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STELLAR RESOURCES LIMITED Capital/Financing Update 2008
65860_rns_2008-03-16_83a06888-f25a-462a-8def-fd2d9a435942.pdf
Capital/Financing Update
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[email protected] ASX ReleaseAcquisition of 60% of Zeehan Tin Project Stellar Resources Limited is very pleased to announce that it has signed an agreement to acquire a 60% interest in the Zeehan Tin Project from Western Metals Limited, Retention Licence RL 5, located near the mining town of Zeehan in northwest Tasmania. The remaining 40% interest is held by ASX and LSE-AIM listed Gippsland Limited.
The purchase consideration for the acquisition is $1.178m, to be satisfied by cash and shares.
Currently these deposits represent the largest known undeveloped tin resources in Australia.
Stellar Resources has been active on the northwest coast of Tasmania since its inception. Exploration has confirmed a number of tin prospects, including the St Dizier deposit, around the northern edge of the Heemskirk granite
Zeehan Tin
The Zeehan Tin Project includes the Queen Hill, Montana and Severn deposits, which were identified by Gippsland and Aberfoyle over 25 years ago. A substantial amount of drilling during that time by these companies allowed the following resource estimate to be made by them (an historic mineral resource as defined under the December 2007 JORC release):
7.3 Mt @ 0.69% Sn for 50,370 tonnes of contained tin, but importantly
3.6 Mt @ 1.2% Sn for 43,000 tonnes of contained tin was estimated in the higher grade portions of the three known deposits.
There has been no drilling on the project over the last 25 years due mainly to low tin prices. However, the recent recovery in the tin price to near record levels and the lack of exploration at depth provide the opportunity to confirm and expand the historic mineral resources.
Tin is a non toxic and thus environmentally friendly metal and is presently
ASX Code: SRZ
ABN 96 108 758 961 Level 7 Exchange Tower 530 Little Collins Street Melbourne Victoria 3000 Australia
Telephone +61 3 9909 7618 Facsimile +61 3 9909 7621
Under the joint venture terms, Stellar has the right to increase its interest from 60% to 70% by completing a feasibility study to a banking stage. The Zeehan
Tin project is being acquired in Stellar's 100% owned subsidiary company
For further details please contact:
Columbus Metals Limited.
experiencing improving demand and pricing.
Tom Burrowes Tel: (03) 9909 7618 Email: [email protected] David Sasson Tel: (03) 9909 7618 Email: [email protected]
17 March 2008
The drill and exploration results reported herein, insofar as they relate to mineralisation, are based on information compiled by Mr. Chris Young (Member of the Australasian Institute of Mining and Metallurgy) who has more than 5 years experience in the field of activity being reported. Mr. Young consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. It should be noted that the abovementioned resources are reported under the December 2007 provision of the JORC code for reporting historic resource estimations. .
For further details please contact:
| Tom Burrowes | Tel: | (03) 9909 7618 | Email: [email protected] |
|---|---|---|---|
| David Sasson | Tel: | (03) 9909 7618 | Email: [email protected] |