Cyclone (ASX:CLE) get heavy at Block 103

Cyclone Metals has unfurled a mammoth inferred mineral resource, bringing 7.2 billion tonnes at 29.2 per cent total iron with 18.9% magnetic to its Block 103 Project in Canada’s Labrador Trough iron ore belt.

The maiden resource covers just a quarter of the mineralised area, and the company has stated its intent to rapidly advance through metallurgy and environmental, engineering and mine development studies to optimise its pathway to development.

And early metallurgy has already returned highlights, showing consistent production of high-quality 69.5 per cent iron concentrate and very high magnetite recovery of 93.7 per cent, expected to be produced with low grinding costs from cheap and renewable hydropower.

Cyclone Chief Executive Paul Berend said the company was extremely pleased with the scale and quality of its new JORC resource.

“What makes this project exciting and unique is that the Block 103 mineral resource is located less than 20km from an open access heavy haul railway and it is very soft and easy to upgrade to 69.5% Fe concentrate,” Mr Berend said.

“The BWI index is a measure of the ‘hardness’ of the ore and typically one of the main cost drivers to produce a magnetite product,” he added.

“A BWi of 15.5 is very encouraging – particularly combined with the access to plentiful renewable energy, which is fantastic from a sustainability perspective. The BWi of FMG’s similar Iron Bridge project in Australia is 40.”

Fortescue’s Andrew Forrest said it was the most significant relief of his career when Iron Bridge began churning out at 68 per cent. Producing the high-iron magnetite with a premium price tag was worth all the trouble.

Canadian iron

While Canadian iron production is relatively small compared to major producers like Australia and Brazil, its Labrador Trough belt is a central producing region, hosting large deposits of high-grade ore.

And Cyclone now holds one of its own. It has a busy year ahead, with development studies, local engagement, and development and operational partnerships on the list for the next 12 months as it continues drilling and tailoring a high-value product for its potential buyers.

Project location map

CLE.AX

CYCLONE FPO [CLE]

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CYCLONE FPO [CLE]

Sector: Basic Materials

Industry: Other Industrial Metals & Mining

Employees:

Cyclone Metals Limited, together with its subsidiaries, engages in the investment, exploration, and evaluation of mineral properties in Australia. The company explores for nickel, lithium, iron, copper, and gold deposits. Its flagship project is the Iron Bear iron ore project located in Schefferville, Quebec, Canada. The company was formerly known as Cape Lambert Resources Limited and changed its name to Cyclone Metals Limited in October 2020. Cyclone Metals Limited was incorporated in 2000 and is headquartered in West Leederville, Australia.

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