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Cyclone Metals Limited (ASX: CLE) (Cyclone or the Company) is pleased to report the results of the first phase of metallurgical test work performed on its flagship Block 103 / Iron Bear Magnetite Iron Ore Project (Block 103 / Iron Bear) in Canada.
- Blast furnace magnetite concentrate produced grading 68.7% Fe with very low deleterious elements and silica below 3.5%
- Very high recovery > 97% for magnetite Fe
- The current market price for this class leading blast furnace magnetite concentrate is USD 159/t CFR China1 – representing a premium of 25 USD/t above the 62% Fe benchmark
- Sediment bulk sample of 1.6t used with magnetic Fe of 17%; representative of overall deposit which has an average magnetic Fe of 18%
- Flow sheet for production of blast furnace grade concentrate being defined with high yields, recovery rates and low grinding costs
- Specifications of Block 103/ Iron Bear base blast furnace concentrate are class leading with high Fe and low silica, alumina and deleterious elements
- Metallurgical test work is ongoing to define a Block 103 / Iron Bear premium direct reduction (DR) magnetite concentrate with Fe of 70% and silica below 1.5% to enable ultra-low carbon steel production
Cyclone CEO, Paul Berend, commented: “We have achieved a major milestone in the development of our flagship Iron Bear Project by demonstrating that we can easily produce a class leading 68.7% Fe grade iron ore product with a 97% magnetite recovery. Given the massive scale of the deposit, the access to rail and port infrastructure, this is starting to look like the future. We are working hard to define a premium ultra-low silica direct reduction magnetite product which will be very attractive to European steel makers looking to reduce their carbon footprint. We are targeting to introduce this unique premium product to the steel industry as early as first quarter next year.”
Flash Operational Update
Cyclone is pleased to report that it is currently on track to achieve all its SOAP (Strategy On A Page) operational milestones planned in calendar year 2023, specifically milestones 4 and 5.
Work is currently ongoing to produce a premium DR grade magnetite concentrate (milestone 4) leveraging reverse flotation and other separation methods to reduce the levels of silica whilst maintaining high Fe recovery levels. The outcome of this metallurgical test work is anticipated by mid- December 2023, and if successful, would potentially make Block 103/ Iron Bear one of a handful of iron ore producers with the capability to produce premium DR grade concentrates.
Concurrently, we are also working to upgrade the mineral resource (milestone 5), in terms of size, and more importantly quality. Specifically, we are aiming to upgrade a portion of the mineral resource to JORC indicated status. Cyclone has been able to locate a high-quality magnetic survey of its Block 103 claims and we are working with Perth-based, Resource Potentials, to correlate this data with the existing drilling results and to leverage this to upgrade the mineral resource. This is a complex endeavour, and the outcome remains uncertain. However, if successful, this endeavour would enable Cyclone to forego a costly drilling program.
Cyclone is committed to being transparent with stakeholders and investors and will update progress on the SOAP on a regular basis.
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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.
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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.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
