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Cyclone Metals Limited (ASX: CLE) (Cyclone or the Company) is pleased to report the latest 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.
- Direct Reduction (DR) magnetite concentrate produced grading 70.6% Fe with very low deleterious elements and silica below 1.2 % which is world class
- High recovery rate of over 80% for total Fe
- The current estimated market price this DR magnetite concentrate is USD 167/t CFR China1 which represents a premium of 30 USD/t above the 62% Fe benchmark
- DR concentrate was achieved simply by adding a reverse flotation step to the Iron Bear Blast Furnace (BF) concentrate (as outlined in the ASX release dated 28/11/23)
- The optimum process flow sheet and associated mass and energy balances have been defined and calibrated. This will flow into the pilot plant design and scoping study – both of which are underway
- The production of bulk samples of BF and DR magnetite concentrates using an industrial grade pilot plant is planned to commence next week
Cyclone CEO, Paul Berend, commented: “We have achieved another very exciting milestone in the development of our flagship Iron Bear Project by demonstrating that we can easily produce a world class magnetite DR concentrate grading 70.6% Fe, with ultra-low silica and no deleterious elements. If we can demonstrate that our DR concentrate is a good source material to produce DR grade pellets, then we will be able to provide European steel producers with a realistic solution to reduce the carbon footprint of their existing blast furnace-based steel mills. We still have months of test work ahead of us to conclusively demonstrate this – but we will be able to provide steel mills with large bulk samples of both products as early as Q1 next year. This should enable us to start meaningful JV discussions.”
Flash Operational Update
Cyclone is pleased to report that it remains on track to achieve its key Strategy on a Page (SOAP) operational milestones planned in calendar year 2023. Some elements of milestone 5 (mineral resource upgrade) might be delayed until February 2024, but the design of the pilot plant (milestone 7) and delivery of bulk samples (milestone 6) are running ahead of schedule.
The achievement of milestone 4 is significant as it demonstrates that Iron Bear / Block 103 could potentially be one of a handful of iron ore producers with the capability to produce premium DR grade concentrates. These high-quality magnetite concentrates are critical for the steel industry to reduce their carbon footprint and are expected to replace less fuel-efficient Direct Shipping Ores currently produced mainly in Australia and Brazil. Access to a large and low-cost source of DR grade magnetite concentrate could provide a very substantial structural competitive advantage to a steel mill producing in Europe, or exporting to Europe.
Concurrently, the Company is working on upgrading 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 and also increase the size of the JORC inferred status by correlating the high-definition magnetite survey with the drilling results and applying the appropriate geological constraints. It is important to note that the outcome of this geological work is uncertain, and it is possible that no mineral resource upgrade will be achieved.
Cyclone is committed to being transparent with stakeholders and investors and will update progress on the SOAP on a regular basis.
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.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
