Significant Mineral Resource Upgrade for Project Iron Bear

Cyclone Metals Limited (ASX: CLE) (Cyclone or the Company) is pleased to announce the release of an upgraded JORC compliant Mineral Resource Statement, for its 100% owned Iron Bear Iron Ore Project, located in the Labrador Trough region of Canada.

HIGHLIGHTS

• Indicated and Inferred Mineral Resource of 16.6 billion tonnes containing 29.3% total Fe and 18.2% magnetic Fe, cut-off grade 12.5% magnetic Fe.
• Indicated Mineral Resource of 2.15 billion tonnes containing 28.68% total Fe and 19% magnetic Fe.
• Upgraded mineral resource statement supported by geophysical analysis (including the development of an inversion model¹), geophysical statistical analysis and pilot plant metallurgical test work.
• Ore body characteristics suggests that reasonable prospects exist for eventual economic extraction.
  • Low stripping ratio, with negligible overburden.
  • Location less than 25 km from existing open access railway.
  • Access to local low-cost renewable hydropower.
• Pilot plant metallurgical test work confirms that reasonable prospects exist for eventual economic extraction:
  • Production of a Direct Reduction grade concentrate grading 70.6% Fe and 1.2% SiO₂ with an overall magnetic Fe yield of 88.9%²
  • Production of a Blast Furnace grade concentrate grading 68.9% and 3.4% silica with a magnetic Fe yield of 95.5%
  • Very low deleterious elements (P, MnO etc)
  • Favourable grindability indices of BWi = 16.7 kWh/t and SMC = 11.7 kWh/t

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 (NL) and Quebec (QC), approximately 30 km northwest of the town of Schefferville, QC and 1,200 km by air northeast of Montréal, QC.

Figure 1: Iron Bear - Regional Access and Infrastructure

The mineralisation is typical of the Labrador Trough, being a magnetite/hematite taconite. The Labrador Trough is a 1,600 km long and 160 km Canadian Proterozoic volcanic and sedimentary basin that extends from Ungava Bay south-southeast through Quebec and Labrador. The Labrador Trough has supported iron ore mining operations since 1954.

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