Surefire Resources NL (ASX:SRN)'s shares have surged 20% higher intra-day to 1.8 cents after executing a memorandum of understanding (MOU) with Saudi Arabia’s Ministry of Investment (MISA) for mineral processing opportunities of high-grade ore from its Victory Bore vanadium and high purity alumina (HPA) project in WA.
The MOU provides Surefire with a clear pathway for maximising value from the Victory Bore project following a development strategy conducted by the company for a mining and beneficiation operation at the Victory Bore mine location, and then transport of high-grade concentrate to a jurisdiction where power costs are low, infrastructure for downstream processing is present, and a large market exists for products.
Surefire managing director Paul Burton said “This is a very significant milestone and achievement for the company and provides a clear development pathway for the Victory Bore Project as we progress the Pre-Feasibility Study.
“The KSA (Kingdom of Saudi Arabia) is a rapidly developing region with demand and incentives for critical mineral resources.
“We welcome the engagement with MISA and look forward to working closely with them to achieve our mutually beneficial development plans.”
Victory Bore development and logistics.
The MOU defines and outlines the development strategy for a mine and beneficiation operation at the Victory Bore site, where high-grade vanadium concentrate is produced for transport to Geraldton Port, and then shipping to Port Damam, KSA.
Downstream processing of the concentrate would then occur in nearby industrial sectors to produce high-value end products of vanadium pentoxide (V2O5), vanadium electrolyte (VE), ferro-vanadium (FeV), and bi-products of pig-iron, ferro-titanium and also potential for Surefire’s HPA.
Magnetite concentrate, shipping and downstream processing in KSA and products.
The MOU terms confirm the understanding to progress the following:
- The processing of Victory Bore concentrate and other vanadium-bearing feedstock in KSA will create investment, processing capability, employment, and production of high-value commodities;
- MISA will provide assistance to Surefire in importing and processing its mineral concentrate;
- MISA will provide investment opportunities and incentives and assist Surefire to secure binding agreements for funding and development;
- MISA will introduce partners for production facilities;
- Surefire will introduce its preferred engineering partners to design and construct the facilities;
- Surefire will also consider the establishment of a High Purity Alumina (HPA) production facility in KSA; and
- Surefire will have access to other vanadium opportunities in KSA including fly-ash and hard rock vanadium resources.
Why KSA?
The Kingdom of Saudi Arabia (KSA) is a low power and fuel cost jurisdiction, providing Surefire with significant advantages of reduced operating costs.
It also has a significant steel sector with demand for vanadium products including vanadium electrolyte for vanadium redox batteries, all of which are currently not produced in KSA.
Saudi Arabia is one of the world’s fastest growing countries with a manufacturing sector growing an average of 7.5% per annum.
The sector is at the forefront of the Kingdom’s economic diversification, localisation, and privatisation efforts and is now the third largest non-oil contributor to the Saudi economy.
Read: Surefire Resources on course with PFS for Victory Bore Vanadium Project
Surefire is currently completing a pre-feasibility study (PFS) on the Victory Bore deposit and expects this to be finalised by November 2023.
Under the PFS, the company is engaging with relevant transport and shipping groups so that this development strategy will be included in the PFS outcome.
The next steps will include site visits to KSA, introductions by MISA to identified companies for joint venture and selection and agreement with preferred engineering groups that can supply vanadium processing plant and equipment.