Source: SRN website
- Surefire Resources NL (ASX:SRN) has completed the Perenjori Iron Project review in light of the surging iron ore prices.
- The review determined the project’s current viability as a potential future iron ore producer with current resources.
- The Company plans to upgrade the current resource and follow it up with a feasibility study.
Western Australia-based explorer Surefire Resources NL (ASX:SRN) seems to be in a strong position to capitalise on the rallying iron ore prices. A well-timed market update from the company has notified about the completion of the Perenjori Iron Project review, in the wake of the booming iron ore market.
Iron ore futures prices on the Dalian Commodity Exchange, Source: Eikon Refinitiv
Perenjori Iron Project Review
Surefire Resources roped in geological consultants HGS Australia to carry out the review of the project, which is ideally located to take advantage of the existing road, rail, and port infrastructure.
The review comes eight years after a scoping study was conducted at the project in 2013. CSA Global conducted the resource in 2013 under the JORC 2004 compliances.
The review has determined the Perenjori Iron Project’s current viability as a potential future iron ore producer with current resources (JORC 2004) as depicted below-
Source: ASX update dated 25 February 2021
Metallurgical tests suggest that-
- High-quality concentrate can be produced, as per Davis Tube Recovery (DTR) tests.
- The final concentrate grade is registered more than 70%.
- The main ore zone showed an 84% to 86% Fe Yield.
- The Fe value at zero silica on this material is 69.66% (relative to Fe in pure hematite at 69.94% and pure magnetite at 72.4%).
More importantly, the review also identified significant iron ore exploration and resource potential, mainly in the form of magnetite Band Iron Formation (BIF) and to a lesser degree - detrital and supergene direct shipping ore.
Decoding Perenjori Iron Project Tenement Findings
The combination of aeromagnetic imagery available in tenements E70/5573, E59/2432, and extending the known resource holes along the strike in E70/5311 has the potential to increase the resource to over 500Mt of magnetite ore.
The key tenement with known resource is E70/5311-
- It is located ~16km north of the Perenjori township, 16km northeast of the siding at Bowgada, ~ 330km north east of Perth.
- Known Fe prospects are Alken, Feral, West Feral and East Feral.
- Core BIF Zone and Western Zone (Perenjori) have been the focus of past exploration.
- Extensive surface sampling was completed over the tenement along the main V-shape structure BIF ore zones.
Surefire Resources explains that Fe magnetite mineralisation is tied up with the extensive BIF as part of the asymmetrical synform sedimentary sequence. This was chemically precipitated, folded, and metamorphosed forming texturally coarsened finer magnetite crystals in a fine quartz crystals matrix.
On the operations end, the most recent reverse circulation holes were drilled in 2010 along the main Core BIF Zone. This was followed by two diamond holes in 2012. This tested the stratigraphy and thickness extent of the mineralised BIF zone besides obtaining the core for metallurgical test work was obtained.
Surefire Resources now plans to upgrade the current resource and follow it up with a feasibility study.
SRN was trading at $ 0.029 on 25 February 2021 (AEDT 2:11 PM).
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