It’s been quite a busy year for Stellar Resources and the tin market overall, and as 2012 comes to a close there are several activity highlights we look back on.
In January 2012 Stellar secured 100% ownership of its Heemskirk project and in March a 10,000 metre drilling programme at the site began, with drilling set to continue into 2013.
The latest drilling extended the Severn deposit mineralisation 100 metres below historical drill intersections to 550 metres below surface, and a resource increase is scheduled for second quarter 2013.
In April, Stellar conducted a site visit to the Heemskirk Tin Project for investors, media and other stakeholders. Attendees were able to view the progress we have made in our tin exploration efforts and what lies in store for 2013.
So what will the new year look like for Stellar and the tin market?
We will continue diamond drilling, having exceeded the halfway mark in our 10,000m program along with ongoing metallurgical testwork for Heemskirk.
Our processing plant design and costing is already underway and our environmental baseline work is well advanced at this stage. Also, we will begin our social impact studies.
In March 2013, plans are in place to review and upgrade the resource estimate and also to upgrade our mine design and development schedule in June.
We aim to complete the preliminary feasibility study on the Heemskirk project by mid-year with mine construction scheduled in 2014 and production in 2015.
Our next international conference will be Mines & Money Hong Kong in March 2013 where we will continue to share the tin story.
Despite facing some supply and demand challenges in 2013 the tin market mean forecast for the annual average LME cash settlement tin price in 2013 is $23,400/t and the mean forecast for the annual average China domestic tin price in 2013 is RMB 162,900 yuan/t. Both of these are higher than the average prices in the year to the end of November 2012 – $20,940/t and 157,400yuan/t respectively.
The market outlook for tin is positive with a gradual strengthening tin supply and demand expected throughout the year. As new applications for tin are developed and tin continues to be used as a replacement for lead in solder, it is expected to be a good year for tin and for Stellar.
Stellar attends International Tin Research Institute (ITRI) seminar in London
Stellar Resources recently attended the International Tin Research Institute (ITRI) seminar in London, where Stellar CEO, Peter Blight, joined industry participants and tin-focused investors to hear ITRI’s latest view on the tin market outlook.
The overall outlook is positive for tin with potential growth in the use of tin as a doping agent for some structural steel and further penetration of tin solder into the lead market.
Tin is being added to improve the corrosion characteristics of steel plate used in the construction of bridges, which reduces the high costs associated with having to regularly re-paint bridges. For example, the painting of the Golden Gate Bridge is an ongoing task and a primary maintenance job as the steel needs protection from the high salt content in the air which can cause it to corrode and rust.
The increase in penetration of tin solder into the lead market has been via previously exempted areas such as medical and military uses due to tin having to establish a reliability record before it could be used in these applications. Also, China’s domestic solder market has started to lose their exemptions resulting in increased demand for tin solder.
So, as the year comes to a close, the outlook for tin is positive. In addition, a slowdown in production in Indonesia, which represents one third of the world’s tin supply, provides the opportunity for new projects to enter the industry.
The next few years appear to be the right cycle for tin with prices likely to go up. However, a caution remains to ensure that prices don’t spike and curb demand.
Click here to listen to Peter Blight’s interview with BRR following the ITRI seminar. For more information about ITRI, visit www.itri.co.uk.
Stellar Resources participated in Mines & Money London 2012 last week (December 2 – 6). As Europe’s biggest mining investment and raising event, Stellar Resources took a fresh approach in sharing its tin story.
Stellar surprised visitors to the booth with a real tin man. The tin man, or solder’s ‘new man’ was a novel approach to explaining Stellar’s Heemskirk Tin Project.
Stellar has the potential to become the second largest Australian tin producer, featuring the highest grade undeveloped tin resource in Australia, and with transport infrastructure, power and water on its doorstep.
This tin man had a heart that represented the Project, located in Tasmania, Australia.
Mines & Money bring together over 3,000 investors, financiers, brokers and senior mining executives.
For more information about Mines & Money London 2012 please visit http://www.minesandmoney.com/london/