Stellar Resources Gets Tin-mining Lease for Saint Dizier

Tin explorer and developer Stellar Resources (ASX:SRZ) has landed a mining lease for its Saint Dizier tin deposit in western Tasmania, the company announced on Wednesday (January 30).

The lease will allow the company to extract tin and other metals from the deposit for an initial six-year period.

“Granting of [the mining lease] shows strong support from the Tasmanian government for Stellar’s tin development strategy. The company is now well positioned with all of its JORC compliant tin mineral resources under long-term tenure,” Managing Director Peter Blight said.

Saint Dizier also increases the range of development options for the company’s Heemskirk tin project, which has a JORC-compliant mineral resource of 6.4 million tonnes at 1.13 percent tin.

The deposit will now provide the potential for development of a low-cost open pit with ore processed through the company’s proposed processing facility at Zeehan or through a third-party facility.

An updated scoping study on Saint Dizier shows the capital investment is estimated to be $3.8 million, with net present value reaching $10.4 million, an internal rate of return of 166 percent and a payback period of 8 months. The project can be brought into production within 3 months of receiving approvals.

“The scoping study shows attractive returns on investment from the St Dizier open pit mine and development of St Dizier may be an important part of a ‘fast start’ option which the company is continuing to review,” Blight added.

Looking ahead, Stellar is working on collecting enough data to reduce processing risk and prepare a definitive feasibility study. In addition, the company plans to submit a development proposal and environmental management plan to the West Coast Council in support of a mining permit.

On Wednesday, shares of Stellar Resources remained flat at AU$0.01.

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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.