Surefire Resources (ASX: SRN) reports 4N HPA production from Victory Bore, shares soar

Highlights 

• Test work using material from the Victory Bore project confirmed the production of 4N HPA, and the highest value achieved stood at 99.992%.
• SRN has been exploring HPA production as a secondary product to vanadium from the project.
• SRN is considering undertaking further test work and investigating end-user commercial discussions.
• Victory Bore PFS is due for completion by November.

Mineral explorer Surefire Resources NL (ASX: SRN) has shared an exciting update, post which the company’s shares soared on the ASX.

From its flagship Victory Bore vanadium project, the company has been exploring production of high purity alumina (HPA) as a secondary product to vanadium. Latest test work has confirmed the production and synthesis of 4N HPA from the project with the highest value of 99.992%.

4N HPA is an in-demand material with applications in LED production, coatings for lithium-ion battery separators and synthetic sapphire production. Referring to the growing HPA markets, SRN highlighted the current 4N products’ pricing of up to US$25,000-40,000/tonne.

The Victory Bore deposit is 400km from Geraldton Port in Western Australia. The deposit contains exceptionally high aluminium oxide (up to 31.4% Al₂O₃) in the waste rock, providing the company with a low-cost feedstock for HPA production, indicates SRN.

Background of HPA test work

Surefire contracted Lava Blue Ltd in March 2023 to conduct laboratory test work to identify a technique to produce HPA as an additional product from its Victory Bore project.

The following stages were undertaken in the test work –

Data source: Company update

Six 2-3kg samples were provided to Lava Blue for testing. The samples were gathered from those RC drill holes where AI₂O₃ content was high.

The testing done by Lava Blue confirmed 4N HPA production. According to the ASX update, the projected alumina purity was 99.998%, and the actual alumina purity was 99.992%. The difference occurred due to silicon impurity.

The company expects refinement and optimisation of the Lava Blue processes used for treating the material may improve this value.

If the company achieves a 5N product, Surefire expects to become one of the highest purity producers.

PFS completion due by November

The company is now considering undertaking the next phase of test work and explore end user commercial discussions.

Currently, SRN is conducting a pre-feasibility study at its 100%-owned Victory Bore project that is expected to be wrapped up by November 2023.

SRN share price soar

Share price of SRN surged by 23.52% to trade at AU$0.021 apiece on 25 July 2023 at the time of writing.