Stellar Resources Limited · ASX:SRZ

Stellar Resources — ITRI Investing in Tin Seminar 2013

25 slides from Stellar Resources's conference presentation, Nov 29, 2013

  1. Slide 1: Heemskirk Tin Project - Tasmania

    For personal use only Heemskirk Tin Project - Tasmania CEO: Peter Blight ITRI Investing in Tin Seminar November 2013 ASX: SRZ www.stellarresources.com.au

  2. Slide 2: Agenda

    Agenda For personal use only  Company Overview  Project Background  Achievements  PFS Results  Optimisation Targets  Upside Case 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 5.2c (12 month range: 4-16c) Market Capitalisation $12M Cash $1.4M (Sep 13) Investments $0.2M Ownership Structure Board & Management Top 20 60.6% Phil Harman Non-Exec Chairman Bunnenberg 18.4

  4. Slide 4: Stellar's well located tin assets

    Stellar’s well located tin assets 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 min

  5. Slide 5: Project History

    Project History For personal use only  1960s - Gippsland Ltd explored the outcropping Queen Hill tin deposit.  1970s – Aberfoyle Ltd earned a 60% interest.  1980s – Aberfoyle Ltd discovered Severn and Montana deposits.  1986 – Project suspended following the tin price collapse.  2008 – Stellar

  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.  Demonstrated presence of high grade tin – best re

  7. Slide 7: Grade and tonnage rising

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

  8. Slide 8: High grade intersections – ZS113

    High grade intersections – ZS113 For personal use only 8

  9. Slide 9: 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

  10. Slide 10: 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 10 Cash cost estimates are used with permission from ITRI

  11. Slide 11: 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

  12. Slide 12: Optimisation Targets

    Optimisation Targets For personal use only  Drilling of high grade mineralisation  Resource expansion drilling  Further metallurgical testing to improve recovery  Exploration of open pit targets at St Dizier 12

  13. Slide 13: Severn/Montana drill targets

    Severn/Montana drill targets For personal use only 13

  14. Slide 14: Queen Hill drill targets

    Queen Hill drill targets For personal use only 14

  15. Slide 15: Target area: 1km to granite source

    Target area: 1km to granite source 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: Upside potential from optimisation

    Upside potential from optimisation For personal use only  Higher grade at Severn: increasing overall head grade from 1.06% to 1.17% adds $44 million or 72% to NPV.  Resource expansion: Each additional year of life adds $13 million or 22% to NPV.  Improved metallurgical performance: increasing rec

  18. Slide 18: Stellar undervalued relative to peers

    Stellar undervalued relative to peers For personal use only 1000 Enterprise value per tonne tin resource 900 800 700 600 500 400 300 200 100 0 ANW SRZ VMS CSD KAS MLX 18

  19. Slide 19: 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

  20. Slide 20: 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 20

  21. Slide 21: APPENDICES – PFS Result

    APPENDICES – PFS Result For personal use only 21

  22. Slide 22: 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

  23. Slide 23: 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 23

  24. Slide 24: 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

  25. Slide 25: 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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