ASX-listed Surefire Resources has kicked off negotiations with a string of potential transport and off-take partners for its Perenjori iron ore project in Western Australia. According to the company, it has a hefty iron exploration target that ranges from 870 million to 1,240m tonnes at the project with grading between 29 to a formidable 41 per cent iron.
The exploration target is held entirely within the company's existing 191.7 million tonne inferred mineral resource that grades 36.6 percent iron, implying an updated resource estimate would have huge upside.
Surefire says it is in the process of negotiating off-take agreements for magnetite concentrate with potential partners, including global commodity traders. The discussions will focus on mine scheduling, product quality parameters, off-take volumes, and pricing mechanisms. In addition, the Perth-based outfit says it is reviewing any risk mitigation concerns in advance of any formal contract.
According to Surefire, Perenjori has world-class infrastructure at its doorstep, with the Morawa-Perenjori rail line and the Karara rail spur both sitting a mere 15 kilometres away. The project also has access to the Geraldton port, that lies close to 220 kilometres away by rail. The company says the favourable position of the project permits a wealth of transportation options for the ore including trucking the material using the existing rail lines or building a spur line to the deposit.
The WA explorer has also begun talks with a third-party infrastructure provider to build, own, and operate a slurry pipeline and trans-shipment facility independent of Geraldton Port to help with planning for an expanded magnetite concentrate production profile.
According to management the proposed slurry pipeline will provide lower transportation costs than rail whilst also lowering the project's development capital requirements.
Surefire claims that ore from its Perenjori project has one of the highest iron content amongst its peers, with an inferred resource grade higher than other magnetite resources in the Mid West district.
The elevated grade means less ore needs to be mined to produce the product, driving up the ores economic value at both a mining and processing level.
Surefire Resources Managing Director, Vladimir Nikolaenko said:“Surefire is laying the groundwork to enhancing the Perenjori Iron Project’s viability through advancing its geotechnical, mining, processing, transporting, and marketing credentials. Putting in place the infrastructure and customers solutions puts in place the foundations for economic studies going forward.”
Surefire believes following processing its magnetite-based iron could reach a stellar 67.5 per cent iron. Given the rich grade, a successful round of talks could put the project further down the path to feeding a hungry industry with a growing focus on carbon neutral steel manufacturing.
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By Matt Birney
