Surefire Resources (ASX: SRN) ends Dec quarter with ‘outstanding’ Victory Bore PFS - Kalkine Media

Highlights

• In the December 2023 quarter, Surefire Resources raised AU$3.4 million.
• Pre-feasibility study for Victory Bore vanadium project delivered outstanding outcomes.
• The mineral resource was converted into an ore reserve - 93 Mt @ 0.35% V₂O₅, 5.2% TiO₂ and 19.8% Fe.
• An MOU was executed with the Ministry of Investment Saudi Arabia for developing a downstream processing facility at the Kingdom of Saudi Arabia.
• Subsequent to the quarter, SRN executed an MoU with a Saudi Arabian company and made a breakthrough in vanadium extraction.

Perth-based mineral exploration firm Surefire Resources NL (ASX: SRN) has a diversified project portfolio in highly prospective terrains in Australia.

The company has released its quarterly report for the period ended 31 December 2023. The three-month report details significant updates for the quarter, highlighting notable progress at its 100%-owned flagship Victory Bore Vanadium Project in Western Australia.

During the quarter, an amount of AU$3.4 million was raised by the company through a placement and a non-renounceable rights offer (NRRI).

Outstanding pre-feasibility study for Victory Bore

In December 2023, the company completed a pre-feasibility study (PFS) for the Victory Bore Vanadium Project with encouraging results. The company described the study outcomes as outstanding.

The study highlighted a pre-tax net present value (NPV_10%) of AU$1.708 billion, with an internal rate of return of 42.22% and a life of mine of 24 years. The pre-tax payback period is 2.4 years, based on a capital cost of AU$767 million and operation expenditure of US$254 per tonne of concentrate.

PFS outcomes (Image source: Company update)

The PFS comprised a mineral resource estimate (MRE) for the project from the previous MRE. The resource model remains the same and the reporting has been changed to consider a lower cut-off grade to 0.15% from 0.26% based on marginal cut-off grades ascertained at while conducting the PFS. Moreover, the report includes TiO₂, AI₂O₃, Fe and SiO₂ grades.

The PFS considered a pit optimisation on the basis of mining costs, product pricing and product mix. The pit optimisation determined that a cut-off grade of 0.2% V₂O₅ is sustainable.

The table below shows the updated MRE as of December 2023.

Image source: Company update

During the quarter, the mineral resource was converted to an ore reserve. In accordance with the JORC Code (2012), a maiden probable ore reserve of 93 Mt @ 0.35% V₂O₅, 5.2% TiO₂ and 19.8% Fe was reported.

MoU with MISA, Ajlan & Bros

The company’s strategy involves employing industry standard processing for various products to maximise their value and ensure a demonstrable and reliable low-risk business concept.

The company’s plan is to establish a mining and beneficiation operation at the Victory Bore mine site and to conduct downstream processing in Saudi Arabia.

Collaboration with the Kingdom of Saudi Arabia (KSA), which is a low fuel and power cost jurisdiction, provides the project with advantaged of lower operating costs and manufacturing final product for nearby markets. The KSA has a significant steel sector with demand for vanadium products.

To develop a downstream processing facility in KSA, the company had entered into a MoU with the Ministry of Investment Saudi Arabia (MISA) in August 2023.

In January 2024, the company signed a non-binding MoU with Saudi Arabia-based Ajlan & Bros Mining and Metals Company. To know details, read here.

Recently, Surefire also updated on the development of a breakthrough process for vanadium extraction directly from magnetite concentrate out of the Victory Bore project.

SRN shares traded at AU$ 0.010 in the early trading hours on 30 January 2024.