Australian domiciled exploration and development company Cyclone Metals (ASX:CLE) reports it has expanded its iron ore exploration portfolio with the acquisition of the largest undeveloped magnetite deposit in the world, the Block 103 Magnetite Iron Ore Project in Canada.
The company says a 100% interest in the Block 103 project was acquired following its acquisition of the project’s current owner, Canadian publicly traded company Labrador Iron, for consideration of just under 2.2 million company shares being issued to Labrador Iron shareholders at a price of $0.0025 per share. .
The project represents the ‘largest’ undeveloped magnetite iron ore project in the world, accounting for 99% of Canada’s iron ore and boasting a current inferred Mineral Resource Estimate (MRE) of 7.2 billion tonnes at 29.2% iron (Fe).
Speaking on the acquisition, Cyclone Metals’ Executive Director, Tony Sage says: “We are very pleased to announce the acquisition of such a high-potential magnetite iron ore project in close proximity to other major iron ore producers and developers in a world class mining province and a Tier 1 jurisdiction on Newfoundland and Labrador, Canada.
“We are very pleased to announce the acquisition of such a high-potential magnetite iron ore project in close proximity to other major iron ore producers and developers in a world class mining province and a Tier 1 jurisdiction…”
We see tremendous potential for Block 103 to become a crucial piece of the iron ore supply worldwide whilst promoting the reduction of carbon emissions in the steel industry.”
Cyclone Metals also notes that this acquisition positions it in comparison to other major iron ore players on the ASX and other exchanges.
In addition, the global shift towards clean energy and reductions in global carbon emissions positions magnetite ores as more desirable than hematite ores, due to the fact that they are expected to play a vital role in further reducing the steel industry’s environmental footprint.
Meanwhile, Cyclone reports that prior to the completion of the transaction it will undertake a capital raising of no less than $1 million, with the potential for oversubscriptions up to $2 million at an issue price of $0.0025 per share.
The company states that funds raised will be applied toward initial work on the project, costs of the transaction and general working capital.
The Block 103 project is located within the heart of the Labrador Trough and covers a total landholding of 7,275 hectares about 30km northwest of the mining town of Schefferville, Quebec. In addition, the deposit is strategically located adjacent to Tata Steel’s iron ore operations in the same area and is proximal to existing multi-user iron ore rail network, connecting to deep water shipping port and making it ideal for large-scale iron ore production.
To date, total drilling conducted at the project now stands at 115 drillholes aggregating 28,021m which have defined 2 zones of mineralisation consisting of the Northwest Zone and the Greenbush Zone.
Cyclone Metals is an Australian domiciled mineral development and investment company that has interests in several exploration and mining projects, providing exposure to copper, gold, iron ore, lithium, rare earths, uranium and lead-silver-zinc assets across Australia, Europe, Africa and South America.
Images: Cyclone Metals Ltd
