Surefire Resources NL (ASX:SRN) is exploring transport and offtake options for the wholly-owned Perenjori Iron Project in Western Australia.
The company is progressing magnetite concentrate offtake negotiations with potential partners, including global commodities traders.
In addition, Surefire has also initiated talks with a third-party infrastructure provider to build, own and operate a slurry pipeline and transhipment facility independent of Geraldton Port.
Looking ahead, Perenjori is well placed to deliver low carbon magnetite concentrate to the next generation of carbon-neutral steel industry.
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“Enhancing viability”
“Surefire is laying the groundwork to enhancing the Perenjori Iron Project’s viability through advancing its geotechnical, mining, processing, transporting and marketing credentials.
“Putting in place the infrastructure and customers solutions puts in place the foundations for economic studies going forward.”
Infrastructure upgrade
The Perenjori Iron Project is in an infrastructure-rich location, with existing rail (Geraldton Port terminus) and power within 15 kilometres of the project.
To facilitate the planning for an expanded magnetite concentrate production profile, Surefire has initiated talks with a third-party infrastructure provider to build, own and operate a slurry pipeline and transhipment facility independent of Geraldton Port.
A slurry pipeline could deliver lower transport costs than rail while at the same time lowering the project’s capital requirements for development.
Offtake negotiations
Surefire is progressing magnetite concentrate offtake negotiations with potential partners, including global commodities traders.
Notably, mine scheduling, product quality parameters, offtake volumes and pricing mechanisms are key to those talks.
Additionally, the offtakers' risk mitigation considerations are being addressed in advance of any formal contract.
Enabling carbon-neutral steel mills.
Magnetite is increasingly being recognised as the iron ore feed that will help decarbonise the steel industry.
It presents an opportunity to supply higher grade iron than the traditional haematite blast furnace feeds while at the same time, delivering an energy richer feed.
Encouragingly, the Perenjori Iron Project can deliver low carbon magnetite concentrate to this next generation of environmentally-friendly steel mills.
About the project
Perenjori Premium Iron Project has an exploration target of 870 to 1,240 million tonnes at a grade of 29% to 41% iron.
The inferred resource grade of 36.6% iron is 2% to 6% higher than other magnetite resources in the Mid-West region.
At the mining and processing level, this higher grade means less ore needs to be mined to produce the product, enhancing the economic value.
Notably, metallurgical test-work has shown a premium magnetite concentrate grade of up to 69.6% iron, with low deleterious elements, can be produced at an industry-standard grind size.