Stellar Resources Limited · ASX:SRZ
Stellar Resources — ITRI International Tin Conference Peru 2016
22 slides from Stellar Resources's conference presentation, Apr 28, 2016
Slide 1: Heemskirk Tin Project
For personal use only Heemskirk Tin Project Highest grade undeveloped ASX-listed tin project ITRI International Tin Conference Peru April 2016 ASX: SRZ www.stellarresources.com.au
Slide 2: Agenda
Agenda For personal use only Overview of Heemskirk Tin Record of achievement over the last 12 months Optimisation - increased NPV by 62% to A$99m What are we doing now? Concluding remarks 2
Slide 3: Corporate overview
Corporate overview For personal use only 100% owner of the highest grade undeveloped ASX-listed tin project Company overview 100% owner of Heemskirk Tin Project, 150km south of Burnie, Tasmania Stand-out high grade resource (1.1% Sn) with vision to be a major Australian tin producer Metallurgi
Slide 4: Favourable project location
Favourable project location For personal use only North-west Tasmania is a world-class tin jurisdiction Significant mining district Many historical and current operating mines across various commodities Supportive local community and skilled workforce Experienced workforce available with oth
Slide 5: Record of achievement in updates
Record of achievement in updates For personal use only Operational achievements in 2015 have set the platform for a definitive feasibility study in 2016 February 2015 Environmental Protection Authority guidelines received Exploration licence granted to the south of Heemskirk March 2015 Metallu
Slide 6: Simplified plant design
Simplified plant design For personal use only Metallurgical optimisation led to smaller primary grind and elimination of heavy media separation and silica float circuits saving A$5m from capex 6
Slide 7: St Dizier scoping study completed
St Dizier scoping study completed For personal use only Low cost open pit (capital and operating) - source of blending ore for processing in the Heemskirk plant Low capital development cost of A$3.8m Mining inventory of 424,000 tonnes @ 0.86% tin Initial mine life of 30 months Annual ore pro
Slide 8: Quality tailings dam site secured
Quality tailings dam site secured For personal use only Tailings dam site in plan and oblique view Capacity 3x initial mine life Low capital containment Initial cost A$1.4m wall plus A$3.4m pipeline No observed geological flaws Concealed valley Crown land No competing land use No obs
Slide 9: Optimisation increased NPV by 62%
Optimisation increased NPV by 62% For personal use only The 2013 PFS NPV has increased by A$38m to A$99m following an optimisation program that increased recovery and lowered capital cost Recovery increase to 72.5% added $18m to NPV Lower mining cost offset by higher processing cost Paste fill
Slide 10: Capital cost lowered to A$110.3m
Capital cost lowered to A$110.3m For personal use only Pre-production capital cost reduced by 12.9% or A$16.3m 85% of the capital reduction from processing plant and surface infrastructure Plant simplification, lower procurement costs, design improvements Lower cost tailings dam site secured
Slide 11: Operating cost reduced by 8.2%
Operating cost reduced by 8.2% For personal use only Total operating cost (C3) reduced to A$21,355/t or US$14,949/t at spot A$ Heemskirk is cash positive (based on C2 costs) at bottom-of-the-cycle tin price Moderate 5% reduction in C1 mine-gate cash cost 4.5% increase in recovery accounts for
Slide 12: Competitive cost structure
Competitive cost structure For personal use only At 0.70USD/AUD the Heemskirk project has moved down the international tin industry cost curve towards the 40th percentile position 12
Slide 13: Substantial leverage to tin price
Substantial leverage to tin price For personal use only Significant upside for the Heemskirk NPV as the spot tin price increases over the next 3 years (production expected 2018) A$m NPV 300 Spot price Spot price Sep 2015 Mar 2011 250 200 150 100 improvement with optimisation 50 improvement with exch
Slide 14: What are we doing now?
What are we doing now? For personal use only Fast Start Scoping Study based on the Lower Queen Hill Indicated Resource Queen Hill Tonnes Sn Contained Sn Cu Pb Zn Ag millions % tonnes % % % ppm Upper (above 1100m RL) 0.51 1.19 6,056 0.10 1.20 0.77 46 Lower (below 1100m RL) 1.09 1.36 14,824 0.03 0.16
Slide 15: Why Lower Queen Hill?
Why Lower Queen Hill? For personal use only Closest deposit to the surface – first ore access within 6 months – better chance of catching the tin price up-swing Already drilled to Indicated status – little additional drilling to define an ore reserve Much lower mine capex – only essential c
Slide 16: Fast start is an opportunity to explore
Fast start is an opportunity to explore For personal use only Going underground provides an opportunity to better understand deposit geology and define deeper exploration targets below the known deposits 16
Slide 17: Concluding remarks
Concluding remarks For personal use only Stellar is in a sound position with a high quality tin asset Significant progress over the last 12 months - project momentum maintained despite difficult market conditions NPV increased by 62% to A$99m – through a number of positive outcomes from the
Slide 18: Appendix
For personal use only Appendix Heemskirk PFS mine plan Board of Directors ASX: SRZ www.stellarresources.com.au 16
Slide 19: Heemskirk 2013 PFS mine plan
Heemskirk 2013 PFS mine plan For personal use only Surface Queen Hill Long Hole Stoping Montana Long Hole Stoping Severn Drift & Fill Severn Long Hole Stoping Open at depth 500m 19
Slide 20: Board of Directors
Board of Directors For personal use only Experienced and multi-disciplinary Board with strong global connections Phil Harman Non-Executive Chairman Geophysicist Over 30 years experience in BHP Billiton Thomas Whiting minerals exploration Non-Executive Director Past and present Director of severa
Slide 21: Disclaimer
Disclaimer For personal use only Forward Looking Statement This presentation was prepared by Stellar Resources Limited ( the “company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the company or as an offer or invitation with respect to those
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
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