() (FRA: GBL) scoping study for the Perenjori iron project in Western Australia verified the economic potential of the project, indicating a low-capitalization operation producing high quality magnetite concentrate.

The scoping study, which was undertaken by MinRizon Projects Pty Ltd, gives the board of directors the comfort to move the project forward, with Managing Director Vladimir Nikolaenko saying: “Surefire is delighted with the results of the scoping study. . “

“Confident” to move the project forward

He said: “The technical assessment has already indicated that the ore can produce a high quality magnetic concentrate which is attractive to the market.

“This preliminary first pass economic assessment has now given the board of directors assurance that the Perenjori iron project is commercially attractive.

“Surefire can now confidently plan to move the project forward. “

Considerations for Scoping

The scoping study, based on an inferred mineral resource of 191.7 million tonnes at 36.6% iron estimated by internationally renowned consultants CSA Global, was also based on metallurgical work supervised by Mintrex Pty Ltd.

Further testing will be performed during the pre-feasibility study phase to confirm the conclusions.

This study examined the use of conventional extraction, enrichment and transport processes and focused on enrichment and transport components while optimizing the pit in support of mining. open air is planned.

Location

The Perenjori railway project is conveniently located approximately 15 kilometers from the Morawa-Peronjori main railway line and the Karara railway branch.

The rail distance to the Port of Geraldton is 219 kilometers and the Three Springs-Golden Grove transmission line is less than 8 kilometers from the deposit.

There are many towns in the district that can provide manpower for the development of the project.

Extraction method

Conventional open pit methods using standard drills and blasts, a shovel and truck will be used to deliver the magnetite ore to the enrichment plant and the waste to landfills.

Nominal contract mining costs were used.

Enrichment Stream Sheet

The ore will be enriched using standard crushing and two-pass grinding and magnetic separation. A coarser magnetic separator will use a 220 µm feed, the magnetic material passing to a secondary AG crusher and a fine magnetic separation circuit using a P80 grind size of 35 µm.

Weight recovery is expected to be 44% with 85% iron yield.

Transport

The project has access to rail lines to the north and south, both within 15 kilometers.

A branch line and trucking options to the head end were considered.

The capital expenditure and operating expenditure estimates for the two scenarios have a similar effect on the net present value (NPV) of the project in the precision of the cost estimate.

Port storage and retrieval facilities at Geraldton to service Panamax sized vessels are included in the costs, however, access to port facilities will need to be negotiated.

Estimation of investment and operating costs

A high-level NPV-based financial model was developed to assess the economic viability of the project.

The cost estimates were judged with an accuracy of +/- 35%.

While regulatory guidelines discourage the publication of extraction and production rates and financial forecasts without further study, the scoping study has strengthened the board’s confidence in the ability of this project to provide a magnetite of high competitive quality with an economically attractive return on investment.

Development time

No development schedule has been set at this stage.

Surefire plans to undertake additional resource definition work, including ensuring that the declared inferred resource is converted to the JORC (2012) standard.

The company has sufficient financial means to undertake this work.