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.