Stellar Resources Ltd Heemskirk Tin Project Discovery Extends Depth

Stellar Resources Strikes Gold with Major Discovery at Heemskirk Tin Project

Stellar Resources (ASX: SRZ) has delivered exceptional drilling results that could reshape its Heemskirk Tin Project in Western Tasmania. The company's latest wedge drilling programme at the Severn deposit has not only confirmed the existing geological model but uncovered a new high-grade tin lode 60 metres below the current resource envelope. This Stellar Resources Ltd Heemskirk Tin Project discovery highlights significant untapped potential in the system.

The breakthrough comes as global tin markets tighten, with spot prices rallying near US$50,000 at the time of announcement. With drilling success continuing and the company's total contained tin resources now exceeding 100,000 tonnes, Stellar has cemented its position as Australia's highest-grade undeveloped tin project.

Outstanding Drilling Results Confirm Resource Quality

Wedge hole ZS187W2B delivered multiple zones of significant tin mineralisation, validating the company's 2023 Resource model with impressive results. Furthermore, the decision to extend the hole beyond planned depth paid off handsomely, intersecting a new zone of mineralisation approximately 60m below the existing Resource model.

Within the Existing Resource Model

The drilling programme confirmed the resource quality with substantial intersections:

• 22.0m @ 0.45% Sn from 479.7m including:
  • 2.6m @ 1.49% Sn from 499.1m

• 10.0m @ 0.88% Sn from 526m including:
  • 3.6m @ 2.09% Sn from 527.8m

New Discovery Below Resource Envelope

Most significantly, the new discovery zone delivered exceptional results:

• 12.6m @ 0.83% Sn from 611m including:
  • 2.9m @ 3.00% Sn from 620.1m

This demonstrates the significant depth potential of the system and positions Stellar to materially expand its resource base in upcoming updates. In addition, the results validate the company's systematic exploration approach in testing multiple geological targets.

What is Wedge Drilling and Why It Matters?

Wedge drilling is a cost-effective exploration technique where a new hole is started from within an existing drillhole using a wedge device to redirect the drilling direction. This allows companies to test multiple geological targets from a single collar position, significantly reducing setup costs and environmental impact.

For investors, this approach is particularly valuable because it delivers multiple benefits. Cost efficiency allows multiple targets tested from one setup, whilst reduced permitting requirements mean fewer surface disturbances. Additionally, the approach enables faster results through quicker access to priority geological zones and higher success rates by building on existing geological knowledge.

Stellar's wedge drilling strategy has proven highly successful, with the company completing 8 wedge holes as part of its current 29-hole, 12,614m programme. However, the decision to extend ZS187W2B beyond planned depth exemplifies how geological observations can generate significant value when companies maintain flexibility to adapt their programmes.

Resource Growth Trajectory Accelerating

Stellar's resource base has expanded dramatically in recent months, positioning the Stellar Resources Ltd Heemskirk Tin Project discovery within a broader growth trajectory. Following the recent Queen Hill Resource update on 23 February 2026, which increased resources by 41%, the company has achieved significant milestones.

Current Total Resource Position

Stellar now commands an impressive resource portfolio:

• Total Mineral Resource: 9.5 Mt @ 0.93% Sn
• Contained Tin: 88,100 tonnes
• Classification Breakdown:
  • Indicated: 4.60Mt @ 0.95% Sn (43.71kt contained tin)
  • Inferred: 4.9Mt @ 0.90% Sn (44.4kt contained tin)

Including the nearby St Dizier satellite deposit, Stellar's total contained tin exceeds 100,000 tonnes. This represents a significant milestone that reinforces the project's scale and quality in the global tin development landscape.

Global Ranking Position

This resource base positions the project strategically:

• #1 highest-grade undeveloped tin project in Australia
• #3 highest-grade globally among peer company projects

Furthermore, the upcoming Severn Resource update in Q2 2026 is expected to further expand these figures, incorporating the new discovery results and additional drilling data.

Development Timeline and Value Catalysts

Stellar is advancing multiple workstreams toward development-ready status, with several immediate catalysts approaching. The company maintains two rigs currently operating at Heemskirk, demonstrating commitment to accelerating development timelines.

Immediate Catalysts (Q2 2026)

Three key catalysts will drive near-term value creation:

1. Severn Resource Update – incorporating new discovery and infill drilling
2. Prefeasibility Study (PFS) completion – comprehensive technical and economic assessment
3. Additional drilling results – programme extended due to success

Operational Progress

The drilling programme continues to expand beyond original parameters. Additional 3 holes planned beyond the original 29-hole programme reflect the success of current operations. Moreover, Hole ZS187W2C currently underway to test mineralisation north and up-dip, whilst Hole ZS191 being completed to test up-dip position from ZS166.

The company's systematic approach focuses on resource conversion from Inferred to Indicated categories whilst expanding the overall resource envelope. In addition, both activities are critical for advancing the PFS and supporting future development decisions.

"We are pleased with these latest results from Severn. Not only did our wedge drilling deliver the solid, high-grade tin intercepts predicted by our geological model, but the decision to deepen hole ZS187W2B has paid off handsomely by uncovering a brand new, high-grade lode well below the existing Mineral Resource Estimate," commented Managing Director Simon Taylor.

Investment Thesis: Positioning for the Tin Supply Squeeze

The global tin market is experiencing significant supply constraints, with spot prices rallying near all-time highs above US$50,000. This environment particularly benefits high-quality, near-development projects in stable jurisdictions like the Stellar Resources Ltd Heemskirk Tin Project discovery.

Market Dynamics Supporting Stellar

Several market factors create favourable conditions for tin developers. Global supply chain disruptions continue to affect traditional producing regions, whilst demand for tin remains robust across electronics and renewable energy sectors. Furthermore, the strategic importance of tin as a critical mineral enhances the value proposition for projects in stable jurisdictions.

Stellar's Competitive Advantages

Four key factors differentiate Stellar in the competitive landscape:

1. Tier-1 Jurisdiction: Western Tasmania provides political stability and established mining infrastructure
2. Unencumbered Offtake: No restrictive pre-existing agreements limit commercial flexibility
3. High-Grade Resource: Superior tin grades reduce processing costs and improve economics
4. Development-Ready Timeline: PFS completion in Q2 2026 positions for near-term development decisions

Production Target Context

Stellar aims to produce 3,000-3,500 tonnes per annum of payable tin, representing approximately 1% of global supply. Whilst this is an aspirational target requiring successful project development, the resource quality and scale support the potential for meaningful production levels.

However, the achievement of these production targets depends on successful completion of feasibility studies, securing development financing, and obtaining necessary regulatory approvals.

Understanding Tin Mineralisation Systems

Tin deposits form through complex geological processes typically associated with granite intrusions. At Heemskirk, tin occurs primarily as cassiterite (tin oxide), the most economically important tin-bearing mineral found in commercial operations worldwide.

Key Characteristics of the Heemskirk System

The geological setting provides several advantages for continued exploration success:

• Granite-related deposits: Tin sourced from granite intrusion over 1km below surface
• Structural control: Mineralisation follows northeast-trending fold structures
• Multiple lodes: Three distinct tin-bearing zones identified at Severn
• High-grade continuity: Consistent grades demonstrated across drilling programmes

The geological setting resembles other world-class tin deposits, providing confidence in the system's potential for expansion. Furthermore, the structural geology at Heemskirk provides multiple exploration vectors for future programmes.

Exploration Advantages

Several factors support continued exploration success:

• Depth extensions: New discovery proves system continues at depth
• Strike extensions: Mineralisation remains open along trend
• Parallel structures: Additional lodes may exist within the system
• Satellite deposits: St Dizier demonstrates district-scale potential

These characteristics position the Stellar Resources Ltd Heemskirk Tin Project discovery within a robust geological framework supporting long-term resource growth potential.

Why Should Investors Follow Stellar Resources?

The convergence of multiple positive factors creates a compelling investment narrative for Stellar Resources. The company combines exceptional resource quality with strategic market positioning and near-term development catalysts.

Strategic Asset Quality

Three key factors underpin the asset quality proposition:

• 100,000+ tonnes contained tin across multiple deposits
• Highest-grade undeveloped tin project in Australia
• Proven geological system with significant expansion potential

Market Positioning

Stellar benefits from advantageous market positioning through several channels. Unencumbered exposure to strengthening tin prices provides direct commodity leverage. Additionally, stable jurisdiction advantages amid global supply chain concerns enhance the project's strategic value. Moreover, near-development timeline with PFS completion due Q2 2026 positions the company ahead of many peers.

Operational Excellence

The company demonstrates operational capabilities through multiple achievements. Cost-effective drilling strategy delivering consistent results showcases technical competency. Furthermore, systematic resource conversion and expansion programme demonstrates disciplined capital allocation. In addition, strong technical team with proven track record provides execution confidence.

Upcoming Catalysts

The next six months offer multiple value-creation opportunities through drilling results, resource updates, and PFS completion. This provides regular newsflow for investors to track progress toward development-ready status.

The combination of exceptional resource quality, strategic market positioning, and near-term development catalysts makes Stellar Resources a compelling opportunity. For investors seeking exposure to the critical minerals sector through a premier Australian tin development story, the timing appears favourable.

With strengthening tin markets providing a supportive backdrop and multiple value catalysts approaching in Q2 2026, investors should monitor Stellar's progress closely. The company advances toward development-ready status in an increasingly supply-constrained tin market, with the Stellar Resources Ltd Heemskirk Tin Project discovery representing a significant milestone in this journey.

Want to Catch the Next Major Mining Discovery Before the Market Does?

Discovery Alert's proprietary Discovery IQ model delivers instant notifications on significant ASX mineral discoveries like Stellar's breakthrough at Heemskirk, empowering subscribers to identify actionable opportunities ahead of the broader market. Understand why historic discoveries can generate substantial returns and begin your 14-day free trial today to position yourself ahead of the next major breakthrough.