Surefire Resources NL (ASX:SRN) has executed a heads of agreement with DRA Global Ltd for a total engineering services package for its 100%-owned Victory Bore Iron-Vanadium Project in Western Australia, which will see the project from feasibility through to construction and operation.
This agreement comprises the delivery of Australian and Saudi Arabian feasibility studies, engineering, EPCM (engineering, procurement and construction management) and operations.
The agreement with DRA Global follows Surefire’s positive pre-feasibility study results, which determined a US$1.1 billion project net present value (NPV10%), a 42% internal rate of return (IRR), and a 2.4-year payback period over a 24-year mine life.
Strong support from global tier-1 group
DRA Global is an international multi-disciplinary engineering, project delivery and operations management group, predominantly focused on the mining, minerals and metals industry. The group has demonstrable experience in minerals processing globally, including in the Kingdom of Saudi Arabia.
Under the agreement, the parties intend to work together with DRA providing services to Surefire to further its upstream and downstream processing, utilising DRA’s significant skills, experience and relationships in the minerals processing industry.
This provides Surefire with a development runway through to operational readiness for its flagship project and a major group for support in its discussions with Saudi Arabian and European groups.
Surefire Resources managing director Paul Burton said, “This is a significant long-term agreement for the company, providing strong support from a global tier-1 group for its development strategy and focus on delivering the Victory Bore Project.
“DRA Global provides a complete delivery package with the added advantage of experience in working on mineral processing projects in Saudi Arabia and in vanadium processing. We look forward to working closely with DRA Global and the advantages that this brings to the company and shareholders.”
A value-adding operation
Surefire is seeking to develop Victory Bore as a low capital cost operation, with value-added downstream processing and production of high-value products in a low energy cost jurisdiction.
Its development strategy involves a mine and beneficiation operation at the Victory Bore site to produce a high-grade vanadium concentrate. This will then be shipped to the Kingdom of Saudi Arabia, where downstream processing of the magnetite concentrate will occur to produce high-value and diversified end products of vanadium pentoxide, vanadium electrolyte, ferro-vanadium, pig-iron, ferro-titanium and high-purity iron oxide.
Surefire also reports that it is progressing an international process for establishing interest and funding and offtake for delivery of the project.
Discussions are ongoing with interested parties and include groups in Saudi Arabia, the Middle East and Europe. The company notes that this is in addition to the incentives available within Saudi Arabia for processing of critical mineral resources of up to 75% of capital costs.