The Surefire Resources NL (ASX: SRN) share price is on fire today amid an exploration update.
The explorer's shares are currently trading at 5.2 cents, an 8% gain. However, in earlier trade Surefire shares surged 18.75% to 5.7 cents before retreating. For perspective, the S&P/ASX 200 Resources Index (ASX: XJR) is down 0.59% at the time of writing.
Let's take a look at what the company reported today.
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Why is the Surefire Resources share price surging?
A preliminary scoping study found the company's Victory Bore project could contain 2.263 billion pounds of vanadium pentoxide.
This project, 100% owned by Surefire, is located in Yilgarn, Western Australia. It includes the Victory Bore deposit and Unaly Hill deposit.
Test work showed three products can be extracted from the ore. This includes vanadium pentoxide flake, ferrovanadium (FeV) and magnetite concentrate suitable for 'green' pig iron production.
Surefire will assess the optimal production method for the best profit and shareholder returns.
Commenting on the news, the company's managing director Vladimir Nikolaenko said:
Surefire is well positioned to have the Victory Bore Vanadium Project enter the market at a critical time in the vanadium industry.
Excellent metallurgical properties and straight forward mining and beneficiation will put the project at the low end of the cost curve.
The company said the update confirms the economic viability of the project.
Today's news amends a release yesterday afternoon, where the company reported the deposit had just 2.263 million pounds of the compound.
Share price snapshot
The Surefire Resources share price has surged 93% in a year, while it is rocketing 333% year to date.
In the past month, Surefire shares have soared 225%, while they are up 68% in the past week alone.
For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned around 4% over the past year.
Surefire has a market capitalisation of about $59 million based on the current share price.
