Surefire has more irons in the fire than just gold
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Special Report: Surefire has more gems in its portfolio than just the high-grade Yidby gold project that sent its share price up 2150 per cent in 2020. The junior explorer also has a highly prospective iron ore project it is gearing up to advance.
With the recent run in the iron ore price, Surefire Resources (ASX:SRN) has decided now is the right time to look at advancing its Perenjori iron ore project in Western Australia.
“We will be re-assessing the Perenjori project with a new scoping study considering that the parameters have changed since a study was completed in about 2012 by Quest Minerals,” Surefire managing director Vladimir Nikolaenko said.
“The study then was based on an iron ore price of $120 a tonne.”
The price is now sitting at just under $200 a tonne in Aussie dollars, making it much more attractive for Surefire to progress the project.
Surefire says the Perenjori project has significant iron ore potential associated with the “V-shaped”, tightly folded and thrust stacked greenstone belt located within the project.
The project hosts the iron ore-rich Koolanooka Greenstone Belt that forms part of the highly prospective and fertile Yilgarn Craton.
The eastern thrust belt contains two main banded iron formation (BIF) units. The Core BIF zone spans 3.7km in length and 55m wide, while the western limb also contains a significant BIF unit measuring 80m thick and 2.8km long.
The project hosts a resource of 191 million tonnes at 36.5 per cent iron, which was defined by project operator Quest Minerals in 2013.
Testwork done during a previous scoping study demonstrated Perenjori could produce a high-grade and acceptably clean 65 to 70 per cent magnetite concentrate.
There are two main types of iron ores – hematite and magnetite. Haematite is a higher grade in the ground, while magnetite deposits are large and quite low grade – but produce very high-grade products.
With the depleting direct shipping ore — the stuff that you can just dig up and ship — in WA’s Pilbara, end-users like steelmakers in China are increasingly demanding more processed ores like magnetite.
About a third of the world’s steel is made from processed or magnetite-rich ores and globally there’s a bunch of big successful mines that have been producing for years.
Surefire Resources is now evaluating previous work done on the Perenjori project and the significant upside resource potential.
The company is also planning further resource drilling and more advanced studies.
This article was developed in collaboration with Surefire Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.