- In light of the rising iron ore price, Surefire Resources (SRN) has completed a review of its Perenjori Iron Project in WA
- Geological consultants HGS Australia assessed the project's potential to be a significant iron ore producer
- Perenjori has an inferred mineral resource of 192 million tonnes at 36.6 per cent iron, but there's potential for this to increase to over 500 million tonnes
- Metallurgical tests also show high-grade premium concentrate of up to 70 per cent iron can be produced at an 86 per cent yield
- Based on this review, Surefire plans to upgrade the mineral resource and conduct a feasibility study
- Surefire is down 5.88 per cent and shares are trading at 3.2 cents
Surefire Resources (SRN) has completed a review of its Perenjori Iron Project in light of the rising price of iron ore.
The iron ore price is currently sitting at US$164.53 (roughly A$206.54).
The review was conducted by geological consultants HGS Australia, which assessed the project's viability as a potential iron ore producer.
The Perenjori Iron Project is located near the town of Perenjori, in the Northern Wheatbelt of Western Australia.
Metallurgical tests suggest high-quality concentrate of up to 70 per cent iron can be produced at an 86 per cent yield.
Importantly, HGS Australia identified significant exploration and resource potential for iron ore that's mainly in the form of magnetite banded iron formation. However, there's also detrital and supergene direct shipping ore.
It has a JORC 2004 inferred mineral resource of 192 million tonnes at 36.6 per cent iron. Although, a combination of aeromagnetic imagery and the extension of resource holes along strike of E70/5311 have the potential to increase the resource to over 500 million tonnes of magnetite ore.
Based on these positive metrics, Surefire plans to upgrade the current mineral resource, which will be followed up with a feasibility study.
Company shares have dropped 5.88 per cent and are trading at 3.2 cents at 11:46 am AEDT.