variability testing.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Stellar resources, tel +61 3 9618 2540 or fax +61 3 9649 7200.