Cyclone’s Block 103 is truly an iron ore giant with maiden 7.2Bt JORC resource

Cyclone can now say with utmost confidence that it has the world’s largest, undeveloped magnetite iron ore project after defining a massive maiden Inferred resource for Block 103 in Canada’s Labrador Trough.

And if the resource of 7.2 BILLION tonnes grading 29.2% total iron (18.9% magnetic iron) wasn’t enough to stoke your fancy, how about the fact that the material is easily upgradeable into a high-quality 69.5% iron concentrate or that the resource is based only on the Greenbush zone, which covers just 25% of the total target mineralised area.

Cyclone Metals (ASX:CLE) chief executive officer Paul Berend adds that in addition to easily upgradeable ore, what makes Block 103 exciting and unique is being located less than 20km from an open access heavy haul railway as well as access to plentiful (and cheap) renewable hydropower, which he described as “fantastic from a sustainability perspective”.

“We are extremely pleased with the scale and quality of the maiden iron ore mineral resources of Block 103,” he added.

Easily upgradeable material

Magnetite iron ore at Block 103 is very soft – with a Low Bond Work Index (BWi) of just 15.5 making it extremely easy to mine.

By comparison, Fortescue’s comparable Iron Bridge project in Australia has a much higher BWi of 40.

Initial metallurgical testwork has also consistently achieved the production of a high-quality concentrate containing 69.5% iron with low deleterious elements using a simple one stage grinding and wet magnetic separation process.

Recoveries are also very high with an average of 93.7% by mass.

Proven iron ore province

Block 103 is Labrador Trough, one of the largest iron ore belts in the world accounting for 99% of Canada’s iron ore that also hosts existing producers such as Rio Tinto, Champion Iron and Tata Steel.

Previous exploration on the project was focused on Greenbush, a 10km long by 5km wide zone that was subjected to mapping, geophysical surveys and 43 diamond holes in 2011 and a further 72 holes in 2012.

The drilling covered an approximate northwest-southeast strike length of 4km by 2.5km and tested mineralisation to a vertical depth of approximately 450m.

Next steps

Over the next 12 months, Cyclone will advance the development of Block 103 by completing baseline environmental studies, engage with the First Nations and local stakeholders, and refine its metallurgical test work and produce bulk concentrate and pellet samples for steel production test work.

It also intends to complete scoping and pre-feasibility studies and define optimum operating model, complete additional drilling campaigns to refine the mineral resource and mining model, start building strong local capability to develop and operate the project, and secure the right industrial and local operational partners.

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.