SUREFIRE RESOURCES NL — Interim / Quarterly Report 2020

Oct 29, 2020

Quarterly Report

for the three months ended 30 September 2020

30th October 2020 ASX Announcement

SEPTEMBER 2020 QUARTERLY ACTIVITIES REPORT

__________________________________________________________________________________

Highlights

Yidby Gold Project – Murchison (WA)

• o Acquisition of prospective gold tenements E59/2426 and E59/2390
• o Application of E59/2442 (granted 28/8/2020)
• o Total project area 113.77 km² within Yalgoo-Singleton Greenstone Belt
• o Yidby Road, Cashen's Find, and Delaney Well Prospects. Each with historic highgrade gold intercepts including:

o	NGAC157	37m	@ 1.57g/t Au from 25m	(Yidby Road)
o	NGRC001	8m	@ 2.57 g/t Au from 109m	(Yidby Road)
o
o	NGRC002	15m	@ 2.02 g/t Au from 62m	(Yidby Road)
		5m	@ 13.10 g/t Au from 90m
		1m	@ 2.32 g/t Au from 119m
o	YRRC001	20m	@ 1.13 g/t Au from 28m	(Yidby Road)
o	DRC-8	8m	@ 4.69 g/t Au from 22m	(Delaney Well)
	Incl.	2m	@ 17.70 g/t Au from 22m
o	CF17	6m	@ 3.00 g/t Au from 15m	(Cashen's Find)

o Field reconnaissance and rock-chip sampling carried out

o POW applied for and approved

o Sites cleared for drilling

Perenjori Gold Project - Murchison (WA)

• o The Company acquired two Exploration Licence Applications (ELA59/2432, and EL70/5311) and applied for a further five Exploration licences (ELA70/5572. ELA70/5573, ELA70/5575, ELA59/2445, ELA59/2446.
• o Combined project area of 626.73 km² within the Koolanooka Greenstone Belt in the Southern Murchison Province of WA
• o Project situated 40km south of Deflector Gold Mine (Silver Lake Resources Ltd)
• o The area hosts iron, gold, and base metal mineralisation in a largely under-explored part of the Murchison Province

__________________________________________________________________________________

Unaly Hill high purity alumina (HPA) Project – Murchison (WA)

• o Vanadium-magnetite-titanium resource contains up to 20% alumina
• o Potential to produce 4N HPA with value up to US$30,000 per tonne
• o Hydrometallurgical testing commenced
• o Initial leach recoveries of at least 50% alumina indicated

Kooline Pb-Ag Project – Ashburton (WA)

• o Southern Geoscience commissioned to reappraise historic electrical and electromagnetic surveys and reinterpret data.
• o Refining targets prior to drilling

Figure 1 Project Location Map

During the September quarter the Company was excited to add two highly prospective exploration projects to its portfolio. The Yidby Project and Perenjori Projects both offer important targets for focussed exploration activities and field surveys. The most advanced of these, Yidby, had all three tenements granted during the quarter and work has been fasttracked attaining approvals and making all preparations necessary for a maiden drilling campaign.

Yidby Gold Project

The Yidby Gold Project is situated within the southern portion of the Yalgoo-Singleton Greenstone Belt near Ninghan Station Homestead. To the south of the project is the Extension Hill iron ore mine, Mount Gibson Gold Mine. The three exploration licences cover 113.77km² with three gold prospects hosting significant gold mineralisation. Historic workings occur at Nynghan Mining Centre, Delaney Well, and Cashen's Find, while historic drilling which reported significant gold intercepts has occurred at Yidby road, Delaney Well, and Cashen's Find Prospects.

The Yidby Gold Project is situated on the southern end of the bountiful Yalgoo-Singleton Greenstone Belt in the Murchison Domain within the western part of the mid to late-Archaean Youanmi Terrane.

The Yalgoo-Singleton Greenstone Belt (YSGB) is host to significant gold, base-metal, and iron mineralisation. The belt is 190km in length striking north-north-west and is bound by multiple generations of granitoid intrusions. The YSGB hosts the Minjar Gold Project (1.1Moz Au) and also the world class Golden Grove/Scuddles/Gossan Hill VHMS Camp (22.2Mt Zn, 29.4Mt Cu, 0.1 Mt Au oxide ore). Several regional scale faults and shear zones truncate the YSGB and the Yidby Project tenements. The Mount Gibson Gold Project is situated in the southern end of the Belt, just south of the Yidby Gold Project. The Mount Gibson Project consisted of eight open cuts along a NNE trending shear with gold mineralised in shallow laterites. The project operated from 1986 to 1999 and produced 870,000 oz at 1.6 g/t Au.

Program of Work (PoW) Granted

During the Quarter SRN lodged a Program of Work (PoW) with the Department of Mines, Industry, Resources, and Safety (DMIRS) which has since been approved. This approval covers exploration drilling being carried out at the Yidby Gold Project covering the Delaney Well, Yidby Road, and Cashen's Find Prospects within E59/2390 and E59/2426. The Mining Act requires that the Program of Work be approved prior to an explorer or prospector conducting any ground-disturbing activities with mechanised equipment. The granting of the PoW allows Surefire to undertake exploration drilling to verify and test the extent of the historic high-grade drilling intercepts at Yidby Road Prospect, located within E59/2390, and the Cashen's Find and Delaney Well Prospects, situated within E59/2423.

Figure 2 Yidby Prospects on RTP Magnetics

Yidby Road Prospect

The Yidby Road Prospect is within granted licence E59/2390 and to the south of the Cashen's Find gold workings. Historic drilling has recorded a number of high-grade gold intersections from drilling campaigns notably by Western Mining Corporation Ltd (1993), Normandy Gold Ltd (1996-1997), and Minjar Gold Pty Ltd (2006). Significant gold intersections from historic drilling campaigns are tabulated below:

Hole ID	From(m)	To(m)	Interval(m)	Au(g/t)	HoleType	EastingMGA	NorthingMGA	RL	Dip	Azimuth(mag)	HoleDepth(m)
NGRC001	109	117	8	2.57	RC	525663	6751800	300	-60	90	122
including	113	116	3	5.58
NGRC002	62	77	15	2.02	RC	525713	6751749	300	-60	90	120
including	62	69	7	3.23
	90	95	5	13.1
	119	120	1	2.43
YRRC001	28	48	20	1.13	RC	525815	6751740	300	-60	212	125
including	32	36	4	4.15
YRRC014	100	104	4	1.87	RC	525696	6751792	300	-60	230	120
NGAC157	25	62	37	1.57	Aircore	535690	6751800	300	-60	90	62
including	35	40	5	4.49
including	35	36	1	16.3

Table 1 Yidby Road Prospect Significant Gold Intercepts

Note: Coordinates in MGA2020, zone 50. Interval is down-hole and not true width.

The drilling intersected mineralised quartz veining associated with a quartz-feldspar porphyry intrusion within a suite of mafic and ultramafic volcanic units. Sulphide mineralisation included pyrite, pyrrhotite, an arsenopyrite assemblages. No surficial workings are evident at Yidby Road largely due to a succession of transported colluvium and gravels that overlie the mineralisation. While historic drilling encountered a number of broad and high-grade intercepts, it is evident that the mineralisation appears open in several orientations. The Companies RC drilling program plans to test parallel to historic drillholes, and across several possible orientations of the host porphyry unit.

Delaney Well Prospect

Situated in the north of Exploration Licence application E57/2426, the Delaney Well Prospect encompasses a cluster of gold stopes, shafts, and costeans in the southern part of the Nyngan Gold Mining Centre. The Delaney Well Prospect was drilled by Capricorn Resources Ltd (1989), Resource Exploration NL (1997), and WCP Resources Ltd (2013). The north-south trending line of workings targeted in the initial program follow along quartz stockwork veining within biotite-tremolite-chloritic schists with gold occurring in steep plunging shoots. The initial program recorded the high grade intersect of 2m @ 17.7 g/t Au from RC drill-hole DRC-8. Significant gold intersections are tabulated below:

Hole ID	From(m)	To(m)	Interval(m)	Au(g/t)	HoleType	EastingMGA	NorthingMGA	RL	Dip	Azimuth(mag)	TotalDepth
DRC-8	22	30	8	4.6	RC	527328	6760098	300	-60	90	34
including	22	24	2	17.7
DRC-10	16	24	8	0.43	RC	527324	6760140	300	-50	90	32
DRC-5	26	30	4	0.83	RC	527332	6759995	300	-60	90	34
DLRC002	35	37	2	2.32	RC	527318	6760140	300	-60	90	64

Table 2 Delaney Well Prospect Significant Gold Intercepts

Note: Coordinates in MGA2020, zone 50. Interval is down-hole and not true width.

The gold workings occur at the junction point between a north-westerly trending shear zone, and a north trending structure. The controls on the mineralisation remain to be better understood, and it appears that potentially steep plunging shoots have not been adequately tested by the shallow historic drilling. Lithologies drilled included fresh tholeiitic basalt with quartz veining. Copper was also significantly elevated across each hole drilled targeting the Nyngan workings.

Mineralisation

Gold mineralisation is found within broad, north-westerly trending, steeply dipping quartz vein stockworks in anatomising shear zones. Primary gold mineralisation at the tenement is associated with quartz veining and north-northwest trending shearing within basalt, dolerite, and intrusive felsic porphyry.

The historic Nyngan Mining Centre, near Delany's Well, comprises two groups. South of the Well a series of vertical shafts has targeted quartz vein hosted mineralisation in biotite and tremolite-chlorite schists. The quartz veins are parallel to the schistosity with mineralisation in steep plunging shoots. East of Delany's Well a series of vertical shafts strike parallel cuttings has gold mineralisation in quartz veined alteration zones within tremolite-chlorite schist and amphibolite.

The Yidby Road Prospect occurs where albite-porphyry dykes have intruded into schistose mafic volcanics. At Cashen's Find, vein stockworks are related to the sheared contact with an intrusive albite-quartz porphyry which has intruded a mineralised north-northwest trending Shearzone. There is no record of production from the excavation. At the above workings, mineralisation is typically accompanied by variably disseminated pyrite. Elemental associations include strong correlations with copper, molybdenum, and bismuth.

Unaly Hill HPA Project

Mineralogical analysis has shown that the Al2O3 in the diamond core sample test sample is in a mixture of refractory non-magnetic alumino-silicates - mainly anorthite, with smaller quantities of hornblende and clinochlore. The magnetic fraction is predominantly magnetite (Fe3O4) and ilmenite (FeTiO3). Magnetic separation tests indicate that significant reductions in Fe and Ti can be achieved with minimal alumina loss.

A beneficiated sample has been prepared for hydrometallurgical testing, which is underway at Nagrom. Initial tests have indicated that over 50% extraction of alumina may be achievable with a sulphuric acid leach.

The next phase of testing will focus on purification of the leach liquor (removal of Fe and Ti), and recovery of alumina by crystallization.

Kooline High-Grade Lead Silver Project

The Kooline Project, situated in the Ashburton Province of Western Australia, maintains considerably interest to the company due to its many exciting credentials. The multi-element project, centred on the high grade historic Kooline Lead workings, has ore-grade lead, silver, and copper, along with highly anomalous gold.

The Project is 55 kilometres south of the Paulsen's goldmine within the Ashburton province of Western Australia**.** The project area tenements cover a total of 386 km², and more importantly, includes 48km of contiguously striking licences linking several clusters of high grade historic artisanal high-grade lead/silver workings, with elevated copper and gold geochemical anomalies. For over a century Kooline was Western Australia's largest producer of lead.

Historic Production

The large post-war increase in the price of lead stimulated interest in lead deposits in Western Australia and made possible the re-opening of several deserted mines in the Northampton district and in the Ashburton Goldfield. It led also to renewed interest in the country surrounding "Wyloo" Station, some 120 miles southeast of Onslow, on the Ashburton River, an area of pre-Cambrian rocks long known to this branch as containing auriferous quartz. Aboriginal stockman from Wyloo and Kooline Stations had long known of galena "floaters" and showed samples to local prospectors. Within a few years many claims were staked and production from high grade lead silver mines commenced shortly thereafter. (1949 Report of the Department of Mines, Western Australia)

The Kooline Lead Field yielded some 2,679 tonnes of lead, and 26,533 ounces of silver from 40 small workings from 1947 to 1959. This followed a significant rise in the price of lead after World War 2 which subsequently retracted during the mid to late 1950's.

At today's lead price of $2,468/tonne AUD and silver price of $34.18/oz AUD, the combined value for the lead and silver produced is equates to a conservative estimate of $7.52 million AUD. Grade is King and much of the ore produced was high enough in grade for direct shipping. Over 60% of the total production at Kooline Lead Field was accounted for by three deposits, these being Bilrose, June Audrey, and The Gift and each of these mines had its own treatment plant. Since the late 1950's no attempts have been made to reopen the mines.

Figure 3 Kooline Lead Field

Review of Geophysics

During the quarter, the Kooline Lead-Silver Project was advanced with Southern Geoscience Consultants (SGC)being commissioned to reinterpret historic geophysical surveys. These include:

• o Gradient Array IP (GAIP)
• o Dipole-Dipole IP (DDIP)
• o Airborne VTEM data
• o Ground EM (FLEM) data

Previously at Kooline, SGC has completed reprocessing of geophysical datasets including:

• o Merged airborne Magnetics and Radiometric data
• o Regional ground Gravity data
• o ASTER satellite imagery

In addition, SGC have obtained electrical geophysical survey data from airborne contractors Geotech and ground geophysical contractors GPX that were acquired at Kooline in 2007 / 2008. The data include:

• o Five Gradient Array Induce Polarisation and Resistivity (GAIP) survey blocks
• o Two lines of Dipole-Dipole Induced Polarisation and Resistivity (DDIP)
• o Two Fixed Loop Electromagnetic (FLEM) survey blocks
• o An airborne Versatile Time-domain EM (VTEM) survey using 250m spaced survey lines

SGC have commenced reviewing this data, particularly in relation to the most significant workings at Kooline including The Gift, Bilrose, June Audrey, and Rainbow. Each of these workings reported high grade ore supported by surface sampling from SRN and historic explorers. The interpretive work in progress by SGC will enable more accurate drill targeting and identification of untested geophysical targets.

Figure 4 Historic processing equipment and tailings at The Gift

Perenjori Gold Project

The Perenjori Project includes seven exploration licences for a total area of 626.73² km. Situated to the south of the Deflector Gold Mine, operated by Silver Lake Resources Lt, the project is also to the west of Karara Iron Ore deposit, and Rothsay gold Mine. The area is an underexplored and highly prospective part of the Southern Murchison Domain which hosts numerous deposits and occurrences or iron, precious, and base metals.

Mount Magnet Exploration Licence (E58/559)

The Mount Magnet gold mining town, some 500km north of Perth, has been producing gold since discovery in 1891. It is situated within the Murchison Goldfields of the Yilgarn Craton in WA. Historically Mount Magnet produced over 6 million ounces of gold and has significant potential to host new discoveries. The Hill 50 Gold Mine commenced in 1936 and produced intermittently for many years. From 1955 and 1961 it was Australia's most profitable gold mine and over its life produced more than 3.5 million ounces until closure in 2007 at a depth of 1,500m below the surface.

The Mt Magnet project is located within the north-south striking Meekatharra-Mt Magnet greenstone belt. The greenstone belt lithologies comprise a succession of steeply dipping and intensely deformed mafic and ultramafic extrusive and intrusive rocks, felsic volcanics and banded iron formations (BIF). Granitic rocks intrude the greenstone belt stratigraphy. The BIF is the dominant host rock for gold mineralisation in the area. Gold mineralisation is typically associated the pyrite & pyrrhotite replacement of magnetite in the banded iron. High-grade ore shoots are developed along the intersection of the BIF and a swarm of northeast trending faults.

The Company's new application was recently granted (30/09/2020) and comprises of two graticular blocks for 6.06 km².

CORPORATE ACTIVITIES

Capital Raisings

During the period SRN issued a Prospectus, completed a non-renounceable rights issue (NRRI) and issued a total of 314,076,820 new options (each exercisable at $0.006 on or before 30 June 2022) pursuant to that NRRI and underwritten shortfall applications, raising a total of $314,077 before costs. This included a total of $105,447 from investors introduced by CPS Capital Group Pty Ltd who agreed to fully underwrite the NRRI.

The Company also completed a placement of $1,280,000 before costs with the proceeds allowing the Company to expand exploration and drilling activities on the recently acquired gold projects in West Australia. The Company issued 80,000,000 fully paid ordinary shares (Shares) at $0.016 each, together with 40,000,000 free attaching options (Options) on a one for two entitlement basis (issued on the same terms and conditions as those currently quoted on ASX, that is, exercisable at $0.006 each and exercisable on or before 30 June 2022) to professional and sophisticated investors. Both the Shares and the Options are listed on ASX and rank equally with the existing quoted securities.

ASX RELEASE AUTHORISED BY*:*

Vladimir Nikolaenko Managing Director

QUALIFYING STATEMENTS JORC Compliance: Competent Persons Statement:

Information in this report relating to exploration results is based on information compiled by Martin Dormer Consultant Geologist. Mr. Martin Dormer, who is a member of the Australian Institute of Mining and Metallurgy, has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person under the 2012 Edition of the 'Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Dormer consents to the inclusion of such information in this report and the context in which it appears.

APPENDIX 1 TENEMENT HOLDINGS AT 30 SEPTEMBER 2020

Concession ID	Type	Description/Status
E08/2373	Exploration	Kooline-Wyloo - SRN 100% - Granted
E08/2956	Exploration	Kooline – SRN 100% - Granted
E58/559	Exploration	Lennonville – SRN 100% - Application
E59/2444	Exploration	Yidby Hill – SRN 100% - Granted
E59/2445	Exploration	Perenjori 1 – SRN 100% - Application
E59/2446	Exploration	Perenjori 2 – SRN 100% - Application
E70/5572	Exploration	Fitzroy – SRN 100% - Application
E70/5573	Exploration	Pinjarrah Hill – SRN 100% - Application
E70/5575	Exploration	Kadji – SRN 100% - Application
E57/1068	Exploration	Unaly Hill – SRN 100% - Granted
E57/1112	Exploration	Unaly Hill – SRN 100% - Granted
E57/1036	Exploration	Atley – SRN 100% - Granted
E57/1139	Exploration	Victory Bore – SRN 100% - Granted