West Coast passes test for Stellar Resources SEAN FORD 13 Jun...

West Coast passes test for Stellar Resources

SEAN FORD
13 Jun 2017, 11:01 a.m.



The West Coast’s supportive community and skilled workforce are positives for a potential new tin mine, mining hopeful Stellar Resources Limited says.

Stellar also pointed to the area’s status as a “significant mining district,” the “low political risk” because of a supportive government and the established road and rail infrastructure to Burnie, plus power infrastructure and the ready availability of water.
Stellar hopes to start mining tin from its Heemskirk project near Zeehan in mid-2019, assuming a definitive feasibility study stacks up.
That is expected to be done next year, with Stellar’s timeline showing mine construction would potentially start in the last quarter of 2018.
A company presentation to a London tin industry seminar on June 1 said Heemskirk had potential to become another Renison-type tin system and had significant exploration upside.
The Renison mine on the West Coast is Australia’s biggest operational tin mine and one of the West’s major employers.
Stellar told investors its share price was yet to reflect “solid achievements” at Heemskirk.
It described it as a “stand-out, high grade resource,” and said the grade and “locational advantages” provided competitive costs in a low-risk environment.
Stellar said the tin price had bottomed and the London Metal Exchange tin price was up 50 per cent from its low in January 2016.
It said a multi-year supply deficit was expected, exchange tin stocks were at historically low levels and demand growth was returning after two years of decline.
Global production peaked in 2005 and had declined by 12 per cent by 2016.
Stellar said its strategy and timeline were focused on a low cost, fast path to production.
On May 30, Stellar reported the first results from a diamond drilling program.
It said the first of nine holes targeting the Lower Queen Hill area showed thickening of the tin mineralisation.
Managing director Peter Blight said that validated its resource model.