Cyclone Metals’ Iron Bear Project Hits High-Grade Concentrate Milestones
Cyclone Metals reports strong progress on its Iron Bear Project, highlighting a completed renewable energy power study and successful metallurgical test results that underpin its sustainable mining ambitions.
- Completion of Hatch-led power study endorsing 100% renewable energy supply
- Phase 4 metallurgical test work yields high-grade iron concentrates and pellets
- Engineering studies on rail and slurry pipeline advancing on schedule
- Financial position bolstered by A$1.2m reimbursement from Vale and A$5.2m cash in Canadian subsidiary
- Environmental and social baseline surveys initiated to support permitting
Renewable Energy at the Core of Iron Bear
Cyclone Metals Limited (ASX – CLE) has taken a significant step forward in de-risking its flagship Iron Bear Project in Canada with the completion of a comprehensive power study by global engineering firm Hatch Ltd. The study, conducted to AACE class 5 standards, outlines a staged approach to supplying 100% renewable energy to the mining and concentrator complex, as well as the nearby town of Schefferville.
The power supply plan is divided into three phases, scaling from 120 MW for a 10 million tonnes per annum (Mta) concentrator in Phase 1, up to 500 MW for a 50 Mta operation by Phase 3. Phase 1 relies on a combination of a new 60 MW hydropower plant at Menihek and a 280 MW wind farm, supplemented by battery energy storage. Later phases incorporate high-voltage transmission lines from the Churchill Falls hydro-plant, contingent on future upgrades.
Metallurgical Advances Strengthen Project Viability
Complementing the power study, Cyclone has successfully completed Phase 4 metallurgical test work, processing 17.7 tonnes of ore in its Quebec pilot plant. The results are promising – direct reduction (DR) concentrate grading 71% iron with ultra-low impurities, and blast furnace (BF) concentrate at 69.1% iron. Notably, flotation optimization has improved mass yields to 87-89%, a marked increase from previous 80% yields, enhancing overall product quality and recovery.
Additionally, the company produced 260 kilograms of DR pellets exhibiting excellent metallisation and physical properties, critical for low-carbon steel production. These advances feed directly into the upcoming scoping and pre-feasibility studies, reinforcing the project's technical foundation.
Engineering and Environmental Progress
Engineering workstreams are progressing well, with rail and slurry pipeline studies on track for completion in July 2025. These studies identify potential bottlenecks and infrastructure needs, ensuring logistics support for future production scales. Concurrently, environmental and social baseline surveys have commenced, led by indigenous and regional expert firms, to underpin permitting and community engagement efforts.
Financial Position and Strategic Partnerships
Financially, Cyclone reported A$1.3 million in cash at quarter-end, boosted by a A$1.2 million reimbursement from partner Vale S.A. for operational costs. The company’s Canadian subsidiary, Iron Block 103 Corporation, holds an additional A$5.2 million in cash, with a further US$5 million received post-quarter, earmarked for project development under the Vale partnership. This collaboration is pivotal, with Vale committed to funding up to USD 138 million to earn a 75% stake in Iron Bear.
Cyclone’s CEO, Paul Berend, emphasized the rapid pace of development and the project’s potential to deliver sustainable benefits to shareholders and local communities alike, powered by cutting-edge renewable technologies.
Broader Asset Portfolio and Corporate Updates
Beyond Iron Bear, Cyclone continues exploration activities in New Zealand and Australia, including geochemical sampling and geological modelling at its Grand Port and Wee MacGregor projects. The company also maintains a 20% interest in the Wee MacGregor copper project and is evaluating options for its Nickol River gold project in Western Australia.
Recent securities movements include the issuance of shares upon exercise of performance rights and the commencement of trading for new options on the ASX. The company remains on track with all key development milestones, preparing for a large drilling program in 2025 aimed at expanding mineral resources and refining mine design.
Bottom Line?
With renewable energy integration and metallurgical breakthroughs, Cyclone Metals is poised to transform Iron Bear into a low-carbon iron ore powerhouse; next steps will test the scalability and market appetite.
Questions in the middle?
- How will the timing and scale of Churchill Falls hydro upgrades impact later power phases?
- What are the expected capital expenditure ranges for each power phase and their financing implications?
- How might upcoming drilling results reshape the mineral resource and project economics?
