Confidence returning to mining in Tasmania

Mineral exploration spending remains weak in Tasmania, but Resources Minister Guy Barnett says  confidence is returning to mining.Exploration spending fell slightly to $3.2 million in the September quarter, Australian Bureau of Statistics trend terms figures showed.

HELPING HAND: Resources Minister Guy Barnett inspects core samples with Stellar Resources geologist and project manager Ray Hazeldene, at Zeehan.

HELPING HAND: Resources Minister Guy Barnett inspects core samples with Stellar Resources geologist and project manager Ray Hazeldene, at Zeehan.

That took the annual spend to $12.9 million; well down on the $16.6 million spent in the year to the end of September 2015, and less than a third of the $39.2 million spent in the year to the end of September 2013. National spending increased by 1 per cent in the quarter, seasonally adjusted.

“Confidence is returning to the Tasmanian mining industry as world commodity prices recover and companies look to progress several exciting projects,” Mr Barnett said. He said there was an air of optimism at an Australian Mines and Metals Association gathering at Strahan on Friday.

He also visited Stellar Resources Limited, which hopes to mine tin near Zeehan.

“I was pleased to speak to the local mining industry about the Liberal government’s investment in strengthening our support of this critical sector, which employs about 3000 Tasmanians,” Mr Barnett said.

“The potential is enormous, and it is great to hear that the company will now be applying for a mining lease and setting out to gain all necessary approvals,” Mr Barnett said.

“Together with PYBAR’s work to restart Henty and MMG’s announced sale of the Avebury mine, there is more and more positive news in the industry.

“Most importantly, as we are seeing at Henty, and we hope at Avebury and at potential new mines such as Stellar, this is an industry that can create direct and indirect jobs for a great many Tasmanians.”

Source: Sean Ford, The Advocate Newspaper

Stellar in Shanghai for ITRI International Tin Forum

Last month Stellar Resources attended the 2015 ITRI International Tin Forum in Shanghai, billed as the tin world’s main event of the year.

A record 300+ delegates were in attendance with Stellar at the event between 18 – 20 May, including tin miners, smelters, traders, fabricators and consumers from around the world. The Forum offered international attendees a window into the world’s largest tin market, while providing the Chinese industry with a clear view of trends in global supply, demand and prices.

During the Forum Stellar Resources gave a strong presentation informing attendees about its Heemskirk Tin Project, which is the highest grade undeveloped tin project listed on the ASX. Managing Director Peter Blight enthusiastically explained how Stellar’s project is in a premier position in Australia’s most productive tin field, and how they are poised to embark on a DFS for the Heemskirk project this year with PFS optimisation currently well underway.

ITRI also gave a formal presentation on the main day of the Forum which covered a number of the year’s principal issues, such as imports of ore and concentrates from Myanmar, technology changes in the electronics solders business and rapid growth in newer applications like lead-acid batteries.

The Forum’s key topic of interest was the unexpected increase in the 2014 tin mine production and its subsequent role in the fall in the price of tin, particularly in the second half of the year. While production increases were widespread the single biggest impact came from artisanal production in NE Myanmar.

According to the latest statistics, this production may have peaked in January of this year, however ITRI reported a continued, yet modest, increase of 5,000t year on year in 2015. Discussions at the event suggest that despite this, as high cost producers react to weak tin prices, the resultant cuts in refined production elsewhere should more than offset higher production from Myanmar.

Additional presentations at the Forum showed that demand in the tin market is looking stronger than expected, with above trend growth forecast for 2015 after a strong recovery in 2014. This is good news for developers and explorers such as Stellar Resources, who left the Forum with renewed confidence.

To view the presentation Stellar gave at the 2015 ITRI International Tin Forum, please click here.

Stellar project lights up tin market

The May edition of Paydirt reports that despite the challenges tin producers and explorers are facing in the market, many remain bullish the sector will bounce back ‘with history suggesting a tin price recovery is on the cards’.

One explorer and developer ‘prepared for the fight’ is Stellar Resources, who article author, Mark Andrews, describes as a ‘potential rising star in the game’.

Earlier this year Stellar conducted a metallurgical optimisation study at its Heemskirk Tin project in Tasmania, which revealed better tin recoveries (up 7.4% to 79.5%) from the Severn deposit were possible, while average recoveries across all deposits improved by 4.5% to 72.8%. An increase in recoveries has also boosted production potential to 4,520t, resulting in a PFS valuation for the Heemskirk Tin Project of $160 million.

Commenting on Stellar’s credentials as Australia’s best emerging tin producer, Managing Director Peter Blight said, “There is growing interest within the tin industry itself as to where the next sustainable production is going to come from. What the industry is looking for is investible projects and I think we stack up pretty well on the list.”

The article also reports on the big focus for Stellar this year; starting a DFS at Heemskirk, with Andrews suggesting “further metallurgical improvements and resulting cost optimisations will no doubt help Stellar’s pursuit for cash”, with the company looking to secure $10 million.

The Australian: Time to bang the tin drum in a tight market

In his weekend criterion column for The Australian, Tim Boreham reports that the long-awaited reduction in Indonesian tin production is a “blessed relief” for developers such as Stellar Resources.

Indonesian tin accounts for 25% of the market and there were suggestions that Indonesian producers have been mulling the decision to cut output for some months.

Last week, in a move that saw a 7% rise in the price of the “handy industrial metal”; Refined Bangka Tin, the world’s biggest tin producer, announced that it would cease production infinitely – good news for Australian tin exploration and development company Stellar Resources.

As part of his reporting Boreham goes on to reference Stellar’s 100% ownership of the Tasmanian Heemskirk project, and the assertion that it is “the highest grade undeveloped tin resource on the local bourse.”

Throughout the article Boreham’s view of the tin market was a positive one, a perspective Peter Blight, Stellar Resources Managing Director, is very much in agreement with; adding that it is “in much better shape than the price suggests.”

The full article, including comments from Stellar Resources, can be found at: http://www.theaustralian.com.au/business/opinion/tin-miners-worth-a-look-in-a-tight-market/story-e6frg9lo-1227319357831

Stellar results from Severn Metallurgical Optimisation program

Stellar Resources is pleased to announce that it has received results of the Severn Metallurgical Optimisation program from WorleyParsons for its Heemskirk Tin Project in Tasmania.

The results are extremely positive for Stellar Resources, which owns 100% of the project, and adds tangible value to the development economics. Key findings from the study, as reported by the ASX on Tuesday 24 March, include:

  • An increase in tin recovery from 72.4%, established in the PFS, to 79.5%
  • Average tin recovery across all deposits has increased by 4.5% to 72.8%
  • PFS valuation has increased by 34.2% to A$82.3m

Shortly after the results were published, Peter Blight, Managing Director of Stellar Resources, said that this was a “significant milestone for the Heemskirk project” for two reasons:

“First, these results have demonstrated a step up in recovery for Severn, the major deposit, and promises improvements for the other deposits which to date have not been tested to the same degree.

“Second, the study has found robust data for optimising design criteria and processing conditions ahead of a definitive feasibility study to commence in 2015. It’s an exciting time for Stellar Resources.

“The Severn results have also been measured against the neighbouring Renison Bell (Metals X) tin processing plant when it was in its prime, and stack-up extremely well – an outcome that reinforces our view that there is much more upside to be harnessed at Heemskirk.”

Proactive Investors Australia has also reported how this result is a significant milestone for Stellar Resources. Its recent article informs readers that key advances made by Stellar in the process circuit include elimination of heavy media separation; increase in primary grind size; and optimisation of the sulphide float circuit, which reduces tin losses to the sulphide float tail from 10.1% to 2.6%.

To read the full ASX announcement, please visit: http://stellar.synotivewebdesign.com/wp-content/uploads/2015/03/150002SRL.pdf

To read the full Proactive Investors Australia article, please visit: http://www.proactiveinvestors.com.au/companies/news/61401/stellar-resources-upgrades-severn-tin-deposit-in-tasmania-61401.html

Herald Sun: Smart Money is on Tin Mining, and Stellar has a better than even chance of making the jump to production

In his daily ‘In The Black’ column for the Herald Sun, John Beveridge argues that mining might not be the “flavour of the month” with investors, but within mining “lie some pockets of great interest”.

Beveridge reports that tin is attracting smart money, with the prospect of lower production out of Indonesia and greater use in solar panels, lithium ion batteries and to replace lead in solder. He writes: “Junior explorer Stellar Resources is highly leveraged to any improvement in the tin price with its high grade Heemskirk tin project in Tasmania showing potential to start production in a higher tin price environment by late 2017 or early 2018.”

To read the full article, including comment from Stellar Resources Managing Director Peter Blight, please visit: http://www.heraldsun.com.au/business/in-the-black/invion-aims-to-silence-dreaded-smokers-cough/story-fni0d787-1227275541411

Stellar Resources: 2014 Year In Review

As 2014 draws to a close, we reflect on the year that has passed and the broader tin market.

This year has proven to be an exciting time for Stellar Resources with several important advances for the Heemskirk Tin Project:

  • Metallurgical testing to refine and validate the processing circuit has demonstrated potential for improved recovery.
  • Diamond drilling down-plunge of the Queen Hill deposit has shown that ore-grade tin mineralisation is present at depth.
  • Work commenced on the satellite St Dizer tin prospect to determine its role in the overall project.
  • Permitting commenced with submission of a Notice of Intent to the Tasmanian Environment Protection Authority.

In addition, we won the support of a major new investor in Capetown S.A, a Luxembourg-based company with a long association with the tin industry and a desire to see Stellar take Heemskirk into production.

There are a number of tin projects in the world competing for access to a tightening tin market. BGR (German Geological Institute) has studied many of these projects and concluded that Stellar’s Heemskirk project is one of seven that are likely to be developed before 2020.

Within the global tin market, 2014 saw demand continue to recover from a low base set in 2012. However, that did not translate into higher prices as expected, due to increased supply from unreported sources in Myanmar and Indonesia. The current tin price of $20,300 per tonne is at a low point in the cycle and represents a price at which 10% of the industry is unprofitable. Supply is adjusting to the current price and should continue to adjust in 2015.

Looking forward, the common opinion from industry experts is that a gap between supply and demand will emerge and grow as depletion affects production from traditional sources. As this scenario emerges, prices are expected to rise above the US$25,000/tonne level required to encourage new production.

In 2015, Stellar Resources will continue to expand its activities around its Heemskirk Tin Project to realise its goal of becoming the second largest tin producer in Australia.

We thank you for your continued support and look forward to keeping you up to date in the New Year.

Regards,

Peter Blight
Managing Director, Stellar Resources

Stellar has plans for Zeehan tin mine

The Advocate’s Sean Ford writes of Stellar using findings from the German Federal Institute of Geosciences and Natural Resources to support the need for investments in its Heemskirk tin project. The company is expected to complete financing for the project in 2016 and start tin mining in 2017.

Article unavailable online.

City Beat: Tour de force – Rattling the tin

The Courier Mail’s James McCullough provides an account of the annual Noosa Mining & Exploration Conference. The conference was attended by 500 delegates and leading industry speakers. Despite his mocking tone, McCullough notes that the conference has growth potential. Stellar Resources’s Heemskirk Tin Project was the only tin group presenting at Noosa. According to Peter Blight, the company has a very positive outlook on its future prospects.

To read the full article, click on the link below:

http://www.couriermail.com.au/business/city-beat-tor-de-force/story-fnfli675-1226681585386