Ann: Acquisition of Victory Bore Vanadium Tenement, page-54

Strange selloff from such good news (Victory Bore acquisition)

Especially strange since Unaly Hill + Victory Bore could very well become a mine with potentially 400mt of resource once developed more...

Unaly Hill:

Victory Bore:


So currently, we have approx: 237mt @ 0.42-0.44% V2O5, 23-25% Fe, 4.5-6.5% Ti20

For a rough comparison, we can look at TNG Limited's DFS and JORC to gauge what SRN could expect if we get a DFS down the line:

TNG JORC



So for a comparison we have, it appears our projects are better in almost every way:
bigger resource (160mt vs 237mt);
bigger tonnage expansion potential (heaps of untested strike at both prospects);
higher grade vanadium pentoxide (0.28% vs 0.42-0.44%),
similar titanium grades,
higher iron grades (23% vs ~25%)
lower Si02 (Si02 is a deleterious element)

Yet TNG has an impressive set of numbers in their DFS, most notably pre-tax net annual average cash flows of A$738million, and a whopping A$4.7B NPV at 8% discount rate. They do have a heavy CapEx requirement for Mt Peake but TNG management has expressed confidence about securing financing. Since our mine could potentially be just as good as theirs, I expect our odds of financing shouldn't be on worse terms than theirs.

Our resource grades and impurities level are better than Mt Peake in every aspect I believe. If we reach DFS stage then I expect our key physicals to be at least as good as TNG's in every way.

Bit of a delay but the geologists report for the completed DD hole is coming up soon - then likely a scoping study of sorts for Unaly Hill + Victory Bore. Combined with the soon to commence RC drilling, this should put us on track for PFS before Christmas?. For reference, AVL is at this stage and sitting at ~100mil MC. We are ~$5mil. We also have Kooline at which I understand exploration is also being advanced.




For any questions, I recommend getting in touch with any of the directors. The phone number can be found on the website.