Slide 1: Heemskirk Tin Project - Tasmania
For personal use only Heemskirk Tin Project - Tasmania Presented by CEO Peter Blight Noosa Mining Conference 14 July 2011
Slide 2: Corporate
Corporate For personal use only ASX Code: SRZ (listed April 2005) Shares on Issue: 108.8M Share Price: 14c (12 month range: 4-24c) Market Capitalisation: $15M Cash: $3.0M (Mar 11) Investment: $0.7M (USA shareholding) Ownership Structure Board & Management Top 20 - 43% Phil Harman – Non-Executive Cha
Slide 3: Focused on tin
Focused on tin For personal use only Rapidly advancing Heemskirk Tin near Zeehan, Tasmania Tin market remains supportive High grade tin development - established mining region Significant resource upside potential Positive scoping study takes project to pre-feasibility Pre-feasibility drilling under
Slide 4: Tin prices set to recover
Tin prices set to recover For personal use only LME Stocks LME Price Tin demand rising to 372,000 tonnes in 2011 Supply shortfall of 6kt expected in 2011 – all in second half LME stocks peaking at 22kt or 22 days demand Price consolidating around US$25,000/tonne 4
Slide 5: Growth dominated by solder
Growth dominated by solder For personal use only Source: ITRI Tin recycling is becoming more important, particularly in China, and now represents 22% of global demand 5
Slide 6: Why is tin solder important?
Why is tin solder important? For personal use only Tin solder preferred by electronics industry Meets legal requirement for lead free solder Non-toxic in manufacturing environment Better performance than other low melting point alloys Allows more efficient use & smaller circuit boards Design costs m
Slide 7: Where is tin mined?
For personal use only Where is tin mined?
Slide 8: Need for 80ktpa of new production
Need for 80ktpa of new production For personal use only Source: ITRI 8
Slide 9: Not enough in ITRI project list
Not enough in ITRI project list For personal use only Compa ny Proje ct Country Ca pa city Minsur San Rafael tailings Peru 7,500 Syrymbet Syrymbet Kazakhstan 6,500 Kasbah Resources Achmmach Morocco 5,600 Amerilangui Ujin Narsiin Khundlen Mongolia 5,200 TMR Ltd Offshore dredges Indonesia 5,000 Metals
Slide 10: Great location - multiple deposits
Great location - multiple deposits For personal use only 60% owned Heemskirk plus 100% owned St Dizier tin deposits Significant mining district Easy access to water & power Sealed road between both deposits Rail & road connect to Burnie port 18 km from Renison tin concentrator Yunnan Tin Group buyin
Slide 11: High Grade Resource
High Grade Resource For personal use only Heemskirk Mineral Resource 4.4mt grading 1.1% tin 48kt of contained tin in 3 nearby deposits Queen Hill, 1.6Mt @1.2% tin as indicated resource All deposits open at depth Highest grade tin project with JORC resource Heemskirk Mineral Resource Deposit Indicate
Slide 12: High grade relative to project peers
High grade relative to project peers For personal use only Grade % Source: MetalsX Million Tonnes 12
Slide 13: Scoping study greenlight
Scoping study greenlight For personal use only Internal rate of return of 21% & 3.5yr payback advance project to pre-feasibility stage US$12,780/t cash cost positions project competitively on the industry cost curve Life of mine revenue of $673 million net of smelter charges 600,000 tpa throughput o
Slide 14: Conservative project assumptions
Conservative project assumptions For personal use only Parameter Units Assumption Comment Mine life years 7.6 minimum life typical for underground Mining dilution % 15 mines average resource grade is ROM grade % 0.93 1.1% drawing from all three Treatment rate tpa 600,000 deposits Recovery % 70 targe
Slide 15: Competitive cost structure
Competitive cost structure For personal use only Current tin price & marginal cost of production US$25,000/t Heemskirk US$12,780/t Existing production Major new projects 15 Cash cost estimates are provisional and used with permission from a forthcoming ITRI report.
Slide 16: Excellent exploration potential
Excellent exploration potential For personal use only 16
Slide 17: Renison's numerous blind deposits
Renison’s numerous blind deposits For personal use only 17 Source: MetalsX
Slide 18: Positive Metallurgy
Positive Metallurgy For personal use only Traditional high-sulphide tin ore processing circuit proposed – comparable with Renison Bell circuit Tin present as cassiterite rather than more difficult to treat stannite Good liberation characteristics down to finer fraction Mineral characterization shows
Slide 19: Unlocking value
Unlocking value For personal use only Rapid Development Timeline August 2010 Queen Hill Drilling Provides Positive Results December 2010 Assay Results & Metallurgical Testwork March 2011 JORC Resource Established March 2011 Resource Extension Drilling Commences July 2011 Scoping Study Completed Q3 2
Slide 20: How does Heemskirk compare?
How does Heemskirk compare? For personal use only Advanced tin project Positive scoping study outcome adds momentum Highest grade tin project with JORC resource Metallurgical testing on-going with positive outcomes Excellent exploration potential around known deposits Project located near mining inf
Slide 21: What does Stellar offer investors?
What does Stellar offer investors? For personal use only Tin exposure – LME metal with best supply & demand position JORC compliant tin resource - 48,000 tonnes of tin Focus on a single commodity and a single project Newsflow from drilling and metallurgy Timetable to production 21
Slide 22: Low Cost Opportunity
Low Cost Opportunity For personal use only Enterprise Value per Tonne Tin in Resources ($/T) Source: Broker research Opportunity for re-rating & share price upside 22
Slide 23: Disclaimer
Disclaimer For personal use only Forward Looking Statement This presentation contains only a brief overview of Stellar Resources Limited (“Stellar") and its activities and operations. The contents of this presentation, including matters relating to the geology of Stellar’s projects, may rely on vari
Slide 24: Stellar Resources Limited
Stellar Resources Limited Level 7 Exchange Tower, For personal use only 530 Lt. Collins Street Melbourne VIC 3000 Phone +61 3 9909 7618 Fax +61 3 9909 7621 www.stellarresources.com.au