- Surefire Resources (SRN) begins negotiations with potential transport and off-take partners for its Perenjori iron project in Western Australia
- Talks are underway with infrastructure provides to develop and operate a slurry pipeline to provide a cost effective transport option to rail
- Surefire is also in the process of discussing magnetite concentrate off-take deals with potential partners
- Given its high-grade iron ore content, SFR believes the project is well placed to supply a carbon neutral steel industry
- Shares have been trading 21.4 per cent higher at 1.7 cents at 12:55 pm AEDT
Surefire Resources (SRN) has begun negotiations with potential transport and off-take partners for its Perenjori project in Western Australia.
Earlier this month, the company told investors the project had an exploration target of 870 to 1,240 million tonnes at a grade of 29 to 41 per cent iron that may add to its existing Inferred Resource of 191.7 million tonnes at 36.6 per cent.
To facilitate the planning for an expanded magnetite concentrate production profile, Surefire has begun talks with a third party infrastructure provider to build, own, and operate a slurry pipeline and trans-shipment facility independent of Geraldton Port.
The project is located near existing railway infrastructure which provides a terminus to the Geraldton port however the company believes a slurry pipeline could deliver lower transport costs than rail, while also lowering the project’s capital requirements for development.
Surefire has also initiated talks with potential partners for magnetite concentrate off-take from the project.
According to the company, ore from its Perenjori project has one of the highest iron contents amongst its peers with the Inferred Resource grade higher than other magnetite resources in the Mid-West district.
At the mining and processing level, Surefire said this higher grade means less ore needs to be mined to produce the product, “significantly enhancing its economic value”.
Moreover, SFR believes the project can deliver low carbon magnetite concentrate into the next generation of environmentally friendly steel mills.
Off-take agreements will consider mine scheduling, product quality parameters, off-take volumes, and pricing mechanisms.
The off-taker’s risk mitigation considerations are also being addressed in advance of any formal contract.
Company shares were trading 21.4 per cent higher at 1.7 cents at 12:55 pm AEDT.