Cyclone Metals Ltd (ASX:CLE) has established a maiden JORC-compliant mineral resource of considerable scale and quality at the Block 103 Magnetite Iron Ore Project in the iron-rich Labrador Trough region of Newfoundland, Canada.
The inferred mineral resource estimate (MRE) of 7.2 billion tonnes contains 29.2% total iron and 18.9% magnetic iron.
Importantly, there is plenty of upside potential as the MRE is based solely on the Greenbush zone which represents only around 25% of Block 103’s total mineralised area.
“Pleased with scale and quality”
Cyclone Metals CEO Paul Berend said: "We are extremely pleased with the scale and quality of the maiden iron ore mineral resources of Block 103.
"What makes this project exciting and unique is that the Block 103 mineral resource is located less than 20 kilometres from an open access heavy haul railway and is very soft and easy to upgrade to 69.5% Fe concentrate.”
69.5% grade; low deleterious elements
Supporting the company’s confidence in bringing the project to production in the short term are the initial metallurgical test-work results highlighting the production of high-quality concentrate grading 69.5% iron with low deleterious elements.
This was achieved consistently through the simple and relatively cost-effective methods of one-stage grinding and wet magnetic separation.
What’s more, the low Bond Work Index BWi (kWh/tonne at P80 32µm) of 15.5 is expected to drive low grinding costs with this being enhanced by access to cheap renewable hydropower.
BWi “very encouraging”
"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,” Berend said.
“A BWi of 15.5 is very encouraging – particularly combined with the access to plentiful renewable energy, which is fantastic from a sustainability perspective.
"In comparison, the BWi of FMG’s comparable Iron Bridge project in Australia is 40."
Testing has also resulted in a very high iron magnetite recovery rate of 93.7% by mass.
About the MRE
Burnt Shirt Pty Ltd was requested by Cyclone to prepare a Competent Persons Report on the Block 103 Project where iron mineralisation mainly consists of magnetite (Fe3O4) and haematite (Fe2O3).
The new MRE is based on an estimate prepared in 2013 by Watts, Griffis and McOuat (WGM) for CapEx Mining Ltd in accordance with the Canadian NI43-101 standard.
The mineralisation has been classified in accordance with the provisions of the Australian Joint Ore Reserves Committee (JORC Code) and has been classified as inferred due to the wide spacing of drilling in a large deposit which demonstrated global uniformity but localised variation.
Cyclone advises that confidence in the classification of the mineralisation will increase with confirmatory drilling.
READ: Cyclone Metals completes acquisition of large, high-quality magnetite iron ore resource in Labrador Trough
On April 17, 2023, CLE announced the acquisition of 100% of Labrador Iron Pty Ltd, which owns 100% of Block 103.
The Block 103 Project, which was acquired by CLE from M3 Metals Corporation, of Vancouver, Canada, is in the Churchill Province of the Proterozoic Labrador Trough.
This extends for more than 1,100 kilometres along the eastern margin of the Superior Craton from Ungava Bay to Lake Pletipi, Québec.
Work priorities
Cyclone Metals is committed to advancing metallurgical test work, environmental mitigation studies, engineering studies and mine development studies to identify the optimum pathway to maximise shareholder value in the shortest possible timeframe.
The company’s immediate priorities for the next 12 months are:
- To complete baseline environmental studies;
- Engage with the first nations and local stakeholders;
- Refine metallurgical test work and produce bulk concentrate and pellet samples for steel production test work (to tailor the iron ore product to buyer requirements and lock in offtake agreements);
- Complete scoping and pre-feasibility studies and define optimum operating model (production of direct shipping ores, magnetite concentrates and/or pellets);
- Complete additional drilling campaigns to refine the mineral resource and mining model;
- Start building strong local capability (in Labrador and neighbouring Quebec) to develop and operate Block 103; and
- Secure the right industrial and local operational partners.