Surefire Resources NL (ASX: SRN) has reported the commencement of a high-grade iron-ore production study for the production of 67.5% iron concentrate, with up to 85% iron yield on the Perenjori Iron Ore Project, located near the town of Perenjori in the southwest Murchison Province of Western Australia.
The company said that the planning is currently underway for drilling to upgrade the resource for feasibility studies.
Study on Perenjori project
The company said that the study will include the overall layout plan of the processing plant facilities, development of process flow-sheet, preparation of major items list of required process equipment with capacities, and identification of non-process plant infrastructure (e.g. water, power, road, camps, etc.).
Surefire said that the study would also include the overall capital costs (CAPEX) and Operating costs (OPEX) estimates, and plan for the export by rail from Perenjori to Geraldton and export through the Geraldton Port.
Focus on magnetite ore
The company said that the metallurgical test work indicated that the magnetite ore could be upgraded to close to 70% Fe with standard magnetite beneficiation techniques, and with a significant portion of the orebody achieving around 85% iron yield.
SRN said that the present study will focus specifically on the magnetite ore, to simplify the production of two products and to maximise the added value of producing a high Fe-grade feed material for the Asian steel industry.
MinRizon Projects Pty Ltd to complete the study
The company announced that the study will be completed by MinRizon Projects Pty Ltd, whose team members have many years of experience in the development of major projects for the iron and steel industry around the world.
SRN said that the study team would comprise Jim Cribbes (Overall Study Coordination), Brian Povey (Magnetite Process Plant Design), Steve Howard (Plant and Infrastructure Specification and Cost Estimation), and Allon Brent (Market Analysis).
Study based on previous MRE
The company said that the study would be based on the previous (JORC 2004) Inferred Mineral Resource estimate by CSA Global of 191.7 Mt@ 36.6% Fe, released by Quest Minerals Ltd (ASX: QNL), 27 September 2013, and will build upon the Scoping Study completed by Mintrex Pty Ltd (“Mintrex”), also in 2013.
The company reported that 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.
SRN also noted that 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).
The company said that based on the interpretation of available aeromagnetic imagery and through extrapolation of existing drilling, it is estimated that the tenements have the potential to host >500Mt of iron-ore that may be defined through further, step-out, resource drilling.
“Since 2013, there has been a significant increase in the demand for and value of high-grade iron concentrates”
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.”
Image Source: Surefire Resources NL