Funding Crunch Looms as Surefire Advances Multi-Project Exploration and Development

• Ongoing drilling at Yidby Gold Project targeting high-grade zones and extensions
• Metallurgical tests confirm high gold recoveries supporting upcoming scoping study
• Victory Bore Project advances with strong vanadium-titanium resource and processing plans
• Non-renounceable rights issue announced to raise approximately A$3.9 million
• Environmental approvals progressing for Perenjori Magnetite Project

Yidby Gold Project Drilling and Geological Insights

Surefire Resources NL has intensified its exploration efforts at the Yidby Gold Project, located within a prolific greenstone belt in Western Australia. The project lies near Capricorn Metals’ Mt Gibson deposit, a 4.5 million ounce gold system, suggesting significant upside potential. Recent drilling focused on high-priority targets including the Fender, Marshall, and Money Anomaly prospects, aiming to extend known mineralisation along strike and at depth.

Structural interpretations reveal a complex folded and sheared greenstone sequence hosting gold mineralisation associated with porphyry intrusives and regional shear zones. The presence of broad mineralised zones with bonanza grades at Fender and Marshall underscores the potential for a large-scale gold system. The Money Anomaly, identified through innovative geophysical and geochemical methods, represents a new priority target for upcoming drilling.

Encouraging Metallurgical Test Results Bolster Project Viability

Metallurgical test work has demonstrated excellent gold recoveries at Yidby, with gravity and cyanide leach tests achieving between 97.6% and 99.5% extraction rates. Notably, column leach tests on coarser crush sizes showed ongoing gold recovery, indicating operational flexibility. These results suggest that previous drilling may have underestimated gold content, reinforcing the project's economic potential. The company plans further test work to optimise processing parameters ahead of a scoping study.

Victory Bore Critical Minerals Project Progress

The Victory Bore Project remains a cornerstone of Surefire’s portfolio, boasting one of Australia’s largest vanadium resources alongside significant titanium and iron content. Following completion of a pre-feasibility study in late 2023, the company is advancing development plans for mining and beneficiation operations. The magnetite concentrate produced is exceptionally clean, with iron grades improved by 15% compared to earlier studies, and high vanadium and titanium levels suitable for downstream processing.

Surefire is actively engaging with partners in the Kingdom of Saudi Arabia to establish processing facilities, leveraging the region’s low energy costs and infrastructure advantages. A Heads of Agreement with engineering firm DRA Global supports project delivery and financing efforts. Discussions with HMS Bergbau AG aim to secure offtake agreements for vanadium and titanium products, targeting European markets.

Capital Raising and Financial Position

To underpin its exploration and development activities, Surefire announced a non-renounceable rights issue offering two new shares for every three held, priced at A$0.002 each, aiming to raise approximately A$3.9 million. This includes bonus shares and options to incentivize participation. At quarter-end, the company held cash reserves of $314,000 and a $1.03 million loan facility, reflecting a tight but manageable liquidity position. The company acknowledges ongoing negative operating cash flows typical of exploration entities but is actively managing expenditures and funding sources.

Environmental and Other Project Updates

Surefire is progressing environmental approvals for its Perenjori Magnetite Project, with formal referral documentation submitted to the EPA. The company has attracted interest from multiple parties for potential offtake and development partnerships. Meanwhile, the Copper Hill prospect within the Yidby tenure is undergoing electromagnetic surveys to delineate conductive copper sulphide mineralisation, supporting future drill targeting.

Overall, Surefire’s June quarter activities reflect a balanced approach to advancing multiple projects across gold, copper, and critical minerals, supported by strategic partnerships and capital initiatives.

Bottom Line?

Surefire’s next milestones hinge on assay results, scoping study outcomes, and successful capital deployment to sustain its multi-commodity growth trajectory.

Questions in the middle?

• Will upcoming drilling at Yidby confirm extensions of high-grade gold zones and expand the resource?
• How will the company balance exploration expenditure with its tight cash position and capital raising outcomes?
• What progress will Surefire make in securing offtake agreements and processing partnerships in Saudi Arabia?