- 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.
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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.
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.
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.
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.
All financial information pertains to Australian Dollars unless stated otherwise.