Australian project developer Stellar Resources is making good progress at its Heemskirk project in Tasmania, one of the highest-grade undeveloped tin assets globally.

Speaking at the Diggers and Dealers conference on Monday, CEO Simon Taylor outlined the favourable macro setting for the company’s plans, with global disruptions limiting tin output from major producers.

“Global supply, because of disruptions, has been falling – primarily from Indonesia, Myanmar and the Congo – which makes up about 36% of the world’s tin,” said Taylor. He cited delays in Indonesian exports, Myanmar’s suspension of mining and recent earthquake impacts, as well as operational issues in the Democratic Republic of Congo.

The tin price has responded, rising to about $33 000/t as stockpiles decline, making new sources of supply increasingly attractive. “We see the macros for tin going forward looking really good,” Taylor said.

Heemskirk, located on Tasmania’s west coast, boasts a resource of just under 80 000 t of tin at over 1% grade. “If you are thinking gold, times that by four – you are looking at a 4 g/t orebody,” said Taylor. “It’s a high-grade underground project with good metallurgy.”

Drilling continues to return standout intersections, including 23 m at 2.2% tin and over 6 m at more than 2% tin. Taylor highlighted that the grade appeared to increase with depth, a characteristic typical of tin systems. “We think the resource will grow."

A scoping study confirmed the project’s viability at a 350 000 t/y production rate, with all-in sustaining costs of about $18 000/t. Stellar is now targeting a doubling of throughput in its upcoming prefeasibility study, due later this year.

Ore sorting is expected to enhance economics, with testing showing a 2.4-times upgrade in feed grade and a 29% mass rejection. “That allows for a smaller plant, lower opex, and a smaller tailings dam,” said Taylor.

Located near infrastructure, the project benefits from proximity to hydroelectric power, community and regulatory support, and granted mining licences. Taylor said that offtake from Heemskirk would be “very stable” and that tin concentrate from the project would be “highly sought after”.