Monday, 25 July 2011

Stellar Resources high grade silver, lead and zinc hits have potential to enhance Heemskirk

Stellar Resources (ASX: SRZ) strong tin hits are continuing at the 60% owned Heemskirk Tin Project in Tasmania.

The latest highlights from Stormsdown are; 1.0 metre at 1.28% tin from 68 metres and 1.0 metre at 0.73% tin from 94 metres, while at Montana the best intersection was 2.0 metres at 1.57% tin from 150.5 metres.

Interestingly what is adding some spice to the project are intersections of associated high grade silver, lead and zinc mineralization - which Stellar said have the potential to enhance the project.

At Stormsdown the multi-commodity highlight was 6 metres at 1.3% lead, 3.6% zinc and 40g/t silver, including the higher grade 1 metre at 4.9% lead, 3.6% zinc and 123g/t silver.

Montana returned 4 metres at 2.8% lead, 1.7% zinc and 126g/t silver.

What essentially is so important for Stellar are the latest discoveries come hot on the heels of a Scoping Study released earlier in the month which indicated strong profit margins based on tin cash costs of US$12,780 per tonne.

A projected 21% internal rate of return and 3.5 year payback at a long-term tin price of US$25,000/tonne (US$22,500/t net of treatment charges) will see Stellar immediately move to the Pre-Feasibility study to develop Heemskirk.

An annual tin production of 3,900 tonnes would rank the project second only to Metals X's (ASX: MLX) Renison Bell mine in Australia.

Stellar remains on target for a Pre-Feasibility Study at Heemskirk by mid-2012, with a Bankable Feasibility study by the end of 2012 (which would allow the company to move to 70%), with production in 2014.

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