Sponsored

Surefire Resources (ASX:SRN) Initiates Production Study at Perenjori Iron Ore Project

Summary

  • Surefire Resources NL (ASX:SRN) has initiated a high-grade iron-ore production study on the Perenjori Iron Ore Project.
  • The high-grade iron-ore production study has commenced into production of 67.5% iron concentrates with iron yields up to 85%.
  • Surefire has also started planning a drilling campaign to upgrade the mineral resources for the feasibility study.
  • During the week, iron ore 1-month futures on the Dalian Commodity Exchange surged to the record high of CNY1,400.5 per tonne.

Base metals-focused explorer Surefire Resources NL (ASX:SRN), in an upbeat market update, announced the commencement of a high-grade iron-ore production study at the Perenjori Iron Ore Project.

The significant update on the Perenjori Iron Ore Project in the southwest Murchison Province of Western Australia coincides with the iron ore price rally, which further bolsters the potential of the project.

Notably, the Perenjori Iron Ore Project enjoys an opportune location as it is situated less than 15 kms from the existing rail link between Perenjori and Geraldton.

MUST READ: Surefire Resources’ (ASX:SRN) Share Surges After Encouraging Results From Yidby Road Gold Project

Copyright © 2021 Kalkine Media

High-Grade Iron-Ore Production Study

The study will be undertaken by MinRizon Projects Pty Ltd on the basis of the previously reported JORC 2004 compliant Inferred Mineral Resource of 191.7 million tonnes at a grade of 36.6% Fe. The mineral resource estimates were released by Quest Minerals Ltd (ASX:QNL) on 27 September 2013. The production study will build on the Scoping Study of the project, which was also completed in 2013.

MUST READ: Surefire Resources completes first-phase drilling at Yidby Road, exploration begins at Perenjori

Premium products amenable to international standards

The metallurgical test work had showcased that using the standard magnetite beneficiation techniques, the magnetite ores could be upgraded to over 70% Fe grade along with a substantial portion of the orebody with over 85% iron yield. Despite the presence of haematite ores, which is associated with the magnetite ores within the same ore bodies, the current study will focus only on magnetite ores to ease and structure the production of two products.

The study aims to maximise the value by producing a higher Fe-grade precursor for the Asian steel industry.

Following the completion of the study, the outcomes will be assessed to upgrade the existing mineral resource base to JORC 2012 standards via follow-up drilling programs. The feasibility studies will proceed after that.

READ HERE: Surefire Resources Aims To Up The Ante at Gold Projects

Further, the project holds substantial exploration potential to expand and extend the mineral resources on the basis of the known extensions of the BIF associated magnetite ore in E70/5311 and for the detrital and supergene (Haematite) direct shipping ore (DSO).

As per the current interpretation of the aeromagnetic imagery and by extrapolating the existing drilling, the tenements hold the potential to host more than 500 million tonnes of iron ore which may be defined further by step-out resource drilling.

High-Grade Concentrate Product

The production study would include the below metrics-

  • The overall layout plan for processing facilities.
  • Process flow-sheet development.
  • Preparation of major items for the process equipment with capacities.
  • Identification of required non-process plant infrastructure.
  • Estimation of capital and operating costs.
  • Planning for the transportation by rail from Perenjori to Geraldton.
  • Export from the Geraldton port.

ALSO READ: Surefire Resources going great guns at Yidby Road gold prospect

Iron Ore Rallies to record high levels

Iron ore 1-month futures on the Dalian Commodity Exchange Source: Eikon Refinitiv

Iron ore prices continue to rally on the Chinese Dalian Commodity Exchange on the back of rising demand from the Chinese steel industry and prevailing supply issues. The iron ore 1-month futures surged to the record high level of CNY1,400.5 per tonne on 11 May 2021 and is currently trading at CNY1,360 a tonne (13 May 2021, 12:22 PM AEST).

SRN traded at $0.023 a share on 13 May 2021 at 12:22 PM AEST with a market capitalisation of $25.23 million.

SUGGESTED READ: How the recent gold acquisitions might propel Surefire Resources’ growth

All financial information pertains to Australian Dollars unless stated otherwise.


Disclaimer
The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK