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Surefire Resources begins high-grade iron ore production study at Perenjori Iron Ore Project amidst strong market

Last updated: 16:21 13 May 2021 AEST, First published: 15:54 13 May 2021 AEST

Surefire Resources NL - Surefire Resources begins high-grade iron ore production study at Perenjori Iron Ore Project amidst strong market
The study will be completed by MinRizon Projects

Surefire Resources NL (ASX:SRN) (FRA:GBL) has started a high-grade iron-ore production study on the Perenjori Iron Ore Project, near the town of Perenjori in the southwest Murchison Province of Western Australia. 

The study will be completed by MinRizon Projects Pty Ltd, based on the previous (JORC 2004) inferred mineral resource estimate by CSA Global of 191.7 million tonnes at 36.6% iron, released by Quest Minerals Ltd in 2013 and will build upon the Scoping Study completed by Mintrex Pty Ltd. 

Metallurgical test work indicated that the magnetite ore could be upgraded to close to 70% iron with standard magnetite beneficiation techniques, and with a significant portion of the orebody achieving around 85% iron yield. 

Opportunity to develop Perenjori project

Surefire managing director Vladimir Nikolaenko said: “Since 2013, there has been a significant increase in the demand for and value of high-grade iron concentrates, and this is reflected in the iron-ore price that has increased substantially since that time.

“An opportunity exists for Surefire to undertake the development of the Perenjori project to meet that demand with a premium iron-ore product.”

Focus of the study

The study will focus specifically on the magnetite ore to simplify the production and to maximise the added value of producing a high iron-grade feed material for the Asian steel industry.

Based on the outcomes of the study, the company will look to upgrade the resource to JORC 2012 indicated through additional drilling, to allow feasibility studies to proceed.

Besides this, there is significant exploration potential to further expand the resource based on identified extensions to the BIF associated magnetite ore in E70/5311, and also for detrital and supergene (Haematite) direct shipping ore (DSO).

Interpretation of available aeromagnetic imagery and through extrapolation of existing drilling, it is estimated that the tenements have the potential to host more than 500 million tonnes of iron ore that may be defined through further, step-out, resource drilling.

High-grade iron concentrate production

The study will include the overall layout plan of the processing plant facilities, development of process flowsheet and the preparation of major items list of required process equipment with capacities, identification of non-process plant infrastructure such as water, power, road, camps, among others.

It will also focus on overall capital costs and operating costs estimates and plan for the export by rail from Perenjori to Geraldton and export through the Geraldton Port, which lies within 15 kilometres of existing rail link between Perenjori and Geraldton.

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