When explorers report an important sediment discovery, it’s typically the result of structured exploration; for Cyclone Metals (ASX:CLE), however, it’s come from sea containers in Canada.
The $10.26 million market capitalisation company has discovered more than 15 tonnes of sediment cores from its recently acquired Block 103 Magnetite Iron Ore Project in sea containers in Schefferville, Quebec.
These cores have been stored in the 40-foot containers for over 10 years.
Upon making the discovery, Cyclone selected and logged 10 tonnes of these cores to be shipped to a metallurgical laboratory in Quebec City.
Now, the company reports that the early metallurgical testwork and flowsheet design results from these cores are ‘encouraging’. The final specifications for the blast furnace-grade magnetite product are expected by the end of this month.
Moreover, Cyclone says it has collected enough sediment to complete metallurgical testwork through to the end of 2024. This work will include the production of bulk samples of premium-grade direct reduction (DR) magnetite concentrates and pellets and the operation of an industrial pilot plant.
Cyclone Metals CEO Paul Berend says the company was ‘fortunate’ to have found the sediment core in good condition, which meant it could complete a bulk testwork program without needing to complete any extra drilling or trenching in the Block 103 area.
“This will save us over a year compared to our peers.”
“This will save us over a year compared to our peers.”
Cyclone acquired the Block 103 project — touted by the company as the largest undeveloped magnetite iron ore deposit on the planet — back in January 2023.
In July, the company first reported that it had accessed 4 sea containers that were being used to store 19 tonnes of taconite drill core, which was still in good condition.
The ongoing metallurgical testwork on the selected cores from these sea containers will be a ‘key factor’ in determining the economic viability of the Block 103 mineral resource, according to Cyclone.
Alongside its Canadian asset, Cyclone Metals owns the Wee Macgregor Copper Project in Queensland, the Nickol River Gold Project in Western Australia, and the Kukuma Iron Ore Project in Sierra Leone, Africa.
On November 14, Cyclone secured $1.32 million via the issue of secured notes to CPS Capital Group to fund ongoing work at Block 103.
Write to Joshua Smith at Mining.com.au
Images: Cyclone Metals
