Cyclone Metals' Metallurgical Test Work Results

Cyclone Metals Limited (ASX:CLE) has announced the successful completion of the first phase of metallurgical test work for its flagship Block 103 / Iron Bear Magnetite Iron Ore Project in Canada. The results include the production of blast furnace magnetite concentrate grading 68.7% Fe with very low deleterious elements and silica below 3.5%, along with very high recovery rates for magnetite Fe. The current market price for this high-grade concentrate represents a premium of 25 USD/t above the 62% Fe benchmark. The company is also working on defining a premium direct reduction (DR) magnetite concentrate with even higher Fe and lower silica levels to cater to the steel industry's demand for ultra-low carbon steel production.

Executive Commentary on Iron Bear Project

Cyclone CEO, Paul Berend, expressed his satisfaction with the achievement, highlighting the significant milestone in the development of the Iron Bear Project. He emphasized the potential of the deposit, the access to infrastructure, and the future prospects of the project. Berend also outlined the company's efforts to introduce a unique premium product to the steel industry, targeting the first quarter of the upcoming year. The company's commitment to reducing the carbon footprint and its focus on producing a premium ultra-low silica direct reduction magnetite product were also underscored.

Summary of Metallurgical Test Work Results

Cyclone Metals has successfully produced a high-grade blast furnace magnetite concentrate with exceptional recovery rates and low silica levels, positioning the company to capture a premium in the market. The ongoing work to define a premium direct reduction magnetite concentrate with even higher Fe and lower silica levels reflects the company's ambition to cater to the steel industry's demand for ultra-low carbon steel production. Additionally, the company is on track to achieve its operational milestones and is committed to transparency with stakeholders and investors. The completion of the metallurgical test work phases by August 2024 and the potential upgrade of the mineral resource to JORC indicated status further indicate the company's strategic progress and commitment to enhancing the quality and size of its resource base.