1 Tin in Tasmania H E E M S K I R K Investor Presentation T I N Melbourne 1 st August 2018 ASX: SRZ P R O J E C T www.stellarresources.com.au
2 H E E M S K I R K I S T I N I N T A S M A N I A STELLAR RESOURCES LIMITED (ASX:SRZ) S T E L L A R R E S O U R C E S O V E R V IE W E X P L O R A T I O N P O T E N T I A L D A R E T O D R E A M I S H E E M S K I R K T I N I S A N E N E R G Y M E T A L W I T H A N O T H E R R E N I S O N ? A B R I G H T F U T U R E T H E I N V E S T M E N T O P P O R T U N I T Y D E V E L O P M E N T P L A N P R O V I D E S O P T I O N A L I T Y
3 STELLAR RESOURCES - OVERVIEW T A S M A N I A – A U S T R A L I A ’ S L A R G E S T A N D M O S T P R O D U C T I V E T I N F I E L D W E S T C O A S T F I R S T C L A S S P O S I T I O N I N T A S M A N I A ’ s B E S T U N D E V E L O P E D T I N A S S E T S • Stellar’s flagship Heemskirk Tin Project is the highest grade undeveloped tin deposit of significance listed on the ASX • Stellar owns 100% of all tin properties including Heemskirk • Five underground metal mines, three currently operating, within 30km of Heemskirk – significant sunk capital in associated infrastructure • Port of Burnie, 150km to the north, services all west coast mines and will provide access to world markets • Renewable power and water are nearby and accessible • Competitive market for services, mining and processing inputs and labour exists in Tasmania’s NW • Satellite projects at St Dizier and Mt Razorback add potential value to Heemskirk at low cost
4 ADVANCING MULTIPLE DEVELOPMENT OPTIONS T A S M A N I A – A U S T R A L I A ’ S L A R G E S T A N D M O S T P R O D U C T I V E T I N F I E L D W E S T C O A S T H E E M S K I R K S T D I ZI E R M T R A ZO R B A C K • JORC 2012 Resource of 6.25mt @ • JORC Resource of 1.2mt @ 0.7% tin • Mt Razorback contains two small • Similar style of mineralization to that historical tin mines – Razorback and 1.13% tin or 72,000t of contained tin • Underground development comparable mined at Mt Bishoff Grand Prize and a tailings dam • Potential for low cost open pit • Tailings have potential for upgrading to Renison Tin situated 18km to NE • Opportunity to stage development development (SR of 4:1) to saleable product • All weather road runs within 1km of St • Historical diamond drilling and through sequential mining of deposits and a modular processing plant Dizier and connects the deposit to a trench sampling of the Razorback pit • PFS level mining and metallurgy studies proposed processing plant at Zeehan floor have identified ore grade tin and a fast start optimization completed mineralization down to at least 100m • Mining Leases granted for 12 years • Geological and structural setting is • Significant exploration potential around similar to that at Renison Tin • 3km structure extends from known deposits, below historical Pb/Ag mines and along major structures Razorback to Grand Prize and contains untested tin in soil targets
5 HIGH GRADE CASSITERITE TIN RESOURCE J O R C 2 0 1 2 R E S O U R C E E S T I M A T E ( 2 0 1 6 U p d a t e ) Heemskirk Tonnage Total Sn Contained Cassiterite 1 Classification Deposit Cu Pb Zn S SG mt % Sn t % of total Sn % % % % mg/l Indicated Upper Queen Hill 0.47 1.15 5,000 91 0.12 1.30 0.81 13.80 3.72 Lower Queen Hill 0.82 1.42 12,000 99 0.03 0.22 0.23 17.91 3.45 Total Indicated 1.29 1.32 17,000 96 0.06 0.61 0.44 16.55 3.55 Inferred Lower Queen Hill 0.35 1.50 5000 98 0.04 0.14 0.09 16.9 3.31 Severn 4.03 0.97 39000 99 0.06 0.03 0.05 8.34 3.18 Montana 0.68 1.56 11000 96 0.07 0.72 1.18 17.8 3.68 Total Inferred 5.06 1.09 55000 98 0.06 0.13 0.25 10.23 3.26 Total Indicated + Inferred 6.35 1.13 72,000 97 0.06 0.23 0.29 11.48 3.32 1.cassiterite = (total Sn% - soluble Sn%)/total Sn% 2. block cut-off grade of 0.6% tin high grade cassiterite 3. tonnes rounded to reflect uncertainty of estimate 4. estimates prepared by Resource and Exploration Geology under JORC 2012
6 SATELLITE PROJECTS ADD RESOURCE POTENTIAL St Dizier Cassiterite 1 Classification Tonnage Total Sn Contained Soluble WO 3 Fe S % of total Sn mt % Sn t Sn % % % % Indicated 1.20 0.69 8,280 0.09 87 0.04 23.70 2.64 Inferred 1.06 0.52 5,512 0.22 58 0.05 22.22 1.81 Total Resource 2.26 0.61 13,786 0.15 75 0.04 23.00 2.25 1.cassiterite = (total Sn% - soluble Sn%)/total Sn% 2. block cut-off grade of 0.3% tin 3. tonnes rounded to reflect uncertainty of estimate 4. estimates prepared by Resource and Exploration Geology under JORC 2012 St Dizier Cross-Section
7 C O R P O R A T E O V E R V I E W SHARE PRICE YET TO REFLECT SOLID ACHIEVEMENTS AT HEEMSKIRK TIN C O M P A N Y O V E R V I E W • 100% owner of Heemskirk Tin Project, 150km south of Burnie, Tasmania • Stand- out high grade resource ( 1.13% Sn) with vision to be a major Australian tin producer • Metallurgical optimisation added to the project • Fast start lowered capex and reduced time to first production Financial information Share price (31-July-18) A$0.016 Number of shares 379.7m O W N E R S H I P R E F L E C T S S T R O N G T I N Market Capitalisation A$6.1m I N V E S T O R S U P P O R T Cash (30-Jun-18) A$1.2m Capetown S.A. 16.7% Debt (30-Jun-18) No Debt Bunnenberg Family 11.9% Enterprise value A$4.9m Directors & Management 2.1% 15m unlisted options (exercise prices A$0.06 to A$0.12, expiring on 20-Nov-19) and 59m A$0.05 options expiring on 18 May 2020 Top 20 Shareholders 52.2%
8 H E E M S K I R K I S T I N I N T A S M A N I A STELLAR RESOURCES LIMITED (ASX:SRZ) S T E L L A R R E S O U R C E S O V E R V I E W E X P L O R A T I O N P O T E N T I A L D A R E T O D R E A M I S H E E M S K I R K TIN IS A N EN ER G Y M ETA L W ITH A N O T H E R R E N I S O N ? A B R IG H T FU T U R E T H E I N V E S T M E N T O P P O R T U N I T Y D E V E L O P M E N T P L A N P R O V I D E S O P T I O N A L I T Y
9 T I N D E M A N D NEW TECHNOLOGY TO DRIVE TIN USE • Rio Tinto ranks tin as the metal best placed to benefit from The Next Growth Period for Tin is about to Emerge: new technologies. • Tin use in electrical and energy storage applications is easy to achieve and potentially disruptive • New uses of tin could have a major impact on market size
10 T I N D E M A N D BATTERY AND CHEMICAL USE ALREADY IMPORTANT • Global demand growth of 2% pa since 2012 • China represents 45% of global tin demand • Lead-acid battery use up 15% pa since 2012, 46% pa in China over the same period • Tin intensity in lead-acid batteries is still rising due to increased demand for hybrid vehicles • Chemicals also an area of strong growth - 4%pa since 2012 – now second largest end-use at 17% Hybrid EV
11 F U T U R E G R O W T H F O R T I N I N E V B A T T E R I E S POTENTIAL TIN USE IN 2 ND GENERATION EV BATTERIES I T A V I E W O F T I N ’ S R O L E
12 T I N D E M A N D ADVANTAGES OF USING TIN IN EV AND PV Increases energy density in battery anodes = increased battery life University of Alberta, Cornell University, Furukawa Group, University of Texas Improves conductivity of silicon and graphite anodes = improved cycle times Nissan, Daimler, Samsung applied for patents Stabilises lithium and sodium anodes in solid state batteries = improved safety Toyota, Japanese Car Industry Research JV, Penn State University Tin nano-particles for SnS, SnSC and SnCoC anodes = reduced battery cost China’s largest car company BYD conducting research Superior performance in PV straps = easier and cheaper to apply than silver EI Dupont, Samsung, Hitachi applied for patents Tin perovskite in PV cells = increased energy efficiency and improved economics University of Groningen research
13 C h i n a ’ s T i n M a r k e t i n 2 0 1 7 THE IMPORTANCE OF CHINA • Accounts for 45% of global demand – solder the largest end-use - lead- acid battery use growing the strongest • Net exports have increased to 9kt in 2017 in response to rising production and reduced export duty • Myanmar accounts for 38% of China’s raw material supply - but this source is now in decline • Reduced supply should see a decline in net exports and the possible emergence of China as a net importer
14 T I N S U P P L Y MINE PRODUCTION DECLINING • Excluding Myanmar, global mine production is 10% below its 2014 high • Predictable production (hard rock and corporate alluvial) has fallen the most • Hard rock underground has declined from 39% of supply to 32% in 3 years • All of the growth in 2016 and 2017 has come from Myanmar and artisanal alluvial mines in Indonesia, Nigeria, and the DRC • Looking forward, production from Myanmar is now declining and compliance requirements on artisanal alluvial production are restricting growth from this source ITA, WBMS, Stellar estimate
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