Cyclone Metals Limited (ASX: CLE) has acquired Labrador Iron Pty Ltd, 100% owner of the Block 103 Magnetite Iron Ore Project, located 30km northwest of Schefferville, Quebec, Canada.
“We are very pleased to announce the acquisition of such a high-potential magnetite iron ore project in close proximity to other major iron ore producers and developers in a world class mining province and a Tier 1 jurisdiction of Newfoundland and Labrador, Canada,” Cyclone Executive Director, Tony Sage, said.
“The strategic geographical position of Block 103 with established infrastructure, services, and transport corridors, greatly supports the development potential of the asset.
“The presence of neighbouring mines run by Tier 1 producers including Tata Steel, likewise, offer many future operational opportunities for Cyclone.”
Mr Sage says Block 103 is the largest undeveloped magnetite deposit globally and comparable to other world-class producing assets and large developers.
“The acquisition positions Cyclone in comparison to other major iron ore players on the ASX and other exchanges.
“The green transition and global targets towards net-zero carbon emission have made magnetite ore more desirable as it will be pivotal in emissions reduction for the iron ore and steel industries. We see tremendous potential for Block 103 to become a crucial piece of the iron ore supply worldwide whilst promoting the reduction of carbon emissions in the steel industry”.
Historical Drilling
Block 103 is considered to be the largest undeveloped magnetite iron ore project in the world having a historical mineral resource of 7,200Mt @ 29.2% Fe, classified as Inferred in accordance with the provisions of the Canadian NI 43-101.
Total drilling now stands at 115 drillholes aggregating 28,021 m. Two zones of mineralization have been defined on the Property: namely the Northwest Zone and the Greenbush Zone. Most of the drilling, including all of the 2012 drilling programme, has been done to explore and extend the Greenbush Zone.
The 2012 programme focussed on the Greenbush Zone and comprised 72 drillholes aggregating 22,359 m. Drilling was completed along grid lines 500 m to 600 m apart. The distance between holes varied but the hole collars were often less than 200 m apart. The drilling covered an approximate NW-SE strike length of 4 km by 2.5 km and tested mineralization to a depth of approximately 450 m vertical.
The Greenbush Zone is defined as a portion of the Sokoman sequence in the north part of the Property, adjacent to Greenbush Lake, and was the focus for most of the drilling programme. As currently defined, the Greenbush Zone is approximately 10 km long NW-SE and five km wide SW-NE and encompasses the area of the 2013 Mineral Resource Estimate.
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