Cyclone Metals Advances Iron Bear with New Pre-Feasibility Study

• Pre-Feasibility Study initiated for 100%-owned Iron Bear Project
• Hatch and IDOM appointed to lead technical and industrial design work
• Study covers mine design, processing, logistics, costs, and environmental factors
• Project funded by Vale under existing Development Agreement
• PFS targeted for completion in Q2 2026, following positive Scoping Study

Cyclone Metals Moves Forward on Iron Bear

Cyclone Metals Limited (ASX – CLE) has taken a significant step in advancing its flagship Iron Bear Project by launching a Pre-Feasibility Study (PFS). Situated in the Labrador Trough region of Canada, this 100%-owned iron ore venture is positioned to become a key supplier of high-grade magnetite concentrate to the global steel industry.

The company has engaged Hatch, a globally recognized engineering firm with deep expertise in large-scale iron ore projects, to lead the PFS. Complementing this effort, IDOM, a specialist in steel and metals industrial plant design, will handle the pelletising plant’s industrial design and cost estimation. Together, these firms bring a blend of international experience and technical know-how that Cyclone hopes will underpin a robust development plan.

Scope and Ambition of the Study

The PFS will delve into detailed mine design and scheduling, advanced metallurgical test work, and an evaluation of processing plant and infrastructure needs, including pelletising studies. Logistics and export options are also under review, with rail and slurry pipeline transport methods being assessed. Importantly, the study will provide capital and operating cost estimates, alongside environmental, social, and permitting considerations. Marketing studies and risk assessments will round out the comprehensive evaluation.

This initiative builds on the positive outcomes of the Scoping Study released in August 2025, aiming to sharpen the project’s technical, operational, and financial parameters. Cyclone targets completion of the PFS by the second quarter of 2026, with key milestones to be communicated as the study progresses.

Strategic Partnership and Funding

Funding for the PFS and associated development activities is provided by Vale, a major global mining company, under a Development Agreement announced earlier this year. This partnership not only alleviates financial risk for Cyclone but also signals strong industry confidence in Iron Bear’s potential. While some schedule adjustments have been made; shifting the transition from Phase 1 to Phase 2 from April to June 2025 to accommodate regulatory and operational factors; the project remains on track to meet its key milestones.

Paul Berend, Cyclone’s CEO and Managing Director, highlighted the strategic importance of this phase, noting the growing global demand for low-emission, high-grade iron ore products. He emphasized Iron Bear’s unique position to meet future market needs and expressed optimism about demonstrating the project’s economic and strategic value through the PFS.

Looking Ahead

As Cyclone Metals advances the Iron Bear Project through this critical phase, investors and industry watchers will be keenly observing the PFS outcomes and Vale’s subsequent decisions regarding project progression. The study’s findings will be pivotal in shaping the project’s development roadmap and its role in the evolving iron ore market, particularly amid increasing emphasis on sustainable and low-emission steelmaking inputs.

Bottom Line?

Iron Bear’s PFS launch marks a pivotal moment, setting the stage for Cyclone Metals to unlock value amid shifting global iron ore dynamics.

Questions in the middle?

• How will the PFS outcomes influence Vale’s decision to proceed to Phase 2?
• What are the potential cost implications revealed by the pelletising and logistics studies?
• How will environmental and permitting challenges impact the project timeline?