Cyclone Metals advances its flagship Iron Bear Project despite a minor delay in drilling caused by First Nations election disputes, while strengthening its cash position through significant share sales.
- Pre-Feasibility Study launched and on track for April 2026 completion
- Phase 1 drilling delayed to Q1 2026 due to First Nations election challenges
- Successful community engagement resumed with newly elected Makimetush Innu leadership
- Raised approximately $14.3 million from post-quarter share sales
- Environmental and metallurgical test work progressing, including dry tailings innovation
Progress Amid Challenges
Cyclone Metals Limited (ASX – CLE) has provided a comprehensive update on its Iron Bear Project in Canada for the quarter ending 30 September 2025. The company formally launched its Pre-Feasibility Study (PFS), aiming for completion by April 2026, marking a significant milestone in advancing this large-scale iron ore development in the Labrador Trough.
Despite this progress, the Phase 1 drilling program has been postponed from summer 2025 to the first quarter of 2026. This delay stems from a protracted election dispute within the Makimetush Innu First Nation community, which temporarily stalled essential consultations. Cyclone and its partner Vale S.A. have emphasized that respectful and collaborative engagement with local Indigenous communities is critical for the project's long-term sustainability.
Community Engagement and Environmental Stewardship
Following the resolution of the Makimetush Innu leadership election, Cyclone's CEO engaged constructively with the newly elected Chief and Band Council in early October, unlocking the path forward for field activities. This engagement underscores the company's commitment to meaningful partnerships with First Nations, a vital factor in securing social license to operate.
Environmental initiatives continue apace, with extensive field surveys covering wildlife monitoring, water sampling, and air quality assessments. Notably, Cyclone completed successful drying test work on concentrate and waste streams, advancing a dry tailings solution that could eliminate the need for a tailings dam; an innovation likely to enhance the project's social acceptability and environmental footprint.
Financial Position and Corporate Developments
Financially, Cyclone strengthened its position post-quarter by selling shares in listed ASX entities, generating approximately $14.3 million. This inflow bolsters the company's cash reserves to $15.5 million, providing a solid foundation to support ongoing development activities.
On the corporate front, a recent shareholder meeting resulted in the removal of Director Tony Sage, while other proposed director removals were not carried. The company also reported minor operational incidents, including a non-serious ATV accident with no lost time injuries, reflecting ongoing attention to health and safety protocols.
Broader Asset Portfolio and Outlook
Beyond Iron Bear, Cyclone continues exploration efforts in New Zealand and Australia, with geochemical sampling underway at its Grand Port Projects and ongoing evaluation of the Wee MacGregor and Nickol River projects. These activities diversify the company's asset base and potential growth avenues.
Looking ahead, the company remains focused on delivering the PFS on schedule, refining metallurgical processes, and maintaining strong community and environmental engagement. The delay in drilling, while a setback, appears manageable within the broader development timeline agreed with Vale.
Bottom Line?
Cyclone Metals balances community relations and technical progress, setting the stage for critical project decisions in 2026.
Questions in the middle?
- How will the Phase 1 drilling delay impact the overall Iron Bear project timeline and capital expenditure?
- What are the implications of the recent boardroom changes for Cyclone’s strategic direction?
- Can the dry tailings technology be scaled effectively to reduce environmental risks and costs?