Midgee Uranium Project

Stellar Resources Limited, via its wholly owned subsidiary Hitaba Gold Pty Ltd, holds Exploration Licence EL 6350 over the Midgee Uranium Project on Eyre Peninsular, South Australia.

EL6350 reached the end of its initial 2 year licence term on 25 March 2021. Stellar has applied for a further 2 year renewal of EL6350 in February 2020, relinquishing the previously held 73km2 area to a retained area of 38 km2. The renewal application is currently being processed by Department for Energy and Mining, SA.

On 18th May 2021, Stellar entered into a Binding Term Sheet with Alligator Energy Limited (ASX:AGE, or “Alligator”) to sell EL6350 for a total consideration of 7,105,263AGE shares.  Key terms of the Binding Term Sheet signed between Stellar and Alligator include:

  • Stellar’s 100% owned subsidiary, Hiltaba Gold Pty Ltd has agreed to sell EL6350 to Alligator’s 100% owned subsidiary, S Uranium Pty Ltd (SUPL) for a total consideration of 7,105,263 AGE shares.
  • The transaction is subject to obtaining necessary regulatory approvals including;
    • Approval of the EL6350 renewal application lodged on 19th February 2021 by the South Australian Department for Energy and Mining (DEM), and
    • Ministerial approval of the transfer of EL6350 to SUPL.
  • The issue of Alligator shares payable to Stellar under the transaction is subject to approval by AGE shareholders at an Extraordinary General Meeting targeted to be held at the end of June 2021.
  • The transaction is also subject to Hiltaba completing all 2020/21 compliance reporting obligations to DEM which are due by 25 May 2021.
  • Alligator will assume all tenement expenditure commitments and liabilities in relation to EL6350 at the time the transaction completes and will also cover annual rentals and other costs from the date of executing the Binding Terms Sheet.

Results of the 2010 drilling on EL6350 indicate that the licence is unlikely to have the potential to support a stand-alone project and as such is a non-core asset for Stellar. Stellar will benefit from the 7.1M AGE to be paid as consideration for the transaction providing an investment exposure to the uranium sector and to Alligators exciting portfolio of projects. The sale will also result in savings to Stellar in expenditure commitments and tenement management costs for EL6350 moving forward.

The retained 38 kmarea of EL6350 under renewal application contains two geologically and physically distinct blocks: the NE Block and the SW Block

NE Block

The north east block is prospective for southern continuations of the known Plumbush sediment hosted uranium deposit (north of the EL boundary within EL 5926 held by Alligator Energy Limited). Previous rotary mud drilling completed by Stellar’s JV partner in 2010, UraniumSA Limited, intersected potentially economic sediment hosted uranium mineralisation in a number of holes within the northern part of the NE block.

Hole MRM136 provided the best result with an intersection of 7.6m at 0.041% eU3O8, including 1.4m grading 0.106% eU3O8. Hole MRM137, 800m to the east of MRM136 recorded an intersection of 5.0m grading 0.032% eU3O8. Other significant intersections included: MRM128 (2.9m grading 0.016% eU3O8), MRM127 (0.7m grading 0.039% eU3O8), and MRM138 (0.5m grading 0.014% eU3O8).

SW Block

A south-western block which is prospective for uranium and base metals mineralisation associated with the Hiltaba age Charleston granite.

EL6350 – February 2021 Renewal Application Tenement Location Map

EL6350 Midgee: NE Block 2010 USA Drilling with best intercept U3O8 grades

 

North East Tasmania Gold Exploration Project

NE Tasmania – A Continuation of Victorian Western Lachlan Fold Belt

Gold deposits in North East Tasmania lie within a continuation of the Western Lachlan Fold Belt in Victoria – one of the world’s largest orogenic gold provinces.

The Western Lachlan Fold Belt in Victoria hosts the >3 MOz Fosterville Mine, Bendigo and other Tier 1 goldfields and has produced >80 MOz gold.

NE Tasmania hosts the Beaconsfield Mine (2.3 MOz), New Golden Gate Mine (0.3 MOz) and Lefroy Goldfield (0.2MOz), along with hundreds of smaller historic gold mines and occurrences.

While Victoria is currently experiencing intense gold exploration activity, NE Tasmania has had very little modern gold exploration undertaken.

Continuation of Western Lachlan Fold Belt from Victoria into NE Tasmania

Gold deposits in NE Tasmania share the same geological setting as their Victorian counterparts:

  • Ordovician turbiditic meta-sediments (Mathinna Super-Group).
  • Ordovician to Devonian deformation and metamorphism (Western Lachlan Orogen).
  • Associated with nearby Devonian granitoid intrusives.
  • Gold commonly in quartz veins occupying dilational zones along large- scale faults related to folding and deformation during the Lachlan Orogen.
  • Predominantly NW oriented lodes controlled by regional structures and rheological contrasts between sedimentary units.
  • Intrusion Related Gold System (IRSG) deposits also occur in NE Tasmania.

Timing of Geological Events in NE Tasmania vs Melbourne and Bendigo Zone of Western Lachlan Fold Belt in Victoria (after Bierlein et al, 2005)

NE Tasmania Exploration Licence Applications

Stellar has 12 first-in-time Exploration Licence Applications (ELAs) covering an area of 2,534 km2 in NE Tasmania which is highly prospective for Victorian-style and IRGS gold exploration and contains ~77 recorded historic gold occurrences and 25 recorded historic tin occurrences:

  • 10 first-in-time ELAs were registered in September 2020 covering an area of 2,295 km2. These are expected to be granted by the end of June 2021.
  • 2 first-in-time ELAs were registered in March 2021 covering an area of 240 km2. These are expected to be granted later in 2021.

Stellar ELA’s, NE Tasmania Geology and Mineral Occurrences

NE Tasmania Gold Exploration Targets

Numerous gold exploration targets have been identified within Stellar’s ELA’s areas based on the following targeting criteria:

  • Ordovician turbiditic meta-sediments (Mathinna Super-Group)
  • Ordovician to Devonian deformation and metamorphism (Western Lachlan Orogen)
  • Devonian granitoid intrusives nearby
  • Predominantly NW Regional scale structural trends/lineaments identified in aeromagnetic and gravity surveys and corresponding mapped faults. Intersecting NE trends/faults also identified in some of the ELA’s
  • Intrusive Related Gold Style (IRSG) targets identified from aeromagnetic surveys on some ELA’s
  • Location of recorded gold (and tin) occurrences
  • Ground open for application

A number of desktop orogenic and IRGS gold exploration targets have already been identified using full GIS targeting capability developed by Stellar’s technical team including; recently reprocessed aeromagnetic, radiometric and gravity data, geology, recorded gold and tin occurrences, historic drilling and geochemical data. A summary of the gold exploration targets within each of Stellar’s 12 NE Tasmania ELA’s is shown in the table below.

Summary of Stellar NE Tasmania ELA Gold Targets

Proposed Exploration Program

NE Tasmania Gold Exploration Project – Proposed Work Program Summary