Ann: Change in substantial holding, page-42

They certainly knocked the share price for six , not that I am complaining since I picked up more.

This will get back over 5c with some reasonable drill results.

For the benefit of listeners historic intersections in Queens Hill where very impressive, you will see on this announcement a few years ago.

http://www.stellarresources.com.au/wp-content/uploads/2013/10/100096SRL-1.pdf

To justify the development they need to prove up 4 years reserves, or 800,000 tonnes at 1.5 %. Currently Ind and Inf on upper and lower Queens Hill are 1.5million tonnes at 1.35% . Conversion of 50% of resources to reserves is quite realistic at a grade of 1.5%.

This will translated to a recovered grade minimum 1%

or 2,000 tonnes tin pa.

I think we will do better than that, but that is the base case.

at $30,000 tin that gives EBIT of $25million  and payback 2 years.  That is bankable, but shareholders will still need to chip in 30% of CAPEX or say another $20million,

But that CR is a long way away and if things go to plan the MC will rise strongly so that todays punters will see institutions financing the CAPEX at much higher prices.

I work on 650million shares on issue finally. In production, everything going top plan a $100million MC is possible so say 15c a share.

How much more it can go up depends on the tin price. A strong bull run in tin say to AUS$40,000 could see 30c plus .

But you need top wait 2-3 years for that. When tin juniors move it is very fast. Last bull run in 2010 CSD went from 4 c to 25 c in 4 months with a peak market cap of around $40million.

In 2010 tin rose from US$15k to US$28k tops . So you see tin can rise very rapidly which will ignite the booster rockets for SRZ

In the junior market the big money is made in situations like this, you have to be very patient though .