The Conversation (0)
Cyclone Metals Limited (ASX: CLE) (Cyclone or the Company) is focused on developing its flagship Block 103 Magnetite Iron Ore Project. The Company also has investments in several exploration and mining projects, providing exposure to lithium, iron ore, copper and gold, assets globally (refer to Annexure 2) which include shares in listed ASX entities valued at $6.4m as of 30 October 2023.
PROJECTS
Block 103 Iron Ore Project
Block 103 Summary
Block 103 magnetite iron ore project (Block 103) is located in the Labrador Trough in Canada next to the town of Schefferville and is within 20km of an open access heavy haul railway directly connected to the Port Sept Isles iron ore export facility (refer Figure 1).
As announced on the 20th of June 2023, Block 103 is a well-advanced project supported by an Inferred Mineral Resource of 7,200 Mt @ 32% Fe which has been reported in accordance with the provisions of both with the JORC 2012 code and the NI 43-101 standards.
Figure 1 - Location of Block 103
A Preliminary Economic Assessment( PEA) study was completed by BBA Inc, of Toronto, in June 2013. This report is publicly available in the SEDAR** database and concludes that a high-quality magnetite concentrate grading 69.5% Fe can be produced through mechanical beneficiation and that blast furnace quality pellets can be produced and shipped to the Sept Isles port for a cash cost of USD 47 /t FOB. For reference, as of 25 October 2023 blast furnace pellets traded at USD 143/t CIF China with shipping costs ~ USD 26 /t which theoretically would deliver a net cash profit of ~USD 70/t. The PEA report envisages a yearly production of 16.6 Mta of blast furnace pellets.
Block 103 benefits from a low stripping ratio of 0.4, is a relatively soft magnetite ore and has access to cheap hydropower – all of which contribute to a low cash cost described above, but more importantly drives an extremely low carbon footprint.
For more detailed information, please refer to the CLE announcement dated 17 April 2023.
** www.sedar.com .Filter by search company database, then Document type: Technical report NI 43-101 and Company name: M3 Metals. Date of filling: 2013
Block 103 Quarterly Activities to end of September 2023
Cyclone is pleased to report that its operational activities are on track, and fully aligned with the operational plan disclosed in June 2023. The leadership team is hopeful that all operational milestones planned by end of Q4 2023 will be achieved – which would substantially de-risk the project.
Click here for the full ASX Release
This article includes content from Cyclone Metals Ltd., licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
CLE:AU
Types of Iron Ore: Hematite vs. Magnetite
What is hematite ore?
Hematite ore, also called direct-shipping ore, has naturally high iron content suitable for steelmaking. Because of its high iron content, hematite ore must undergo only a simple crushing, screening and blending process before being shipped off for steel production. For that reason, hematite ore is important for many mining companies.
Hematite ore is found throughout the world, with major production hotspots being Australia, Brazil, China and India.
In Australia, hematite has been the primary type of iron ore mined since the early 1960s. Nearly all of Australia's iron ore exports are high-grade hematite ore, and the majority of its reserves are located in the Hamersley mountain range of Western Australia because the range sits on a banded iron formation.
BHP (ASX:BHP,LSE:BHP,NYSE:BHP) is Australia’s leading iron ore producer and has several mining and processing hubs in Western Australia. Rio Tinto (ASX:RIO,LSE:RIO,NYSE:RIO) is also a major iron ore producer in the country, especially in the Pilbara region. One of its key iron producing operations is the Hope Downs iron ore complex, a 50/50 joint venture with Gina Rinehart's Hancock Prospecting.
Brazil is another of the world’s main sources of hematite ore. The country's Carajás mine, operated by major miner Vale (NYSE:VALE), is the largest iron ore mine in existence. Vale consistently ranks among the world's five largest mining companies and is the world's biggest producer of iron ore pellets. Its primary iron ore assets are in the Iron Quadrangle region of Brazil's Minas Gerais state.
A great deal of hematite ore is also mined in China. Known reserves include the Tung-Yeh-Chen and Dongye hematite ore deposits.
What is magnetite ore?
Mishainik / Adobe Stock
The mineral magnetite is a highly magnetic mineral found in solid and crystal forms. Magnetite actually has higher iron content than hematite. However, while hematite ore generally contains large concentrations of hematite, magnetite ore tends to hold low concentrations of the mineral magnetite. As a result, this type of iron ore ore must be concentrated before it can be used to produce steel. Magnetite ore’s magnetic properties are helpful during this process.
Magnetite ore may require more treatment than hematite ore, but end products made from magnetite ore are typically of higher quality than those made from hematite ore. That’s because magnetite ore has fewer impurities than hematite ore; in this way, the elevated cost of processing it can be balanced out.
Magnetite ore is currently mined in Minnesota and Michigan in the US, as well as in taconite deposits in Eastern Canada. A major mining site in Michigan is the Marquette Range, which hosts four types of iron ore deposits, including both magnetite and hematite ore.
In Minnesota, magnetite ore is mined mainly in the Mesabi Range, one of the four ranges that make up the state's Iron Range. Cleveland-Cliffs (NYSE:CLF) is a major player in the magnetite ore industry and the largest iron ore pellet producer in North America. Its Hibbing Taconite joint venture in Minnesota’s Mesabi Range has an annual capacity of around 7 million metric tons of magnetite ore.
In Canada, many mining companies focus on exploration and development in the iron-rich Labrador Trough, which runs through parts of the provinces of Québec and Newfoundland and Labrador.
This is an updated version of an article first published by the Investing News Network in 2013.
Don’t forget to follow us @INN_Resource for real-time news updates.
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
