Stellar has reached a major milestone in its advancement towards production at the Heemskirk Tin Project, with results of a Pre-Feasibility Study (PFS) released this week demonstrating technical and financial viability for the project using tin price and exchange rate assumptions.
CEO Peter Blight commented, “Mine gate cash production costs of US$14,389/t are competitive and capital costs of US$114 million benefit from ready access to existing infrastructure. Importantly, multiple ore sources provide significant flexibility and have allowed a focus on grade (head grade 1.06% tin) to maximise net present value.”
Key results from the PFS include:
- Mining plan increases head grade to 1.06% tin from scoping study estimate of 0.93%,
- Annual production of 4,327 tonnes of tin in concentrate represents an 11% increase from the scoping study estimate,
- Initial mine life of 7 years with potential to expand once additional drilling within the current Severn resource is complete,
- Capital cost of US$114 million benefiting from the availability of existing infrastructure,
- Base case pre-tax NPV of A$61 million at a consensus long-term London Metal Exchange tin price of US$25,000/t and A$0.90.
The next step for Stellar will be resource expansion drilling ahead of a commitment to the Definitive Feasibility Study.
The PFS results are further detailed in the ASX announcement released on 24 July.