Name of the Project
Heemskirk tin project.

Location
Heemskirk is located in north-west Tasmania within 18 km of Australia’s oldest and largest tin mine, Renison Bell.

Client
Stellar Resources.

Project Description
Heemskirk Tin has a total resource of 6.35-million tonnes grading 1.13% tin. The mineral resource comprises the Queen Hill, Severn and Montana deposits.

Stellar is planning a fast-start underground development, beginning with the Lower Queen Hill deposit and followed sequentially by the development of the Severn and Montana deposits.

Ore processing is expected to be undertaken in a standalone modular plant. This strategy also provides the opportunity to start production at a low capital cost. The modular nature of the processing plant will allow for subsequent expansion, depending on the rate of mine development.

An optimisation study completed on the project in 2015 increased tin recovery from 69.7% to 72.8%.

Average zinc in concentrate increased from 4 327 t in the 2013 prefeasibility study (PFS) to 4 527 t in the 2015 optimisation study, while the average concentrate grade decreased from 48% to 46%.

The project has an estimated 6.8-year mine life.

Jobs to be Created
Under the fast-start scenario, total direct employment in the first stage of the Heemskirk operation should comprise up to 70 people.

However, on full expansion of the mine, employment in all aspects of the operation should increase to up to 180 people.

Net Present Value/Internal Rate of Return
An optimisation study on the Heemskirk project completed in 2015 resulted in a 62% increase in the project’s projected net present value from A$61-million to A$99-million. The internal rate of return increased from 19% to 27% and the payback from 3.7 years to 3 years.

Value
Capital costs decreased from the 2013 PFS estimate of $114-million to $77.2-million in the 2015 optimisation study.

Duration
Under a fast-start strategy, it is expected that first ore production could occur within six to nine months of the start of construction of the decline.

Latest Developments
Tasmanian Resources Minister Guy Barnett has granted the Heemskirk project a mining lease, which covers 560 ha over Crown Land.

Subject to funding, Stellar plans to conduct 9 000 m of diamond drilling to convert mineral resources into an ore reserve, metallurgical testing to optimise the process flow sheet and confirm recovery/product quality, complete a development proposal and environmental management plan to achieve environmental clearance, as well as mining and plant studies to definitive feasibility study (DFS) level.

Once drilling starts, the DFS programme is expected to be completed within 15 months.

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.