Slide 1: Heemskirk Tin Project
For personal use only Heemskirk Tin Project Highest grade undeveloped ASX-listed tin project ITRI Seminar London 1st June 2017 ASX: SRZ www.stellarresources.com.au
Slide 2: Five reasons to own Stellar
Five reasons to own Stellar For personal use only Tin price has bottomed – multi-year market deficit High grade and locational advantages provide competitive costs in a low risk environment Significant improvement in NPV/Capex as development strategy optimised Strategy and timeline focus
Slide 3: Corporate overview
Corporate overview For personal use only Share price yet to reflect solid achievements at Heemskirk Tin 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 producer Metallurgical
Slide 4: 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 5: Heemskirk – Discovery to Development
Heemskirk – Discovery to Development For personal use only NW Tasmania – Australia’s largest and most Evolution of a world class tin project productive tin field QH tin deposit discovered early 1960s by Gippsland Ltd Aberfoyle jv with Gippsland in 1971 – discovered Montana and Severn deposits
Slide 6: Best location for a new mine
Best location for a new mine For personal use only West Coast 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 se
Slide 7: Mining Lease Granted
Mining Lease Granted For personal use only Mining Lease grant is a significant project milestone that increases tenure and adds security over the right to mine tin ML 2023P/M granted to wholly owned subsidiary Columbus Metals Limited Term is 12 years to 1st January 2029 Provides right to carry
Slide 8: Heemskirk – a world class tin project
Heemskirk – a world class tin project For personal use only Heemskirk is well placed on the grade tonnage curve - potential to increase grade and tonnes Existing underground producers San Rafael and Renison facing declining grade as are other producers Many competitors either lower grade or in
Slide 9: Attractive tin industry cost curve
Attractive tin industry cost curve For personal use only Industry cost curve provides attractive margin for low cost operations Heemskirk is likely to be placed at the 45th percentile Current LME tin price No further costs to be removed from the industry – cost curve at a cyclical low ITRI e
Slide 10: Development strategy optimised
Development strategy optimised For personal use only Several studies completed - final feasibility remaining Study PFS (Prelim Feasibility) OPFS (Optimisation) Fast Start (Scoping) Increasing NPV/Capex Completion Jul-13 Nov-15 Sep-16 Development underground mine underground mine underground mine Str
Slide 11: Recovery gains upgraded valuation
Recovery gains upgraded valuation For personal use only Metallurgical optimisation led to smaller primary grind and elimination of heavy media separation and silica float circuits saving capex Removed heavy media separation Coarser grind size Increased to 250µ from 160µ Improved recovery fro
Slide 12: Fast Start = Sequential Development
Fast Start = Sequential Development 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 12
Slide 13: Timeline – fast start feasibility
Timeline – fast start feasibility For personal use only Stellar is poised to embark on a DFS for the Heemskirk project based on a fast start approach April 2017 - drilling commenced - significant news-flow to follow over the next 12 months Drilling targeting high-grade structures and testing exp
Slide 14: Renison provides exploration model
Renison provides exploration model For personal use only Comparison with Renison shows that known deposits at Heemskirk are just the start – mineralisation at Renison over 1200m vertically from surface Australia’s oldest and largest Sn mine is located 18km away to the NE of the Heemskirk Sn projec
Slide 15: Five reasons to own Stellar
Five reasons to own Stellar For personal use only Tin price has bottomed – multi-year market deficit High grade and locational advantages provide competitive costs in a low risk environment Significant improvement in NPV/Capex as development strategy optimised Strategy and timeline focus
Slide 16: Disclaimer
Disclaimer For personal use only 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. Whe
Slide 17: Appendix
For personal use only Appendix Tin Price Recovery Tin Demand Rising Tin Market Deficit JORC 2012 Mineral Resource Drilling Program Drilling Result – Queen Hill ASX: SRZ www.stellarresources.com.au
Slide 18: Tin price recovery underway
Tin price recovery underway For personal use only LME tin price is up 50% from its mid-January 2016 low Supply rationalisation underpinning price Supply restraint from largest producers China and Indonesia through 2016 and China in 2017 Growth of new supply from Myanmar accommodated by China cut
Slide 19: Tin demand – next growth phase?
Tin demand – next growth phase? For personal use only Tin demand – long-periods of strong growth Tin demand characterised by long periods of above trend growth driven by new uses Emergence of tin in lead acid batteries one example of a new use that could gain more traction Current growth pause
Slide 20: Rising tin market deficit?
Rising tin market deficit? For personal use only In 2015/2016, supply did the heavy lifting – will 2017 be characterised by an increased market deficit driven by stronger demand growth? 20
Slide 21: JORC 2012 confirms resource quality
JORC 2012 confirms resource quality For personal use only Mineral Resource estimate more robust following JORC 2012 upgrade 6.35mt @ 1.13% Sn or 72,000t of contained Sn 97% of contained Sn is in the form of cassiterite – the most readily recoverable Sn mineral 64% of Indicated Resource in Lowe
Slide 22: 9,000m drilling program underway
9,000m drilling program underway For personal use only Interpretative Regional Geology - Zeehan Cassiterite SnO2 22
Slide 23: Good start - 6m @ 0.84% Sn (ZQ133)
Good start - 6m @ 0.84% Sn (ZQ133) For personal use only Queen Hill Interpretative Cross-section Queen Hill Long-section 23
Slide 24: 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 24