Join our daily newsletter At The Bell to receive exclusive market insights
Cyclone Metals Ltd (ASX: CLE), an iron ore developer which has built its business around progressing Canadian magnetite play Iron Bear, has pulled grades beyond 71 percent through the first phase of pilot plant test work to produce concentrate.
Five hundred kilograms of source sediment – with a grade of 29.1 percent iron – was put through the small-scale pilot plant, producing a direct reduction concentrate with grades of 71.3 percent iron and 1.1 percent silica.
Cyclone’s choice to produce direct reduction concentrate is based on the critical role this form of concentrate plays in enabling large scale green steel production.
In addition to this concentrate, the test work also revealed the possibility of producing a blast furnace concentrate with grades of 69.8 percent iron and 3.4 percent silica, plus an additional recovery RF (reverse flotation) concentrate with grades of 68.3 percent iron and 4 percent silica to boost overall recovery.
Having completed this phase of testing, Cyclone is now looking ahead to Phase 2, which will involve 7,000 kilograms of source sediment: this is set to yield larger samples for pelletising test work.
At the same time, the company is preparing to send 68 kilograms of the direct reduction concentrate to clients for them to consider their own test work and off take agreements.
CEO Paul Berend said he was pleased with the quality of ore discovered at the project, located near the border of Newfoundland and Labrador and Quebec, which holds an indicated and inferred mineral resource of 16.6 billion tonnes containing 29.3 percent total iron and 18.2 percent magnetic iron.
“The first phase of the pilot test work confirms the exceptional metallurgical properties of the Iron Bear deposit,” he said.
“We were able to produce one of the highest quality magnetite concentrates in the world with very high yields in an industrial setting.
“We are now in a position to supply ultra–high quality iron ore product samples to steel mills and trading houses, and then start offtake, or joint venture discussions. These are exciting times.”
Cyclone Metals has been trading at 0.1c.
