"An internal Scoping Study undertaken in 2015 to support the St Dizier Mining Leaseapplication has recently been updated to reflect the current tin price and currentexchange rates. All other assumptions remain the same as the 2015 study.The updated St Dizier Scoping Study valuation has resulted in a base case NPV 10%,at current tin prices (US$20,000/t), determined to an accuracy of ±35%, ofapproximately A$10.4m, an IRR of approximately 166% and a payback period ofapproximately 8 months. The project has a low capital investment estimated at A$3.8m and can be bought into production within 3 months of receiving approvalsproviding flexibility to ensure that it is developed in a supportive tin priceenvironment." Cautionary Statements follows... Stage 2 optimisation has the potential to increase tin recovery up to 50% into a 50% tin inconcentrate productA Stage 2 metallurgical testing program is a priority to advance the St Dizier project. The programrequires 5 diamond drill holes into the Central Lode to determine the extent of variability in oremineralogy. Test-work on these samples is then required and would target sulphur, talc management,desliming and concentrate dressing.In view of Stage 1 bench-scale metallurgical test-work results, the scoping study considers technicaland financial outcomes based on recoveries of 40%, 50% and 60%.The scoping study process plant operating cost assumption is A$35/t of ore. This assumption is basedon estimates for Stellar’s proposed Heemskirk Tin processing facility at Zeehan. It does not include acapital recovery charge and has not been referenced to possible third-party processing charges.The accuracy of the processing operating cost estimate is ±35%.
Heemskirk Tin ProjectStellar Resources Limited is a tin exploration and development company focused on developing its flagshipHeemskirk Tin Project and satellite tin deposits at Razorback and St Dizier in western Tasmania. Heemskirk hastwo significant competitive advantages. First, is a JORC 2012 compliant Mineral Resource of 6.4mt @ 1.13% Snwhich makes it the highest grade undeveloped tin project of significance listed on the ASX. Second is its excellentlocation within the historic west coast mining district of Tasmania and access to significant infrastructure andservices (see Figure 6
SRZ Price at posting:
1.1¢ Sentiment: Buy Disclosure: Held
