Stellar Resources (ASX:SRZ) has set the path towards early cashflow, with an inferred mineral resource at its Razorback tin mine flagged for the second half of this year.
At a glance
- Stellar has declared an initial exploration target for the Razorback tin mine in Tasmania of 180,000 – 220,000 tonnes at 0.8-1 percent tin
- The company says this deposit could provide an early source of production, and cashflow, for the company
- An Inferred Mineral Resource for the Razorback Mine has been pencilled in for the second half of this year
It told investors today that it had made the initial exploration target estimate based on 35 historic surface holes, 22 underground drillholes, and three costeans dug into the existing pit floor by Stellar last year.
Razorback is a satellite project at its Heemskirk play in Tasmania, and it’s hoped by developing resources at an existing open pit that it could provide early cashflow for the company while it chases targets elsewhere.
While it said it could have an Inferred resource at Razorback in the second half of this year, this could move to an Indicated resource and a Definitive Feasibility within 12 months should the funding be found.
Razorback isn’t the main play for Stellar, but it could prove to be one of the most important according to managing director Peter Blight.
“Redevelopment of the Razorback Mine has the potential to become an early source of tin production which the company plans to study further this year,” he said.
“This could become an important ‘stepping stone’ for Stellar, with the potential cash flow from the Razorback Mine redevelopment being used to advance the company’s flagship Heemskirk Tin Project.”
More on tin
About Stellar Resources
Stellar is a tin exploration and development company aiming to develop the Heemskirk project in Tasmania — which is the highest grade undeveloped tin deposit in Australia.
Located near the historic mining town of Zeehan in northwest Tasmania, Heemskirk benefits from ready access to transport infrastructure, power and water — and has excellent potential for resource expansion.
Stellar‘s objective is to establish Heemskirk as Australia’s second largest tin producer.
This content is produced by Star Investing in commercial partnership with Stellar Resources. This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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