Funding and Partnership Deals Will Make or Break Surefire’s Critical Minerals Ambitions

Victory Bore Project: Strategic Momentum Builds

Surefire Resources NL has reported significant progress in advancing its flagship Victory Bore project, located in Western Australia's Mid-West region. The company announced a formal Expression of Interest (EOI) from HMS Bergbau AG, a leading German commodities trading group, for the offtake of vanadium and titanium products. This development marks a critical step toward securing long-term strategic partnerships and funding support, particularly targeting European markets amid Germany's recent €1 billion Raw Materials Fund initiative aimed at reducing dependency on Chinese critical mineral supplies.

The Victory Bore project boasts a substantial mineral resource estimate of 464 million tonnes at 0.39% V2O5 and 5.12% TiO2, with an ore reserve of 93 million tonnes. The project’s pre-feasibility study, completed in December 2023, outlined a 24-year mine life with an NPV10 of AU$1.7 billion and an IRR of 42%. Surefire is progressing mining licence applications and environmental and heritage surveys, while also advancing plans for offshore processing facilities in Saudi Arabia to leverage lower operating costs and proximity to steel sector demand.

Yidby Project: New Targets and Drilling Success

The Yidby Gold Project continues to reveal promising exploration results, with recent drilling extending the known gold system. Surefire reported a new 20-meter intersection grading 1.73 grams per tonne gold, confirming the potential for a larger mineralised system at depth. Structural reinterpretation and re-logging of drill cores have identified multiple high-priority targets, including quartz vein stockworks and felsic porphyry-hosted mineralisation, which will guide upcoming drill programs.

In parallel, Surefire completed its maiden drill program over copper-zinc anomalies at the Yidby Copper Project. The shallow reverse circulation drilling encountered significant sulphide mineralisation, with assays indicating anomalous copper, zinc, cobalt, and sulphur values. These findings support the prospectivity of the area and lay the groundwork for further geophysical surveys and deeper drilling.

Magnetite Concentrate Production and Overseas Evaluation

Surefire has initiated production of a high-grade magnetite concentrate from Victory Bore ore, processing approximately 700 kilograms of sample material through beneficiation techniques. This concentrate will be shipped to selected overseas partners for technical evaluation, a critical step in validating downstream processing pathways for vanadium pentoxide, ferrovanadium, pig iron, and titanium slag products. The program aligns with Surefire’s strategy to integrate mining and processing operations across Australia and Saudi Arabia, leveraging regional infrastructure and cost advantages.

Strategic Partnerships and Funding Outlook

The company is actively engaging with Saudi Arabian entities, including Ajlan & Bros Mining and Metals, and international engineering firm DRA Global, which has signed a Heads of Agreement to provide engineering and project delivery services. These collaborations aim to underpin the development of a downstream processing facility in Saudi Arabia, capitalising on the Kingdom’s low power costs, infrastructure, and steel industry demand.

Financially, Surefire reported cash reserves of AU$568,000 at the end of December 2024, supplemented by a loan facility and an expected R&D tax refund of AU$433,000. The company acknowledges ongoing negative operating cash flows typical of exploration entities but remains confident in securing additional funding through strategic partnerships and capital raising mechanisms.

Outlook

Surefire Resources is positioning itself at the nexus of critical mineral supply chains, with tangible progress on multiple fronts. The EOI from HMS Bergbau and the expanding footprint at Yidby underscore the company’s growing resource base and market relevance. However, the transition from exploration to production and processing hinges on successful funding and partnership agreements, which will be pivotal in the coming quarters.