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Stellar gets positive results at Heemskirk

24th July 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – A prefeasibility study into ASX-listed Stellar Resources’ Heemskirk tin project, in Tasmania, has suggested that a capital investment of $114-million would be needed to support yearly production of 4 327 t of tin in concentrate.

The expected yearly production was an 11% increase on the scoping study findings as the mining plan increased the head grade to 1.06% tin, from the scoping study estimate of 0.93% tin.

The project was estimated to have an initial mine life of seven years, with the possibility of expanding this once additional drilling within the current Severn resource was completed.

At the base case, the Heemskirk project was expected to have a net present value of A$61-million, at a tin price of $25 500/t.

“Completion of the prefeasibility study is a significant milestone for the Heemskirk tin project. It demonstrates technical and financial viability using consensus tin price and exchange rate assumptions,” said Stellar CEO Peter Blight.

He noted that mine gate cash production costs of $14 389/t was competitive, while capital costs estimates benefited from ready access to existing infrastructure.

“Importantly, multiple ore sources provide significant flexibility and have allowed a focus on grade to maximise net present value. Following the 3.7-year payback period, and given all mineralised zones are open at depth, a focus on mine life could see an extension well beyond the initial seven years,” said Blight.

Stellar would now look at reducing the capital demands for the projects by investigating alternatives, including the use of other suitable processing plants in the area, and would look for a partner to help progress the project through its definitive-feasibility-study and development phases.

Further drilling would also be undertaken below the known deposits to expand the mineral resource, and to increase the average deposit grade.

Edited by Creamer Media Reporter

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