Global Tin Price Increase Is Perfect Timing for Heavy Rare Earths Limited (ASX: HRE) Acquiring the Prospect Hill Tin Project, South Australia - DYOR Alert.
- Noel Ong
- Aug 14
- 6 min read
Updated: 4 days ago
Announcement
Heavy Rare Earths Limited (ASX: HRE) has entered into a binding Term Sheet with Havilah Resources Limited (ASX: HAV) to acquire an 80% interest in all mineral rights—excluding uranium—at the Prospect Hill project in South Australia. The project lies within the Mt Painter/Mt Babbage Inliers, a subregion of the Curnamona Craton that hosts significant polymetallic mineralisation dominated by tin (Sn), and is geologically comparable to the Gawler Craton in terms of mineralisation style and igneous history (Figure 1).
This transaction grants HRE access to South Australia's most advanced tin target—South Ridge—offering a critical opportunity to fast-track development in a rising tin market.
Figure 1: Location of HRE projects in the Curnamona Craton, South Australia. (source: HRE)
Key Highlights
🔹 South Ridge Tin Prospect – A High-Grade, Undervalued Asset
Historic drilling at South Ridge confirmed tin mineralisation across a 500 m strike length and to depths of up to 120 m.
Key high-grade intercepts include:
3m @ 4.85% Sn from 44 m (PHRC03)
5m @ 3.32% Sn from 84 m (PHRC55)
6m @ 2.33% Sn from 14 m (PHP-15)
Tin is hosted primarily as cassiterite, with petrology and metallurgy indicating ~80% recovery using gravity processing.
🔹 Regional Geology Context – Mt Painter/Mt Babbage Inliers
The Prospect Hill project lies on the northwestern margin of the Palaeo-Mesoproterozoic Curnamona Craton, a well-endowed geological province rich in copper, REEs, and uranium (Figure 2).
Figure 2: Regional geology of Palaeo-Mesoproterozoic Mt Painter and Mt Babbage Inliers. (source: HRE)
Mineralisation is associated with Mesoproterozoic granitoid intrusions (~1560 Ma) into the Petermorra Volcanics (Figure 3).
Tin-rich systems here are structurally complex, hosting multiple mineralisation styles—shear zones, tourmaline pipes, and skarn-like zones—often associated with fluorine, copper, uranium, and REEs.
The geology shares strong parallels with the nearby Gawler Craton and international analogues like the Zaaiplaats tin field in South Africa.
The region’s complex structure, including a major E–W fault cutting through the project area, enhances its mineral potential and diversity.
Figure 3: Summary of outcropping geology in EL5891 and location of Sn prospects. (source: HRE).
🔹 Strategic Transaction Structure
Under the terms of the agreement, HRE will invest a minimum of $1.5 million over a three-year period, which includes 2,500 metres of drilling within the first 18 months and a further 1,250 metres in the following 18 months. Upon meeting these expenditure and drilling milestones, HRE will earn an 80% interest in all minerals (excluding uranium) across the Prospect Hill project.
Havilah will retain a 20% interest, which will be free-carried through to the completion of a Bankable Feasibility Study (BFS). In addition, HRE has committed to reimbursing Havilah $1.8 million in historical exploration costs, either from future project cash flows or earlier at HRE’s discretion.
🔹 District-Scale Exploration Upside
Additional prospects—Fly Hill, Central Ridge, Black Rock—demonstrate near-surface high-grade mineralisation.
Surface rock samples at Black Rock returned up to 58% Sn.
Potential for “pipe-style” tin bodies associated with black tourmaline and silica remains underexplored.
pXRF soil sampling and trenching programs support continued drill targeting beyond South Ridge.
🔹 Tin Market Catalysts and Critical Mineral Designation
Tin has been officially designated a critical mineral by major global economies, including the United States, European Union, Japan, and Australia, reflecting its growing importance in strategic supply chains. Its applications are diverse—ranging from solder in electronics to chemical processes and renewable technologies—making it essential to the global technology and clean energy sectors. Prices remain strong at approximately US$34,000 per tonne, underpinned by persistent supply constraints and robust forward demand through to 2030. In this context, the Prospect Hill project aligns directly with international policy objectives to secure stable, sustainable sources of critical and technology-enabling metals.
HRE’s non-executive Chairman, John Byrne, commented:
“Prospect Hill is not just a historical asset—it’s a high-quality tin system with the potential to become a near-term producer. Our ability to move quickly reflects the maturity of the project and our technical confidence.”
Dr Chris Giles, Technical Director of Havilah, commented:
“We are pleased to partner with HRE again—this deal unlocks tin potential at Prospect Hill while retaining upside through our equity and project interest. Their proven exploration discipline and shareholder alignment give us confidence in their ability to deliver.”
Samso Concluding Comments
Heavy Rare Earths Limited is building a portfolio of projects that will drive its new strategy. Acquiring the Prospect Hill project that combines historical high-grade intercepts, metallurgical confidence, and multi-style exploration upside—all underpinned by a capital-efficient earn-in structure- is not a bad move.
For ASX investors, the story here is scale plus simplicity. South Ridge isn’t a greenfields wild card—it’s a known tin system, drill-tested and ripe for a resource estimate. Combine that with tin’s re-emergence as a critical mineral of geopolitical and technological relevance, and Prospect Hill becomes more than just a regional play—it’s a strategic foothold in the coming clean-tech supply race.
Figure 4: The price chart for tin as of 8th August 2025. (source: Trading Economics).
If HRE delivers on its intent, South Ridge could rapidly emerge as Australia’s next critical tin development. The broader Prospect Hill system, with its pipe-style and pod-style mineralisation, may well be the real prize. Looking at the current tin price chart (Figure 4), the momentum for a tin narrative on the market could be perfect timing for HRE. Heavy Rare Earths have a market capitalisation of just under AUD $10M and if the tin price momentum fits well with the advancement of the Prospect Hill project, the perfect storm could be near.
I think this is a must DYOR.
The Samso Way – Seek the Research
The Prospect Hill deal is built on a deep dataset—90 drill holes, 4,500+ soil samples, metallurgical studies, and petrology—not hype. It is a reminder that in mineral exploration, past work often lays the foundation for future success. Investors should take note of the quiet efficiency of this agreement and the technical substance behind the story.
Our mission is simple: cut through the noise and spotlight what matters—genuine stories, grounded insights, and real opportunity.
Our content is well-researched and is only created if the team sees a merit in discussing the company or concept. Investors can explore our three core platforms:
There may be numerous paths to success in investing, but the common thread among successful individuals is that they remain committed to making informed decisions. Equip yourself with the right knowledge and tools, and you will be well on your way to achieving your financial goals.
Most importantly, investors need to be absolutely diligent in understanding their own risk-reward tolerance and capabilities. Never bite off more than you can chew. As they say, Rome wasn’t built in a day, and the Great Wall stood because it took centuries to complete.
The Samso Philosophy:
Stay curious. Stay sharp. And remember—digging deeper always uncovers the real value.
In Life, there is no such thing as a Free Lunch.
Happy Investing, and the only four-letter word you need to know is DYOR.
To support our independent nature of our work, please head over to our Support Page and give us a helping hand in any of the ways listed. This is a new initiate for the Samso Platform, and it was always the concept of Samso when we started this journey in 2018.
Disclaimer
The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints.
Share to Grow: Your Bonus
Samso has just released an eBook: How to Add Value to your Share Portfolio
A lesson on geological models sought by mining companies that gives insight and an understanding of which portfolios are better - and potentially more lucrative – investments. Click here to download this eBook.
If you find this article informative and useful, please help me share the information. I try and write about topics that are interesting and have the potential to be of investment value. It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and has a need to share your journey, please contact me at noel.ong@samso.com.au.
Samso is a trusted platform that equips dedicated investors with up-to-date industry knowledge and insights from top CEOs and thought leaders. By staying informed on business advancements and market trends, investors can enhance their financial decisions through a combination of expert guidance and their own research.
Comments