Stellar Resources Hits 1.4% Tin Beyond Severn, Eyeing Link to Montana Deposit
Key Takeaways
- Drillhole ZM194 returned 2.1m @ 1.40% Sn within 3.9m @ 0.82% Sn, 150m north of the Severn Resource and at shallower depths.
- The company says the result raises the prospect of Severn linking with the Montana Resource (10.4kt contained Sn @ 1.54% Sn) into a single deposit.
- True widths are about 70% of reported intervals, and no resource has been defined for the new area.
- Assays are pending from ZS197, ZM196 and wedge hole ZS187W3A, with two rigs operating.
- PFS completion is now targeted for 1H 2027, with the Heemskirk Total Mineral Resource at 13.36Mt @ 0.86% Sn for 115.3kt contained tin and tin trading above US$54,000.
Severn drilling hits 1.4% Sn, extending structure 150m north of resource
Stellar Resources has reported high-grade tin from drillhole ZM194 at its Heemskirk Tin Project in Western Tasmania, with the hole intersecting the interpreted extension of the Severn structure. The intersections sit outside the Severn Resource at shallower depths, and the company says they raise the prospect of linking Severn with the nearby Montana Resource.
The headline results from ZM194 were:
- 3.9m @ 0.82% Sn from 206.1m, including 2.1m @ 1.40% Sn from 206.1m
- 3.7m @ 0.41% Sn from 214m, including 0.9m @ 1.39% Sn from 216.8m
Sn is the chemical symbol for tin, so “% Sn” is simply the tin grade of the rock. The intersections lie along trend to the south of the Montana Resource (10.4kt contained Sn @ 1.54% Sn). The company states that potential exists for the Severn and Montana Resource zones to link along strike and at depth.
For investors, the point is scale. If the two zones connect, the project could host one larger zone rather than two separate ones.
Simon Taylor, Managing Director
“Intersecting high-grade tin 150m north of Severn at shallower depths is a major development in our geological understanding that substantially increases our confidence in the potential for Severn and Montana to merge into a single, unified deposit.”
ZM194 intercept table
Table 1 from the announcement lists every mineralised interval in the hole.
| From (m) | To (m) | Width (m) | Sn (%) | Note |
|---|---|---|---|---|
| 189.3 | 190.3 | 1 | 0.44 | |
| 193.4 | 197 | 3.6 | 0.16 | |
| 201 | 202 | 1 | 0.74 | |
| 206.1 | 210 | 3.9 | 0.82 | |
| 206.1 | 208.2 | 2.1 | 1.40 | including |
| 214 | 217.7 | 3.7 | 0.41 | |
| 216.8 | 217.7 | 0.9 | 1.39 | including |
Intervals use a 0.10% Sn lower cut-off and no more than 1m of consecutive internal dilution. ZM194 intersected mineralisation at about 45° to the modelled dip of the ore body, so true widths are about 70% of the reported interval widths.
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Follow-up drilling: what is under way
Two rigs are operating, and the company says it will continue to report further assays as they come to hand. Three holes make up the near-term pipeline:
- ZS197 commenced immediately to test below ZM194 and towards historic hole ZS140 (10.0m @ 0.43% Sn from 794m and 1.1m @ 2.24% Sn from 855.4m).
- ZM196, on the second rig, is testing the Severn trend north of Montana, near the historic Donnolly’s mine. Assays have not yet been reported.
- Wedge hole ZS187W3A was drilled below the current Severn Resource to a final depth of 850m, with assays pending. It is the 6th wedge completed from the ZS187 parent.
No results have been reported for any of these three holes. What it tells you is that further news flow is queued, and each result will either support or challenge the ZM194 interpretation.
What is a resource extension, and why does linking deposits matter?
A Mineral Resource is the defined tonnage and grade of mineralisation in the ground. Drilling outside that defined area can show whether more tonnes and higher grades (the Sn%) exist nearby.
Joining Severn and Montana could mean a larger, more continuous deposit. That would matter for mine planning and scale, because one connected zone is generally simpler to plan around than separate pockets.
This is exploration drilling, though. No resource has been defined for the new area.
Heemskirk’s project strength and tin market backdrop
The Heemskirk Tin Project has a Total Mineral Resource of 13.36Mt @ 0.86% Sn for 115.3kt of contained tin. The company says it continues to rank as the highest-grade undeveloped tin project in Australia and the third highest-grade globally of peer company projects.
On the market side, the company states tin prices continue to hold near all-time highs and remained above US$54,000 at the time of writing. It cites tightening global supply and disruption concerns, and points to unencumbered offtake in a stable Tier-1 jurisdiction.
| Item | Figure |
|---|---|
| Heemskirk Total Mineral Resource | 13.36Mt @ 0.86% Sn |
| Contained tin | 115.3kt |
| Montana Resource | 10.4kt contained Sn @ 1.54% Sn |
| Tin price at time of release | Above US$54,000 |
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PFS and next steps
Prefeasibility Study (PFS) work continues, focused on optimising mining and processing configurations. The company is evaluating both a standalone operational model and potential capital-efficient pathways that utilise nearby existing regional infrastructure.
Trade-off studies are underway to assess incorporating the shallow Severn extensions and the high-grade Montana deposit into an expanded production profile. PFS completion is now targeted for 1H 2027, and drilling will shortly commence to provide sufficient material for DFS level metallurgical study.
For investors, the watch points are the pending assays from ZS197, ZM196 and ZS187W3A. The PFS may reflect larger production capacity, though the announcement does not say what any further results will show.
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