Slide 1: Tin in Tasmania - Heemskirk Tin Project
1 Tin in Tasmania HEEMSKIRK Investor Presentation TIN Melbourne 1st August 2018 ASX: SRZ PROJECT www.stellarresources.com.au
Slide 2: Stellar Resources Limited (ASX:SRZ)
2 H E E M S K I R K I S T I N I N T A S M A N I A STELLAR RESOURCES LIMITED (ASX:SRZ) STELLAR RESOURCES OVERVIEW EXPLORATION POTENTIAL DARE TO DREAM IS HEEMSKIRK TIN IS AN ENERGY METAL WITH ANOTHER RENISON? A BRIGHT FUTURE DEVELOPMENT PLAN PROVIDES THE INVESTMENT OPPORTUNITY OPTIONALITY
Slide 3: Stellar Resources - Overview
3 STELLAR RESOURCES - OVERVIEW W E S T C O A S T T A S M A N I A – A U S T R A L I A ’ S L A R G E S T A N D M O S T P R O D U C T I V E T I N F I E L D FIRST CLASS POSITION IN TASMANIA’s BEST UNDEVELOPED TIN ASSETS • Stellar’s flagship Heemskirk Tin Project is the highest grade undeveloped tin depo
Slide 4: Advancing Multiple Development Options
4 ADVANC ING MULTIP LE DEVELOPMENT OPTIONS W E S T C O A S T T A S M A N I A – A U S T R A L I A ’ S L A R G E S T A N D M O S T P R O D U C T I V E T I N F I E L D HEEMSKIRK ST DIZIER MT RAZORBACK • JORC 2012 Resource of 6.25mt @ • JORC Resource of 1.2mt @ 0.7% tin • Mt Razorback contains two small
Slide 5: High Grade Cassiterite Tin Resource
5 HIGH GR ADE C AS S ITER ITE TIN R ES OUR C E JORC 2012 RESOURCE ESTIMATE(2016 Updat e) Heemskirk Classification Deposit Tonnage Total Sn Contained Cassiterite 1 Cu Pb Zn S SG mt % Sn t % of total Sn % % % % mg/l Indicated Upper Queen Hill 0.47 1.15 5,000 91 0.12 1.30 0.81 13.80 3.72 Lower Queen Hi
Slide 6: Satellite Projects Add Resource Potential
6 S ATELLIT E P R OJ EC TS ADD R ES OUR C E P OTENT IA L St Dizier 1 Classification Tonnage Total Sn Contained Soluble Cassiterite WO3 Fe S mt % Sn t Sn % % of total Sn % % % Indicated 1.20 0.69 8,280 0.09 87 0.04 23.70 2.64 Inferred 1.06 0.52 5,512 0.22 58 0.05 22.22 1.81 Total Resource 2.26 0.61 1
Slide 7: Corporate Overview
7 CORPORATE OVERVIEW S H A R E P R IC E Y E T T O R E F L E C T S O L ID A C H IE V E M E N T S A T H E E M S K IR K T IN COMPANY OVERVIEW • 100% owner of Heemskirk Tin Project, 150km south of Burnie, Tasmania • Stand- out high grade resource ( 1.13% Sn) with vision to be a major Australian tin prod
Slide 8: Stellar Resources Limited (ASX:SRZ)
8 H E E M S K I R K I S T I N I N T A S M A N I A STELLAR RESOURCES LIMITED (ASX:SRZ) STELLAR RESOURCES OVERVIEW EXPLORATION POTENTIAL DARE TO DREAM IS HEEMSKIRK TIN IS AN ENERGY METAL WITH ANOTHER RENISON? A BRIGHT FUTURE DEVELOPMENT PLAN PROVIDES THE INVESTMENT OPPORTUNITY OPTIONALITY
Slide 9: New Technology to Drive Tin Use
9 TIN DEMAND NEW TECHNOLOGY TO DRIVE TIN USE T he Next Gr o wt h P er io d fo r T in is • Rio T int o r anks t in as t he met al best placed t o benefit fr o m abo ut t o E mer ge : new t echno lo gies. • T in use in elect r ical and ener gy st o rage applicat io ns is easy t o achieve and po t ent
Slide 10: Battery and Chemical Use Already Important
10 T I N D E M A N D BATTERY AND CHEMICAL USE ALREADY IMPORTANT • Glo bal demand gr o wt h o f 2% pa since 2012 • China r epr esent s 45% o f glo bal t in demand • Lead - acid bat t er y use up 15% pa since 2012, 46% pa in China o ver t he same per io d • T in int ensit y in lead - acid bat t er ies
Slide 11: Potential Tin Use in 2nd Generation EV Batteries
11 F U T U R E G R O W T H F O R T I N I N E V B A T T E R I E S POTENTIAL TIN USE IN 2 ND GENERATION EV BATTERIES I T A V I E W O F T I N ’ S R O L E
Slide 12: Advantages of Using Tin in EV and PV
12 TIN DEMAND ADVANTAGES OF USING TIN IN EV AND PV Increases energy density in battery anodes = increased battery life University of Alberta, Cornell University, Furukawa Group, University of Texas Improves conductivity of silicon and graphite anodes = improved cycle times Nissan, Daimler, Samsung a
Slide 13: The Importance of China
13 China’s Tin Market in 2017 THE IMPORTANCE OF CHINA • Acco unt s fo r 45% o f glo bal demand – so lder t he lar gest end - use - lead - acid bat t er y use gr o wing t he st r o ngest • Net expo r t s have incr eased t o 9kt in 2017 in r espo nse t o r ising pr o duct io n and r educed expo r t du
Slide 14: Mine Production Declining
14 TIN SUPPLY MINE PRODUCTION DECLINING • E xcluding Myanmar , glo bal mine pr o duct io n is 10% belo w it s 2014 high • P r edict able pr o duct io n ( har d r o ck and co r por at e alluvia l) has falle n t he mo st • Har d r o ck under gr o und has declined fr o m 39% o f supply t o 32% in 3 yea
Slide 15: Myanmar Facing Lower Production
15 TIN SUPPLY MYANMAR FACING LOWER PRODUCTION • I T A expect Myanmar pr o duct io n t o fall by 12kt o r 18% in 2018 – t he fir st year o f decline since 2012 • Lo wer pr o duct io n in 2018 is anecdo t al and no t yet r eflect ed in shipment s due t o go ver nment st o ck r educt io n • Or e gr ade
Slide 16: Where Is the New Supply?
16 TIN SUPPLY WHERE IS THE NEW SUPPLY? • Myanmar ’s st r o ng pr o duct io n gr o wt h o ccur r ed because o f pr o ximit y t o smelt ing facilit ies in China, access t o Chinese capit al and cult ur al t ies bet ween miner s and smelt er s – a sit uat io n unlike ly t o be r epeat ed • I nner Mo ng
Slide 17: Price Has Steadily Improved Since 2015 Low
17 IMPROVED TIN MARKET OUTLOOK PRICE HAS STEADILY IMPROVED SINCE 2015 LOW T in P r ice Dr iver s • Demand gr o wt h o f 2. 0% pa t o 2020 wit h st r o nger gr o wt h t o fo llo w • E V and P V sect o r s pr o viding o ppo rt unit ies fo r new demand • T r adit io nal supply so ur ces facing declinin
Slide 18: Stellar Resources Limited (ASX:SRZ)
18 H E E M S K I R K I S T I N I N T A S M A N I A STELLAR RESOURCES LIMITED (ASX:SRZ) STELLAR RESOURCES OVERVIEW EXPLORATION POTENTIAL DARE TO DREAM IS HEEMSKIRK TIN IS AN ENERGY METAL WITH ANOTHER RENISON? A BRIGHT FUTURE DEVELOPMENT PLAN PROVIDES THE INVESTMENT OPPORTUNITY OPTIONALITY
Slide 19: Maximise Mine Production
19 HEEMSKIRK PRELIMINARY FEASIBILITY MAXIMISE MINE PRODUCTION Heemskirk Mine Plan • S imult aneo us develo pment o f all t hr ee Queen Hill Long Hole Stoping depo sit s • Or e schedule based o n maximiz i ng t he Montana mining r at e Long Hole Stoping • Reniso n flo w sheet u sed fo r o r e pr o ce
Slide 20: Minimise Capital
20 HEEMSKIRK FAST START MINIMISE CAPITAL • Fast st ar t fo cu s t o r ed u ce d evelo p ment cap it al and • Mining schedule and co st s est imat ed by MiningOne get int o p r o d u ct io n 6 mo nt hs so o ner • Wo r ley P ar so ns assessed met allur gica l • S t ag e 1 Lo wer Qu een Hill wit h S t
Slide 21: Several Studies Completed, Final Feasibility Remaining
21 PROGRESS THROUGH EARLY HURDLES S EVER AL S TUDIES C OM P LETE D FIN A L FEAS IB IL IT Y R EM AIN I N G Increasing NPV/Capex M i ni ng: M i ni ngOne and Pol ber ro Cons ul t ing P r o c e s s E n g i n e e r i n g : W o r l e yP a r s o n s , G R E n g i n e e r i n g a n d M i n c o r e M e t a l
Slide 22: Mining Leases Granted
22 MINING LEASE S GRANTED SIGNIFIC ANT PROJECT MILES TONE THAT INCREASES TENURE AND SECURITY OVER THE RIGHT TO MINE TIN • ML2023P/M, ML2040P/M and ML2M/2014 granted to wholly owned subsidiary Columbus Metals Limited • MLs secure tin deposits and sites for the tailings pipeline route and tailings sto
Slide 23: Stellar Resources Limited (ASX:SRZ)
23 H E E M S K I R K I S T I N I N T A S M A N I A STELLAR RESOURCES LIMITED (ASX:SRZ) STELLAR RESOURCES OVERVIEW EXPLORATION POTENTIAL DARE TO DREAM IS HEEMSKIRK TIN IS AN ENERGY METAL WITH ANOTHER RENISON? A BRIGHT FUTURE DEVELOPMENT PLAN PROVIDES THE INVESTMENT OPPORTUNITY OPTIONALITY
Slide 24: Heemskirk's Excellent Potential
24 HEEMSKIR K’S EXCELLENT POTENTIAL EXPLORATION COULD INCREASE HEEMSKIRK 3X • Queen Hill, S ever n and Mo nt ana Oblique long-section o pen do wn plunge Old Ag/Pb mines • Gr anit e so ur ce r o cks infer r ed t o be known deposits >1. 0km fr o m sur face fr o m gr avit y partially-explored horizonta
Slide 25: Heemskirk's Excellent Potential
25 HEEMSKIR K’S EXCELLENT POTENTIAL EXPLORATION COULD INCREASE HEEMSKIRK 3X • Helimag dat a suppo r t s t he gr avit y mo del wit h dept h t o gr anit e so ur ce Oblique long-section r o cks > 1. 0km Surface Old Ag/Pb mines Tin deposits known deposits • No gr anit e int er sect ed in any partially-e
Slide 26: Exploration Potential at Mt Razorback
26 EXPLORATION POTENTIAL AT MT RAZORBAC K EL11/2017 MT RAZORBACK GRANTED • 10km via existing roads to Heemskirk or Renison • Potential to recover cassiterite from tailings • Potential to define a mineral resource below the Razorback open pit • Exploration potential along the Razorback and Grand Priz
Slide 27: Stellar Resources Limited (ASX:SRZ)
27 H E E M S K I R K I S T I N I N T A S M A N I A STELLAR RESOURCES LIMITED (ASX:SRZ) STELLAR RESOURCES OVERVIEW EXPLORATION POTENTIAL TIN IS AN ENERGY METAL WITH DARE TO DREAM IS HEEMSKIRK A BRIGHT FUTURE ANOTHER RENISON? DEVELOPMENT PLAN PROVIDES THE INVESTMENT OPPORTUNITY OPTIONALITY
Slide 28: Dare to Dream - Heemskirk the Next Renison?
28 DAR E TO DR EAM – HEEMS K IR K THE NEXT R ENIS O N? • Renison, Australia’s oldest and largest tin mine is located 18km to the NE of the Heemskirk Tin deposits • Heemskirk and Renison share the same geology and structural setting • Renison started with a 5 year mine life in 1968 treating 0.8mtpa i
Slide 29: Stellar Resources Limited (ASX:SRZ)
29 H E E M S K I R K I S T I N I N T A S M A N I A STELLAR RESOURCES LIMITED (ASX:SRZ) STELLAR RESOURCES OVERVIEW EXPLORATION POTENTIAL DARE TO DREAM IS HEEMSKIRK TIN IS AN ENERGY METAL WITH ANOTHER RENISON? A BRIGHT FUTURE DEVELOPMENT PLAN PROVIDES THE INVESTMENT OPPORTUNITY OPTIONALITY
Slide 30: Next Steps
30 NEXT S TEP S Explore Razorback Fault – define exploration drill targets from soil geochemistry Metallugical testing – Razorback tailings and ore in pit floor Drilling of Razorback targets – 3 to 4 hole program Review development options for St Dizier tin project Fund surface drilling or explorati
Slide 31: Heemskirk - A World Class Tin Project
31 HEEM S K IR K – A W OR LD C LAS S TIN P R OJ EC T • Heemskirk is well placed on t he grade t onnage curve – it has pot ent ial t o increase grade and t onnes • Exist ing underground producers San Rafael and Reniso n facing declini ng grade as are ot her producers • Many compet it ors are lower gr
Slide 32: The Investment Opportunity
32 THE INVES T ME NT OP P OR TUN ITY Investment in the best tin project in Australia – highest grade undeveloped tin project listed on the Australian Stock Exchange Low cost investment – market capitalization undervalues Stellar’s tin assets Significant exploration potential – upside is a 3x increas
Slide 33: Disclaimer
33 DISC LAIMER FORWARD LOOKING STATEMENT This presentation may include forward-looking statements. Forward-looking statements include, but are not limited to statements concerning Stellar Resources Limited’s planned activities and other statements that are not historical facts. When used is this rep
Slide 34: Appendix
34 APPE ND I X HISTORY OF HEEMSKIRK TIN PROJECT BOARD OF DIRECTORS
Slide 35: Path from Discovery to Development
35 PATH FROM DISCOVERY TO DEVELOPMENT W E S T C O A S T T A S M A N I A – A U S T R A L I A ’ S L A R G E S T A N D M O S T P R O D U C T I V E T I N F I E L D EVOLUTION OF A WORLD CLASS TIN PROJECT • QH tin deposit discovered early 1960s by Gippsland Ltd • Aberfoyle jv with Gippsland in 1971 – dis
Slide 36: Board of Directors
36 EXPERIENCED AND MULTI -DISCIPLINARY WITH STRONG GLOBAL CONNECTIONS BOARD OF DIRECTORS PHIL HARMAN, NON-EXECUTIVE CHAIRMAIN GEOPHYSICIST O v e r 3 0 ye a r s e x p e r i e n c e i n B H P Bi l l iton mi ner als expl or ation THOMAS WHITING, NON-EXECUTIVE DIRECTOR Pas t and pr es ent Di r ect or of
Slide 37: Stellar Resources Limited
37 STELLAR Level 17, 530 Collins Street Melbourne VIC 3000 RESOURCES Phone +61 3 9618 2540 Fax +61 3 9649 7200 LIMITED www.stellarresources.com.au