Cyclone leaves Aussie gold for more fine-looking magnetite
Cyclone Metals is freeing up cash for its impressive Block 103 magnetite project after announcing the divestment of its non-core gold assets in Australia and New Zealand for $4 million.
Cyclone Metals (ASX:CLE) will sell its Nickol River project in WA Pilbara, as well as the Longwood Range Gold Copper PGE Project, Mareburn Gold Project, Macraes South Gold Project, Drybread – Waikerikeri Gold Project, and Muirs Gold Project located on the North and South Islands of New Zealand to British Virgin Islands-based Moosh Moosh Ltd, retaining a 1% net smelter royalty on any minerals extracted from the tenements down the line.
This gives CLE more liquidity to “fully focus” on the development of the Block 103 project, it says.
“This sale of non-core assets illustrates our commitment to the development of our world-class iron ore project Block 103; whilst ensuring that our investors retain exposure to the upside of these gold assets via a royalty stream and/or equity stake,” CLE CEO Paul Berend said.
“Both Block 103 and these gold assets will benefit from a dedicated management team and board.”
After recently defining a huge maiden resource of 7.2 billion tonnes @ 29.2% total iron (18.9% magnetic iron) from just ~25% of the total target area of the project, it’s no wonder Cyclone has packed up everything in Australia and NZ and raced off to Canada.
Block 103 is in the Labrador Trough – one of the largest iron ore belts in the world and hosts 99% of Canada’s iron ore where producers such as Rio Tinto, Champion Iron and Tata Steel operate.
Block 103’s material is also easily upgradeable to 69.5% Fe magnetite concentrate, for which there is an increasing as this material has a lower carbon foot print.
Berend said perhaps the most exciting part about Block 103 is that it’s only ~20km away from heavy haul rail – hugely important for transporting bulk tonnage to an export port.
“Combine this with a low 0.4% stripping ratio and access to plentiful and cheap renewable energy in the form of nearby hydropower (which is fantastic from a sustainability perspective), and you’ve got potentially a very low cost mining operation”
“Our main focus now is metallurgical test work to demonstrate that we can produce a very high quality and low carbon footprint product, as well as updating the engineering and scoping study as we work towards mine development.”
This article was developed in collaboration with Cyclone Metals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.