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SUREFIRE RESOURCES NL — Interim / Quarterly Report 2024
Jan 30, 2025
65857_rns_2025-01-30_766af729-7b91-4c65-bf11-5b243b57cd07.pdf
Interim / Quarterly Report
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31 January 2025
31 July 2023 31 July 2023
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QUARTERLY ACTIVITIES REPORT DECEMBER 2024
Highlights:
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EOI from HMS Bergbau, Germany, for product offtake from Victory Bore.
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New Gold and Copper targets identified at Yidby Project.
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Yidby Gold system extended in recent drilling program with new 20m @ 1.73g/t Gold intersection.
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Review of data indicates new targets and potential for large mineralised system at depth.
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Maiden drill program completed over Yidby copper -zinc anomalies.
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High grade magnetite production commenced for overseas assessment.
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R&D refund submitted for $433K.
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Figure 1: Surefire Resources Project Location Map.
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ASX Announcement ASX: SRN - FSE: GBL
Surefire Resources NL (“ Surefire ”, or “the Company ”) is pleased to report on its projects and activities for the quarter ending 31 December 2024.
SUMMARY:
The Companies focus during this quarter was progressing the engagement with potential investors and strategic partners in Saudin Arabia, Middle East and Europe for its flagship Victory Bore project. In addition, new targets were identified to advance the Company’s gold and copper projects (Figure 1).
VICTORY BORE PROJECT: E57/1036 and M 57/667
The Victory Bore Project is the Company’s flagship project comprising a world-scale critical and battery minerals deposit located in the resource rich Mid-West of Western Australia approximately 530km north of Perth. The project is well located close to existing infrastructure of power and road links. The Company completed a Pre-Feasibility Study on the project in December 2023 (see ASX announcement 5 December 2023).
Project Status
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Pre- Feasibility Study completed (December 2023)
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24-year mine life
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NPV10 AU $1.7B
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IRR 42%
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Ore Reserve
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Mining Licence in application
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Environmental Surveys
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Heritage surveys
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Offshore processing will allow low operating costs and production close to market
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MOU with Saudi Government
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MOU with Ajlan Bros Mining and Metals
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HOA with DRA Global
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Mid-West Port agreement
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EOI with HMS Bergbau for product offtake
Offtake
During the quarter the Company received a formal Expression of Interest ( EOI ) from leading German commodities trading group HMS Bergbau AG for vanadium and titanium products from the Company’s 100% owned Victory Bore project.
HMS Bergbau AG (HMS) specializes in global marketing and logistics of raw materials, dry bulk and critical minerals. They have an established presence in Europe, Africa, Asia and Middle East and relationships with major funding groups.
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ASX Announcement ASX: SRN - FSE: GBL
The EOI specifically notes interest in the offtake of the Company’s Vanadium and Titanium products and its associated processing facilities in Saudi Arabia, and to explore a long-term strategic resource partnership.
The Company is engaging with HMS to discuss terms for offtake and funding support to provide a reliable and strategic supply of vanadium and other metal products to Germany and Europe.
Surefire listed on the Frankfurt stock exchange in July 2024 with the aim of establishing interest in the Company’s critical minerals project Victory Bore (see ASX announcement 22 July 2024).
In September 2024 Germany launched a €1 billion ($AUD1.61 billion) Raw Materials Fund to Strengthen Supply Chains. The German government fund is for investment in raw materials as it seeks to limit dependency on producers such as China for critical minerals
Magnetic Concentrate
During the quarter the Company initiated a program to produce a high-grade magnetite concentrate from Victory Bore ore material (refer ASX announcement 18 December 2024).
The Company has initiated this program following discussions with external parties interested in evaluating the Victory Bore concentrate. A programme to produce fresh magnetite concentrate is underway. Approximately 700kg of Victory Bore sample material from the main ore zone has been collected and is being processed at Nagrom Laboratories in Perth.
The sample material will undergo the standard beneficiation process of crush, grind and magnetic separation as used in the Victory Bore Pre-Feasibility Study, to produce a high-grade magnetite concentrate before further downstream processing occurs for the production of Vanadium Pentoxide, Ferrovanadium, Pig-Iron, High Purity Iron and Titanium slag, (see ASX announcement 5 December 2023).
Once the beneficiation process is completed, the premium magnetite concentrate will be shipped to selected overseas groups for technical evaluation. This program supports the Company’s development pathway for its flagship project and for its continued discussions with Saudi, Middle-Eastern and European based companies.
Mineral Resources
The Victory Bore project is one of the largest vanadium resources in Australia with a Mineral Resource Estimate ( MRE ) of 464Mt @ 0.39% V2O5, 5.12% TiO2, 17.7% Fe, and an Ore Reserve of 93Mt@ 0.35% V2O5, 5.2% TiO2, 19.8% Fe (see ASX announcement 5 December 2023), and Appendix A.
Development
The Company is progressing the development of a mining and beneficiation operation at the Victory Bore deposit site to produce a high-quality magnetite concentrate.
The magnetite concentrate will then be transported to Geraldton Port and on-shipped to Port Daaman in the Kingdom of Saudi Arabia (KSA), where a downstream processing facility will be established to produce high purity products of Vanadium Pentoxide, Ferrovanadium, vanadium electrolyte, Pig-Iron, Iron oxide. Titanium slag.
The Company is progressing discussions with Saudi entities for this processing facility and has engaged entities in London, Middle East and Germany to assist the company with discussions.
DRA Global
The Company has a Heads of Agreement (HOA) with international engineering group DRA Global for a total engineering services package.
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ASX Announcement ASX: SRN - FSE: GBL
DRA is an international multi-disciplinary engineering, project delivery and operations management group, predominantly focused on the mining, minerals and metals industry. The Group has an extensive track record across a wide range of commodities and deep expertise in the mining, minerals and metals processing industries, as well as related non-process infrastructure such as water and energy solutions. DRA covers all major mining centres with offices across Africa, the Middle East, North and South America, and Asia-Pacific.
Management (EPCM), Non-Process Infrastructure (NPI), Project delivery, operational readiness and operations & maintenance (OM) services, subject to future agreements between the Parties for the provision of those services when required.
DRA also has significant major project experience and expertise in mineral processing and mining operations in Saudi Arabia and Australia which will be beneficial to Surefire’s development plans. The agreement with DRA will also assist and support Surefire in any project development, project delivery and project finance discussions.
Logistics
During the quarter the Company has progressed discussions with logistic groups for the mining and transport of the concentrate.
Meetings have occurred with Verbrec regarding the Mid-West Shared Infrastructure Project (MWSIP) in relation to a proposed multi – user slurry pipeline for magnetite concentrates.
Mid-West Ports (Geraldton)
Discussions with the port authority on the availability of loading facilities and concentrate storage were carried out, to put the Victory Bore project on their forward-looking schedule of projects.
Kingdom of Saudi Arabia
The Company has engaged with the Kingdom of Saudi Arabia as it is a low power and fuel cost jurisdiction and provides the Company with significant operational advantages including reduction in operating costs favourable incentives for funding, availability of infrastructure and reagents. The KSA also has a significant steel sector with demand for iron and vanadium products, including ferrovanadium.
Ajlan & Bros. Mining and Metals
During the quarter the Company continued discussions with Ajlan & Bros. Mining and Metals ( Ajlan ).
Other Groups
The company has had further contact and discussions with Saudi and middle eastern based companies during the quarter to progress funding and strategic opportunities.
Definitive Feasibility Study
During the quarter, Management assessed work quotations for the Definitive Feasibility Study in conjunction with other work streams on the project.
Research and Development
Vanadium Extraction by Leach
During the quarter the Company continued its review of testwork results and considering next steps.
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ASX Announcement ASX: SRN - FSE: GBL
UNALY HILL PROJECT: E57/1068
The Unaly Hill vanadium – iron project is located adjacent to the Company’s flagship project Victory Bore and contains a significant extension to the Victory Bore resource.
YIDBY GOLD PROJECT : E59/2845, E59/2444, E59/2390, E59/2426
The Yidby Gold Project is an emerging large gold system and contains significant mineralised zones up to 80m wide. The anomalous gold currently extends over a 3km strike length and is open along strike and at depth (Figure 2).
Metallurgical work undertaken by the Company shows that the gold is recoverable by leaching which increases the potential of the project area. The Company considers there is scope for a larger gold system at depth, with more intensely developed high grade zones within the overall shear – porphyry system.
During the quarter a review of targets for drilling was initiated and involved new Induced Polarization (IP) survey interpretation and review of structural targets to extend the gold hosted porphyry, together with relogging of drill core and RC chips by an independent structural geologist.
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Figure 2: Yidby Gold Project location.
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ASX Announcement ASX: SRN - FSE: GBL
Induced Polarisation Survey
A Dipole-Dipole Induced Polarisation (“IP”) survey was completed in 2005 by Gindalbie Metals over the Yidby project area. Surefire requested Terra Resources Geophysical and Geological consulting (“TRG”) to reinterpret this data with the aim of identifying prospective extensions of the gold mineralization detected in Surefire’s previous drill programs and selecting new drill targets.
Significantly, the IP survey covers the main portion of the Yidby project where gold was discovered by Surefire in 2020 (see ASX release 30 November 2020).
TRG reprocessed the IP data using 2D and 3D inversion programs resulting in new Resistivity and Chargeability data plotted as sections and plan maps. Chargeability and resistivity data were inverted using Zonge software. The 3D inversion models showed high chargeability lenses with 4 chargeability
Drill Targets
Five anomalous chargeable zones, T1-T5, were selected as high priority for drill testing. These targets trend in a distinct NW-SE direction, coincident with the structural trends seen in the drill core. T5 is a very high chargeability anomaly (Figure 3).
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Figure 3: IP generated drill targets.
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ASX Announcement ASX: SRN - FSE: GBL
Diamond drill core structural interpretation
Surefire commissioned CSA Global (“CSA”) to undertake a review of structural data compiled from 5 diamond drill cores. The diamond drill core logging and interpretation revealed that there are likely two di�erent styles of gold mineralization:
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a) Quartz vein hosted, with stockwork
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b) Felsic porphyry and associated quartz-sulphide vein hosted
The quartz vein hosted style is associated with biotite wallrock alteration. Diamond Drill hole PDD��� shows two orientations for the quartz vein hosted mineralization, a north-trending stockwork vein system with high-grade gold mineralization, and a west northwest-trending system with lower-grade gold mineralization.
The felsic quartz porphyry style is intersected in diamond drill cores PDD��� and PDD��� and hosts mineralization of both disseminated within the porphyry and in associated quartz-sulphide vein.
Using the structural observations on the drill core and gold grades CSA proposed 6 drill targets with 4 high priority drill locations targeting the extensions of high-grade gold quartz veins in PDD002 and extensions to the felsic quartz porphyry in PDD004 and PDD005 as a high priority (see Figure 4).
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Figure 4: Structural target areas for future drilling.
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ASX Announcement ASX: SRN - FSE: GBL
Table 1: Priority drill targets
| Target Area | Description | Priority |
|---|---|---|
| 1 | Highgradequartz stockwork vein system North-trending | 1 |
| 2 | Highgradequartz stockwork vein system North-trending | 1 |
| 3 | Felsicquartzporphyryhosted Au mineralization | 1 |
| 4 | Felsicquartzporphyryhosted Au mineralization | 1 |
| 5 | Quartz vein hosted lower-grade mineralization West-northwest trending | 2 |
| 6 | Quartz-albite vein hosted mineralization, high uncertainty in location in the drill core, reviewgold assays |
3 |
Re-Logging of drill chips and re-interpretation
Surefire commissioned Dr Nigel Maund to undertake a program of selected re – logging of Reverse Circulation (RC) percussion drill chips from the Yidby Gold Project.
Dr Maund concluded there had been at least four, mineralogically distinct, phases of stockwork vein development, with porphyry dykes became loci of more intense stockwork development, see plates 1, 2.
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Plate 1: Diamond Drill hole PDD004: Showing chloritized inclusions partially replaced by fine grained pyrite with late stage, coarser grained, euhedral pyrite (cubic) replacing chloritized mafic inclusions.
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ASX Announcement ASX: SRN - FSE: GBL
Plate 2: Diamond drill hole PDD004. Intensely bleached and pervasively silicified feldspar + hornblende porphyry showing two stages of stockwork veining events of widely differing character. Stage 1 comprises thin (1 to 2 mm), planar, pale grey glassy quartz ± residual entrapped chloritized ferromagnesian minerals partially replaced or associated with fine grained pyrite. Stage 2 comprises a thin, < 1mm, planar with a large, diffuse, alteration selvedge composed of grey silica and exceptionally fine grained disseminated anhedral pyrite grains.
The porphyry hosted stockwork vein system evolved through early quartz dominated stages, involving a strong (possibly seismic induced) large hydrothermal system, through to a less violent lower temperature initial pyrite + base metal sulphide + native gold stage.
Importantly this suggests potential for a larger mineralised system at depth below the current shallow drilling to date (– 200 vertical metres).
Drill Program
On 8 November the company commenced a follow up drill programme on the new priority drill targets had been delineated following external consultants’ reviews of geophysical (gravity and IP) data, structural interpretation and relogging of drill chips (refer ASX announcement 8 November 2024).
A total of 13 reverse circulation (RC) drill holes for 1,782m were completed. 1m samples were collected from each hole and then a standard 4m composite was submitted to the laboratory for assay. Drill holes were sampled on a 4m composite basis with a clear strategy to then sample the 1m intervals over any horizon showing gold anomalism, as with the previous successful drill programmes.
Results
Initial results from the first 2 holes, YBRC102, and YBRC103 have been received with the following intersects shown in table 2.
These have confirmed an extension to the Yidby Gold system with a 20m @ 1.73g/t Gold intersection. Cross sections show the extensions with plenty of open areas for more mineralisation (see Figure 6 and 7).
Table 2: Drill results at Yidby
| Hl ID | Nh | Ei | RL | Aih | Di | From | To | Interval | Au |
|---|---|---|---|---|---|---|---|---|---|
| oe | ort | astng | zmut | p | (m) | (m) | (m) | (g/t) | |
| YBRC102 | 6751820 | 525760 | 300 nom |
270 | -60 | 32 | 64 | 32 | 0.25 |
| YBRC102 | 6751820 | 525760 | 300 nom |
270 | -60 | 80 | 100 | 20 | 1.73 |
| YBRC103 | 6751720 | 525848 | 300 nom |
270 | -60 | 12 | 20 | 8 | 0.32 |
| YBRC103 | 6751720 | 525848 | 300 nom |
270 | -60 | 32 | 48 | 16 | 0.33 |
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ASX Announcement ASX: SRN - FSE: GBL
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Figure 5: Drill hole location.
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Figure 6: Yidby Drilling Cross Section 6751820mN.
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ASX Announcement ASX: SRN - FSE: GBL
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Figure 7: Yidby Drilling Cross Section 6751720mN.
YIDBY COPPER PROJECT: E59/2426
Surefire initiated a soil sampling, mapping and geological investigations of the area. Soil samples were collected on north-south lines 250m apart, with samples collected at 100m intervals.
Following the receipt of further anomalous assay results of extensive contiguous zone of anomalous copper and zinc values with up to 310 ppm Copper; 100 ppm Zinc, 100 ppm Cobalt, 452 ppm Sulphur. A drill program was planned. (refer ASX announcement 17 September 2025. 9 October 2024).
Maiden Drill Programme
The maiden drill programme involved the completion of a total of 11 shallow RC holes for 672m over the 4 target areas (see Figure 8). The drilling was aimed at testing the near surface geochemical anomalies only as no geophysics has yet been undertaken.
The geology observed was dark volcanic clays followed by fresh black volcanic rocks. Numerous sulphides were observed. It was noted that the specific gravity of the rock sample increased significantly where these occurred.
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ASX Announcement ASX: SRN - FSE: GBL
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Figure 8: Copper anomalies and selected drill targets.
PERENJORI MAGNETITE PROJECT: E70/5575, E59/2446, E70/5572, E70/6402.
The Perenjori Magnetite project is in the infrastructure-rich Mid-West mining district of Western Australia. The magnetite project is located on E70/5311 (see figure 7). The project is well positioned to deliver high-grade iron concentrates into next-generation zero-carbon steel plants. The project is closer to the Geraldton Port than other Western Australian magnetite projects, with a rail distance of 219km.
Environmental approvals and Permitting
During the quarter the company and its appointed consultants Aurora environmental engaged with the EPA and will move to a referral document in early 2025. The referral document is the Companies formal applicant for the EPA to consider the project approval.
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ASX Announcement ASX: SRN - FSE: GBL
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Figure 9: Location of Perenjori Project.
CORPORATE
Annual General Meeting
The Company’s AGM was held on 29 November 2024 with all resolutions passed (refer ASX announcement 29 November 2024).
Research and Development Rebate
The Company has submitted a refundable tax offset under the Federal Government’s Research and Development (“R&D”) tax incentive scheme for eligible R&D activities undertaken during the 2023/2024 financial year for $433K.
Financial Position
The Company had total cash reserves of $568k at 31 December 2024.
The company is in discussions with a number of companies regarding funding. Further details can be found in the enclosed Appendix 5B - Quarterly Cash Flow Report.
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ASX Announcement ASX: SRN - FSE: GBL
ASX ADDITIONAL INFORMATION – Guidance Note 23 Disclosures
Surefire provides the following information pursuant to ASX Listing Rule requirements:
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ASX Listing Rule 5.3.1 - Exploration and Evaluation Expenditure during the quarter was $430K. Full details of exploration activities during the quarter are set out in this report;
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ASX Listing Rule 5.3.2 - There was no substantive mining production and development activities during the quarter;
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ASX Listing Rule 5.3.3 – Details of mining tenements acquired or disposed of during the quarter, and held at the end of the quarter are set out in this report; and
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ASX Listing Rule 5.3.5 - Payments to related parties of the Company and their associates during the quarter: $185K. The Company advises that this relates to remuneration of Directors for executive chairman consultancy services, managing director employment, and non-executive directorial services.
Authorised for release to ASX by Paul Burton, Managing Director
Inquiries: Paul Burton Managing Director +61 8 6331 6330
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ASX Announcement ASX: SRN - FSE: GBL
APPENDIX A
VICTORY BORE MINERAL RESOURCES AND ORE RESERVES
The Mineral Resource Estimate set out in the table below was released in an ASX announcement on 5 December 2023 and has been prepared in accordance with the JORC Code 20212.
Mineral Resource
| Cut-off (% | Tonnes | ||||||
|---|---|---|---|---|---|---|---|
| Classification: | V2O5) |
(Mt) | V2O5 (%) | TiO2 (%) | Fe(%) | Al2O3 (%) | SiO2 (%) |
| Measured | 0.15 | 25.3 | 0.35 | 4.96 |
19.20 | 17.0 | 34.9 |
| Indicated | 0.15 | 113.2 | 0.32 | 4.70 |
18.19 | 17.4 | 35.9 |
| Inferred | 0.15 | 326.1 | 0.28 | 5.28 |
17.41 | 16.0 | 36.4 |
| Total | 0.15 | 464.6 | 0.30 | 5.12 |
17.70 | 16.4 | 36.2 |
Ore Reserve
The Ore Reserve set out in the table below was released in an ASX announcement on 5 December 2023 and has been prepared in accordance with the JORC Code 20212.
| Classification | Ore tonnes (Mt) |
V2O5 (%) |
TiO2 (%) |
Fe (%) |
Al2O3 (%) |
SiO2 (%) |
|---|---|---|---|---|---|---|
| Probable | 93.1 | 0.35 | 5.2 | 19.8 | 16.8 | 34.3 |
The estimated ore reserves and/or mineral resources underpinning the production target have been prepared by a competent person in accordance with the requirements in the JORC Code. The Company confirms that all material assumptions and technical parameters underpinning the Mineral Resource Estimates continue to apply and have not materially changed.
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ASX Announcement ASX: SRN - FSE: GBL
TENEMENT SCHEDULE
The Company held a direct or indirect interest in the following tenements as at 31 December 2024
| PROJECT | LEASE | NAME | LOCALITY | LEASE STATUS |
|---|---|---|---|---|
| YIDBY GOLD PROJECT | E59/2426 | Nynghan | WA | Granted |
| E59/2390 | Yalgoo | WA | Granted | |
| E59/2444 | Yidby Hill | WA | Granted | |
| E59/2845 | Yidby | WA | Granted | |
| PERENJORI PROJECT | E70/5311 | Southwest | WA | Granted |
| VICTORY BORE-UNALY HILL PROJECT |
E57/1036 | Victory Bore | WA | Granted |
| M57/667 | Victory Bore | WA | M Lease in Application |
|
| UNALY HILL | E57/1068 | Unaly Hill | WA | Granted |
| NORTH PERENJORI | E70/5575 | Kadji | WA | Surrendered |
| E59/2446 | Perenjori 2 | WA | Surrendered | |
| E70/5572 | Fitzroy | WA | Granted |
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ASX Announcement ASX: SRN - FSE: GBL
Competent Person Statements
The information in this report that relates to exploration results has been reviewed, compiled, and fairly represented by Mr Horst Prumm, a Member of the Australian Institute of Mining and Metallurgy (‘AusIMM’) and the Australian Institute of Geoscience (‘AIG’) and a fulltime employee of Prumm Corporation Pty Ltd. Mr Prumm has sufficient experience relevant to the style of mineralisation and type of deposits under consideration to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (‘JORC’) Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Mr Prumm consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.
The information in this report that relates to the Victory Bore Vanadium mineral resource estimation is based on work completed by Mr. Stephen Hyland, a Competent Person and Fellow of the AusIMM. Mr. Hyland is Principal Consultant Geologist with Hyland Geological and Mining Consultants (HGMC), who is a Fellow of the Australian Institute of Mining and Metallurgy and holds relevant qualifications and experience as a qualified person for public reporting according to the JORC Code in Australia.
The information in this report that relates to metallurgical results has been reviewed, compiled, and fairly represented by Mr Damian Connelly, a Member of the Australian Institute of Mining and Metallurgy (‘AusIMM’) and the Australian Institute of Geoscience (‘AIG’) and a fulltime employee of METS engineers. Mr Connelly has sufficient experience in the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (‘JORC’) Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Mr Connelly consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.
New Information or Data
SRN confirms that it is not aware of any new information or data that materially affects the information included previous market announcements and, in the case of Mineral Resources, which all material assumptions and technical parameters underpinning the estimates in the relevant announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not materially changed from the original market announcement.
Forward Looking Statements
This announcement contains 'forward-looking information' that is based on the Company’s expectations, estimates and projections as of the date on which the statements were made. This forward-looking information includes, among other things, statements with respect to the Company’s business strategy, plans, development, objectives, performance, outlook, growth, cash flaw, projections, targets and expectations, mineral reserves and resources, results of exploration and related expenses. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as 'outlook', 'anticipate', 'project', 'target', 'potential', 'likely', 'believe', 'estimate', 'expect', 'intend', 'may', 'would', 'could', 'should', 'scheduled', 'will', 'plan', 'forecast', 'evolve' and similar expressions. Persons reading this announcement are cautioned that such statements are only predictions, and that the Company’s actual future results or performance may be materially different. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information.
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Rule 5.5
Appendix 5B
Mining exploration entity or oil and gas exploration entity quarterly cash flow report
Name of entity
| SUREFIRE RESOURCES NL | SUREFIRE RESOURCES NL | |||
|---|---|---|---|---|
| ABN: | Quarter ended (“Current Quarter”) | |||
| 48 083 | 274 024 | 31 | December | 2024 |
| Consolidated statement of cash flows | Current quarter | Year to date | ||
| $A’000 | (6 months) | |||
| $A’000 | ||||
| 1. | Cash flows from operating activities | |||
| 1.1 | Receipts from customers | - | - | |
| 1.2 | Payments for | |||
| (a) exploration & evaluation | (430) | (488) | ||
| (b) development | - | - | ||
| (c) production | - | - | ||
| (d) staff costs | (390) | (709) | ||
| (e) administration and corporate costs | (160) | (353) | ||
| 1.3 | Dividends received (see note 3) | - | - | |
| 1.4 | Interest received | 1 | 4 | |
| 1.5 | Interest and other costs of finance paid | - | - | |
| 1.6 | Income taxes paid | - | - | |
| 1.7 | Government grants and tax incentives | - | - | |
| 1.8 | Other (provide details if material) | - | - | |
| 1.9 | Net cash from / (used in) operating | (979) | (1,546) | |
| activities | ||||
| 2. | Cash flows from investing activities | |||
| 2.1 | Payments to acquire or for: | |||
| (a) entities | - | - | ||
| (b) tenements | - | - | ||
| (c) property, plant and equipment | - | (1) | ||
| (d) exploration & evaluation | - | - | ||
| (e) investments | - | - | ||
| (f) other non-current assets |
- | - |
ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.
Page 1
Appendix 5B
Mining exploration entity or oil and gas exploration entity quarterly cash flow report
| Consolidated statement of cash flows | Consolidated statement of cash flows | Current quarter | Year to date |
|---|---|---|---|
| $A’000 | (6 months) | ||
| $A’000 | |||
| 2.2 | Proceeds from the disposal of: | ||
| (a) entities | - | - | |
| (b) tenements | - | - | |
| (c) property, plant and equipment | - | - | |
| (d) investments | - | - | |
| (e) other non-current assets | - | - | |
| 2.3 | Cash flows from loans to other entities | - | - |
| 2.4 | Dividends received (see note 3) | - | - |
| 2.5 | Other (provide details if material) | - | - |
| 2.6 | Net cash from / (used in) investing | - | (1) |
| activities | |||
| 3. | Cash flows from financing activities | ||
| 3.1 | Proceeds from issues of equity securities | ||
| (excluding convertible debt securities) | - | - | |
| 3.2 | Proceeds from issue of convertible debt | - | - |
| securities | |||
| 3.3 | Proceeds from exercise of options and | - | - |
| conversion of partly paid shares into fully | |||
| paid shared | |||
| 3.4 | Transaction costs related to issues of equity | - | - |
| securities or convertible debt securities | |||
| 3.5 | Proceeds from borrowings | 630 | 630 |
| 3.6 | Repayment of borrowings | - | - |
| 3.7 | Transaction costs related to loans and | - | - |
| borrowings | |||
| 3.8 | Dividends paid | - | - |
| 3.9 | Other (provide details if material) | - | - |
| 3.10 | Net cash from / (used in) financing | 630 | 630 |
| activities | |||
| 4. | Net increase / (decrease) in cash and | ||
| cash equivalents for the period | |||
| 4.1 | Cash and cash equivalents at beginning of | 917 | 1,485 |
| period | |||
| 4.2 | Net cash from / (used in) operating | (979) | (1,546) |
| activities (item 1.9 above) | |||
| 4.3 | Net cash from / (used in) investing activities | - | (1) |
| (item 2.6 above) | |||
| 4.4 | Net cash from / (used in) financing activities | 630 | 630 |
| (item 3.10 above) |
ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.
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Appendix 5B
Mining exploration entity or oil and gas exploration entity quarterly cash flow report
| Consolidated statement of cash flows | Consolidated statement of cash flows | Current quarter | Year to date |
|---|---|---|---|
| $A’000 | (6 months) | ||
| $A’000 | |||
| 4.5 | Effect of movement in exchange rates on | - | - |
| cash held | |||
| 4.6 | Cash and cash equivalents at end of | 568 | 568 |
| period | |||
| 5. | Reconciliation of cash and cash | Current quarter | Previous quarter |
| equivalents | $A’000 | $A’000 | |
| at the end of the quarter (as shown in the | |||
| consolidated statement of cash flows) to the | |||
| related items in the accounts | |||
| 5.1 | Bank balances | 53 | 63 |
| 5.2 | Call deposits | 497 | 836 |
| 5.3 | Bank overdrafts | - | - |
| 5.4 | Other (provide details) Office rental bond | 18 | 18 |
| 5.5 | Cash and cash equivalents at end of | 568 | 917 |
| quarter (should equal item 4.6 above) | |||
| 6. | Payments to related parties of the entity and their | Current quarter | |
| associates | $A'000 | ||
| 6.1 | Aggregate amount of payments to related parties and their | 185 | |
| associates included in item 1 | |||
| 6.2 | Aggregate amount of payments to related parties and their | - | |
| associates included in item 2 | |||
| Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a | description of, and an | ||
| explanation for, such payments. |
ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.
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Appendix 5B
Mining exploration entity or oil and gas exploration entity quarterly cash flow report
| 7. | Financing facilities Total facility |
Amount drawn at |
|---|---|---|
| Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. amount at quarter end $A’000 |
quarter end $A’000 |
|
| 7.1 | Loan facilities 750 |
630 |
| 7.2 | Credit standby arrangements - |
- |
| 7.3 | Other (please specify) - |
- |
| 7.4 | Total financing facilities 750 |
630 |
| 7.5 | Unused financing facilities available at quarter end | 120 |
| 7.6 | Include in the box below a description of each facility above, including the lender, interest | |
| rate, maturity date and whether it is secured or unsecured. If any additional financing | ||
| facilities have been entered into or are proposed to be entered into after quarter end, | ||
| include a note providing details of those facilities as well. | ||
| Refer ASX release dated 29.10.2024 wherein it was advised that Vargas Holdings Pty Ltd, | ||
| a company associated with Mr Vladimir Nikolaenko, had agreed a loan drawdown facility of | ||
| up to $500k with an option to increase the facility to $750k. |
| 8. | Estimated cash available for future operating activities | $A’000 |
|---|---|---|
| 8.1 | Net cash from / (used in) operating activities (item 1.9) | (979) |
| 8.2 | (Payments for exploration & evaluation classified as investing | - |
| activities) (item 2.1(d)) | ||
| 8.3 | Total relevant outgoings (item 8.1 + item 8.2) | (979) |
| 8.4 | Cash and cash equivalents at quarter end (item 4.6) | 568 |
| 8.5 | Unused finance facilities available at quarter end (item 7.5) | 120 |
| 8.6 | Total available funding (item 8.4 + item 8.5) | 688 |
| 8.7 | Estimated quarters of funding available (item 8.6 divided by item 8.3) |
0.70 |
| Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. | ||
| Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. | ||
| 8.8 | If item 8.7 is less than 2 quarters, please provide answers to the following questions: | |
| 8.8.1 Does the entity expect that it will continue to have the current level of |
net operating | |
| cash flows for the time being and, if not, why not? | ||
| Answer: SRN expects that it will continue to have negative operating cash flows as is usual | ||
| for mining exploration entities, but expenditures on discretionary exploration | ||
| expenses will be curtailed as needed, dependent on available cash resources. |
ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.
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Appendix 5B
Mining exploration entity or oil and gas exploration entity quarterly cash flow report
- 8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?
Answer: SRN is currently in discussions and having regard to its record of raising funds as and when required, these negotiations are expected to result in additional capital being raised. The Company has entered into an agreement for a loan drawdown facility of up to $750k with a company associated with Mr Vladimir Nikolaenko as the lender. The Company is expecting to receive an R&D Grant totalling $433k. The Company has also entered into an At-The-Market Placement Agreement with Acuity Capital (refer previous announcements made 26.10.2018, 29.10.2018, 30.11.2018, 1.2.2021, 31.1.2023 and 29.10.2024) which as yet has not been actioned. At the date of this report, a total of 100 million ASX:SRN shares could be placed at market to activate the facility.
-
8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?
-
Answer: SRN expects to be able to continue its operations and meet its business objectives based on its responses to 8.8.1 and 8.8.2 above.
Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.
Compliance statement
-
1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
-
2 This statement gives a true and fair view of the matters disclosed.
Date: 31 January 2025
Authorised by: Rudolf Tieleman – Company Secretary (Name of body or officer authorising release – see note 4)
Notes
-
This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
-
If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
-
Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
-
If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.
-
If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.
ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.
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