Pilot Plant Delivers Iron Ore Concentrate Grading 71.3% Fe and 1.1% SiO2 with High Yields

Cyclone Metals Limited (ASX: CLE) (Cyclone or the Company) is pleased to announce the results of Phase 1 of the pilot plant test work for its flagship magnetite Iron Bear project.

HIGHLIGHTS

• 500 kg of source sediment grading 29.1% total Fe processed in a small-scale pilot plant
• Production of a Direct Reduction concentrate grading 71.3% Fe (from 70.6% Fe¹) and 1.1% SiO₂ (from 1.2% SiO₂) with a total magnetic Fe yield of 85.1%2 (from 80%¹)
• Direct Reduction concentrate is critical to enable large scale green steel production based on Direction Reduction technologies
• Production of a Blast Furnace concentrate grading 69.8% Fe (from 68.7%³) and 3.4% SiO₂ with a total magnetic Fe yield of 97.6% (from 97.0%³)
• Production of an additional recovery RF (Reverse Flotation) concentrate grading 68.3% Fe and 4% SiO₂ to increase overall recovery²
• Extremely low deleterious elements in all concentrate products, including Al₂O₃, MnO, P₂O₅, CaO, etc…
• 68 kg of Direct Reduction concentrate ready to be provided to potential clients for tests work and potential off take agreements
• Phase 2 pilot test work started with 7,000 kg of source sediment to produce larger samples for pelletising test work and further metallurgical test work

Paul Berend, CEO of Cyclone Metals, commented:

"The first phase of the pilot test work confirms the exceptional metallurgical properties of the Iron Bear deposit. We were able to produce one of the highest quality magnetite concentrates in the world with very high yields in an industrial setting. We are now in a position to supply ultra–high quality iron ore product samples to steel mills and trading houses, and then start offtake / JV discussions. These are exciting times.”

Location and Infrastructure

The Iron Bear Project consists of ten licenses totalling 7,275 ha on 291 graticular Mineral Claims under the applicable Labrador and Newfoundland mining regulation, located near the Provincial border of Newfoundland and Labrador and Quebec, approximately 30 km northwest of the town of Schefferville and 1,200 km northeast of Montréal.

Figure 1: Iron Bear - Regional Access and Infrastructure

The Iron Bear properties are located within 25 km of an open access heavy haul railway which is directly connected to the Sept Isles and Pointe Noire iron ore export ports. In addition, the Iron Bear has potential access to cheap renewable energy from the Menihek hydro-plant located 75km away. These two factors substantially improve the prospects for eventual economic extraction of the Iron Bear mineral resource.

Notably, large scale iron ore export operations currently operate in the Labrador Trough; including IOC (Rio Tinto), Champion Iron and Tata Steel; all sharing the same rail and port infrastructure.

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