Heemskirk Tin Project Targets Up to 3,500 tpa with Infrastructure Deal Extended
Stellar Resources has extended its Memorandum of Understanding with Australian Hualong to explore using existing infrastructure near its Heemskirk Tin Project, aiming to enhance development plans and increase tin production.
- Six-month MOU extension with Australian Hualong over Comstock site
- Comstock infrastructure considered for Heemskirk Prefeasibility Study
- Focus on underground mining with renewable power and minimal surface impact
- Evaluation of tailings storage options led by engineering consultants
- Targeting 3,000–3,500 tonnes per annum of payable tin production
Extending the Path to Production
Stellar Resources Limited (ASX, SRZ) has taken a strategic step forward by extending its Memorandum of Understanding (MOU) with Australian Hualong Pty Ltd for an additional six months. This extension covers the Comstock site, located just 4 kilometres from Stellar’s flagship Heemskirk Tin Project in western Tasmania. The move underscores Stellar’s commitment to leveraging existing regional infrastructure as it advances its Prefeasibility Study (PFS) for the project’s development.
Infrastructure as a Catalyst
The Comstock site offers a suite of assets including tailings storage facilities, grid power, water supply, and plant infrastructure. Stellar is evaluating these assets as part of a broader strategy to optimize the Heemskirk project’s footprint and economics. The PFS is weighing options ranging from a standalone operation to a hybrid model that incorporates toll treating and existing facilities. This approach could reduce capital expenditure and accelerate timelines by avoiding the need to build all infrastructure from scratch.
Sustainability and Operational Focus
Heemskirk is planned as an underground mine with a small surface footprint, aligning with Tasmania’s renewable energy grid. This focus on sustainability and minimal environmental disturbance is increasingly important in today’s mining landscape. Stellar has engaged reputable engineering consultants to rigorously assess tailings storage options, including the Comstock facilities, to ensure safe and efficient waste management.
Production Ambitions and Market Position
The company aims to produce between 3,000 and 3,500 tonnes per annum of payable tin over the first 6 to 10 years of operation, a significant step up from the 1,900 tonnes per annum outlined in its 2024 Scoping Study. If achieved, this would position Heemskirk as a meaningful contributor to global tin supply, estimated at around 1% of the market. However, Stellar cautions that these production targets remain aspirational at this stage.
Looking Ahead
The non-binding MOU grants Stellar a six-month exclusivity period to explore infrastructure options at Comstock, excluding the Tenth Legion Iron Project. As the PFS progresses, investors will be watching closely for updates on infrastructure agreements, environmental approvals, and any revisions to production forecasts. The integration of existing assets could be a game-changer in bringing Heemskirk into production efficiently and sustainably.
Bottom Line?
Stellar’s infrastructure strategy could accelerate Heemskirk’s journey from resource to revenue, but key decisions lie ahead.
Questions in the middle?
- Will the PFS confirm the economic benefits of using Comstock’s infrastructure?
- How will tailings storage options impact project timelines and environmental approvals?
- What are the risks if production targets are not met or infrastructure integration proves challenging?
