HRE Acquires 80% of Prospect Hill Tin Project with High-Grade Drilling Results

A Strategic Expansion into Tin

Heavy Rare Earths Limited (ASX – HRE) has taken a significant step beyond its uranium focus by acquiring an 80% interest in the Prospect Hill Tin Project in South Australia. This move, ratified by shareholders at an extraordinary general meeting, expands HRE’s mineral rights from uranium-only to encompass all minerals at Prospect Hill, unlocking access to South Australia’s largest and most advanced tin project.

The acquisition is not just about adding tin to the portfolio; it represents a strategic diversification into a critical mineral increasingly valued by governments worldwide for its role in technology and manufacturing. Tin, primarily present as cassiterite at Prospect Hill, is classified as a critical mineral by the US, Canada, and the UK, underscoring its geopolitical and economic importance.

Rich Historical Data and Promising Drilling Results

Prospect Hill benefits from a comprehensive historical database spanning decades, including thousands of rock, soil, and stream samples, extensive geological mapping, and over 90 drill holes. The South Ridge prospect stands out with confirmed tin mineralisation extending over 500 metres of strike and to depths of 120 metres. Notable high-grade intercepts include 3 metres at 4.85% tin and 5 metres at 3.32% tin, indicating robust mineralisation.

These results provide a solid foundation for HRE’s plan to fast-track a maiden JORC Mineral Resource Estimate. The company intends to conduct further drilling to upgrade the resource, test extensions along strike and at depth, and undertake metallurgical testwork to assess processing potential.

Earn-In Agreement and Future Development

The acquisition is structured through an earn-in agreement requiring HRE to invest a minimum of $1.5 million in exploration and development over three years, including drilling at least 3,750 metres. Upon meeting these obligations, HRE will hold an 80% interest, with Havilah Resources Limited retaining a 20% stake, free-carried until completion of a bankable feasibility study.

This arrangement aligns incentives for both parties and provides HRE with a clear pathway to advance the project towards development. The company’s chairman, Gabriel Chiappini, highlighted the transformative nature of the acquisition and its potential to create significant investor value.

Broader Implications and Next Steps

By adding tin to its portfolio alongside uranium and other critical minerals such as scandium and rare earths, HRE is positioning itself as a diversified player in the strategic minerals sector. The Prospect Hill acquisition not only broadens commodity exposure but also enhances the company’s footprint in the energy transition supply chain.

Looking ahead, investors and analysts will be watching closely as HRE progresses drilling programs, compiles its maiden resource, and navigates regulatory and native title considerations. The company’s ability to leverage the rich historical data and deliver timely exploration results will be key to unlocking the project’s full value.