Stellar Resources Limited · ASX:SRZ

Stellar Resources — Investor Presentation (September 2013)

28 slides from Stellar Resources's investor presentation, Sep 17, 2013

  1. Slide 1: Heemskirk Tin Project - Tasmania

    For personal use only Heemskirk Tin Project - Tasmania CEO: Peter Blight September 2013 ASX: SRZ www.stellarresources.com.au

  2. Slide 2: Agenda

    Agenda For personal use only  Company Overview  Tin market update  Achievements on $10 million  Targets for the next $3 million  Relative Valuation 2

  3. Slide 3: Corporate Snapshot

    Corporate Snapshot For personal use only ASX Code SRZ (listed April 2005) Shares on Issue 223.4M Share Price 5.6c (12 month range: 4-16c) Market Capitalisation $13M Cash $2.2M (Jun 13) Investments $0.2M Ownership Structure Board & Management Top 20 60.6% Phil Harman Non-Exec Chairman S Bunnenberg 18

  4. Slide 4: Tin consumers need new mines

    Tin consumers need new mines For personal use only  Alluvial supply less reliable and facing rising costs  Concentrate shortage for several years  Security of supply a major issue for end-users  New supply to come from hard rock mines  Hard rock mines provide greater certainty of supply  Incen

  5. Slide 5: Great Location

    Great Location For personal use only  100% owned Heemskirk tin project  100% owned St Dizier tin deposit  Significant mining district  Easy access to water & power  Sealed road between both deposits  Rail & road connects to Burnie Port  18km from Australia’s largest tin mine - Renison Bell 5

  6. Slide 6: Significant Achievements at Low Cost

    Significant Achievements at Low Cost For personal use only Outcomes achieved on $10 million of project spending to date  Maximised tin price leverage by moving to 100% ownership.  Increased resource by 49% to 71,500t contained tin worth $1.6bn.  High grade intersections – best of 7m@4% tin in ZS1

  7. Slide 7: Increased JORC Mineral Resource

    Increased JORC Mineral Resource For personal use only  49% increase in contained tin to 71,500 tonnes (from 48,000 tonnes)  Resource risk reduced through greater geological consistency Classification Deposit Tonnes Grade Contained Tin millions % tin tonnes Indicated All 1.41 1.26 17,790 Inferred A

  8. Slide 8: Grade and tonnage rising

    Grade and tonnage rising For personal use only Heemskirk: highest grade undeveloped ASX listed tin resource 2.00 1.75 Renison Bell MLX 50% 1.50 Tin Grade % Heemskirk SRZ 100% 1.25 1.00 2011 2013 Achmmach MGT 83.5% KAS 100% 0.75 Mt Lindsay 0.50 Mt Garnet Rentails VMS 100% CSD 100% MLX 50% 0.25 Tarong

  9. Slide 9: High grade intersections – ZS113

    High grade intersections – ZS113 For personal use only 9

  10. Slide 10: Demonstrated recovery – further optimisation planned

    Demonstrated recovery – further optimisation planned For personal use only  ALS AMMTEC testing typical high sulphide tin flow-sheet - similar circuit to Renison Bell mill.  More than 98% of tin present as tin oxide mineral cassiterite.  Rejection of 20% ROM with heavy liquids provides potential f

  11. Slide 11: Competitive mine gate costs

    Competitive mine gate costs Mine gate cash cost of US$14,389/t is 42% below industry marginal cost For personal use only Marginal Cost of Production US$25,000/t Heemskirk Cash Cost US$14,389/t 11 Cash cost estimates are used with permission from ITRI

  12. Slide 12: PFS shows economic viability

    PFS shows economic viability For personal use only Description Economic Outputs Tin price scenarios -10% Base Case +10% LME tin price US$/t 22,950 25,500 28,050 NPV 8% A$M 11 61 103 IRR % 10 19 26 Payback years 4.7 3.7 3.1 Operating margin A$/t ore treated 51 70 86 Total cash surplus A$M 77 152 215

  13. Slide 13: Next step – adding value for $3 million

    Next step – adding value for $3 million For personal use only  3 diamond drill holes targeting high grade at Severn  2 diamond drill holes targeting gap between Severn and Montana  3 diamond drill holes to extend high grade Lower Queen Hill  3 diamond drill holes targeting near surface mineralis

  14. Slide 14: Severn/Montana drill targets

    Severn/Montana drill targets For personal use only 14

  15. Slide 15: Queen Hill drill targets

    Queen Hill drill targets For personal use only 15

  16. Slide 16: St Dizier – outcropping tin target

    St Dizier – outcropping tin target 2.5 km of tin mineralised skarn For personal use only 16

  17. Slide 17: Target area: 1km to granite source

    Target area: 1km to granite source For personal use only 17

  18. Slide 18: Heemskirk: The Next Renison?

    Heemskirk: The Next Renison? For personal use only Deepest drilling at Heemskirk 500m Area 4 Grades >3.0% tin 18

  19. Slide 19: Heemskirk can get much bigger

    Heemskirk can get much bigger For personal use only  Average drilling depth just 350 metres – deepest holes 500 metres – considerable room for discoveries at depth  All deposits remain open  Montana @1.9% tin shows potential for high grade discoveries  Rension Bell, 18 km to northeast, is the be

  20. Slide 20: Stellar undervalued relative to peers

    Stellar undervalued relative to peers For personal use only 700 Enterprise value per tonne tin resource 600 500 400 300 200 100 0 ANW SRZ CSD VMS KAS MLX 20

  21. Slide 21: Disclaimer

    Disclaimer For personal use only Forward Looking Statement This presentation may contain a number of forward-looking statements. Known and unknown risks and uncertainties, and factors outside of Stellar’s control, may cause the actual results, performance and achievements of Stellar to differ materi

  22. Slide 22: Stellar Resources Limited

    Stellar Resources Limited Level 17, 530 Collins Street For personal use only Melbourne VIC 3000 Phone +61 3 9618 2540 Fax +61 3 9649 7200 www.stellarresources.com.au 22

  23. Slide 23: APPENDICES – PFS Result

    APPENDICES – PFS Result For personal use only 23

  24. Slide 24: Preliminary feasibility completed

    Preliminary feasibility completed For personal use only  Production scheduling: Mining One Pty Ltd  Geotech and mine design: Mining One Pty Ltd  Metallurgy: Asther Pty Ltd and ALS AMMTEC  Plant engineering and infrastructure: GR Engineering Pty Ltd  Environmental: J Miedecke & Partners Pty Ltd

  25. Slide 25: PFS technical and cost summary

    PFS technical and cost summary For personal use only Description Units Value Mining inventory Mt 3.95 Mined ore tin grade % tin 1.06 Average Mill Throughput Mtpa 0.6 Initial mine life Years 6.75 Tin recovery % 70 Average concentrate grade % 48 Average tin in concentrate production tpa 4,327 Mine gat

  26. Slide 26: PFS underground mine plan

    PFS underground mine plan For personal use only Queen Hill Long Hole Stoping Montana Long Hole Stoping Severn Drift & Fill Severn Long Hole Stoping 26

  27. Slide 27: PFS Pre-production capital expenditure

    PFS Pre-production capital expenditure For personal use only Item US$ Million AU$ Million Mine 34.1 37.9 Process facilities including first fills and spares 68.0 75.5 Infrastructure including tailings storage facility 6.4 7.2 Owners costs 1.4 1.5 Contingencies 4.0 4.5 Total project pre-production ca

  28. Slide 28: PFS life of mine cash operating costs

    PFS life of mine cash operating costs For personal use only Item US$/t tin in conc AU$/t ore Mining 8,137 65.2 Processing 4,131 33.1 Direct Cash Cost (mining+processing) 12,268 98.3 Mine sustaining 1,735 13.9 Site sustaining 175 1.4 Corporate overheads 212 1.7 Total mine gate operating cost 14,389 1

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