Tempest Reports 63.5 Mt Inferred Iron Resource and $4.5M Yalgoo Sale

Remorse Iron Deposit Maintains Solid Resource Base

Tempest Minerals Ltd (ASX:TEM) reaffirmed its inferred mineral resource estimate at the Remorse Iron Deposit in Western Australia, reporting 63.5 million tonnes at an average grade of 30.6% iron. This estimate, prepared under the JORC Code 2012, confirms the deposit's potential as a significant magnetite resource, with laboratory tests highlighting excellent metallurgical properties that could support future processing.

Alongside this, the company outlined an exploration target with a conceptual tonnage range of 50 to 110 million tonnes grading between 30% and 32% iron, though it cautioned that further drilling is needed to upgrade this to a formal resource. Importantly, Tempest has identified the Halo Iron Target several kilometres west of Remorse, suggesting upside potential in the region.

Strategic MOU with Green Steel and Iron Signals Development Ambitions

In a notable strategic move, Tempest signed a memorandum of understanding and option agreement with Green Steel and Iron Pty Ltd (GISA), a prospective developer of a Mid-West green steel facility. The deal contemplates GISA acquiring the Remorse Iron Deposit through a share-based transaction, aiming to progress towards an initial public offering and development of a green iron and steel production hub.

GISA has also secured multiple MOUs with other magnetite producers in the region and submitted an application for the Federal Government's Green Iron Fund, which remains under consideration. This partnership positions Tempest to benefit from the growing green steel sector, though timelines and outcomes remain uncertain.

Yalgoo Gold Tenement Sale to Capricorn Metals Completed

Earlier in the year, Tempest completed the sale of its Yalgoo gold tenement package to Capricorn Metals Limited (ASX:CMM) for $4.5 million, comprising $500,000 in cash and Capricorn shares valued at $4 million based on a five-day VWAP before completion. This transaction allows Tempest to retain ferrous mineral rights over key tenements, including the Remorse Deposit, while divesting gold-focused assets.

During the quarter, Tempest sold a portion of its Capricorn shares for approximately $699,000, leaving a holding valued at over $3 million at quarter end. This stake provides ongoing exposure to Capricorn’s gold operations, including the prolific Mount Magnet region where Tempest holds multiple tenements.

Exploration Activity Paused at Range and Five Wheels Projects

Tempest did not undertake any exploration work during the quarter at its Range Project near Mount Magnet or the Five Wheels Project in the Earaheedy Basin. The Range Project, located close to major gold operations, previously yielded encouraging shallow gold intercepts, including 3 metres at 3.2 grams per tonne gold. The Five Wheels tenure remains under-explored for base metals despite geological similarities to nearby zinc-lead-copper discoveries.

Meanwhile, the company withdrew from the Elephant Project joint venture and mutually terminated a binding agreement in New Zealand after completing due diligence, reflecting a focus on core assets.

Financials and Outlook

Tempest reported $41,000 in exploration expenditure for the quarter, with operating cash outflows of $243,000 partially offset by investing inflows of $218,000, mainly from Capricorn share sales. Cash and equivalents stood at $970,000, providing an estimated 3.4 quarters of funding at current expenditure levels.

Looking ahead, the company plans to review recent data from the Range Project and assess iron potential at the Halo Target near Yalgoo, aiming to leverage its diversified portfolio. The evolution of the GISA partnership and the Federal Government’s Green Iron Fund application will be key developments to monitor as Tempest navigates the intersection of traditional mining and emerging green steel initiatives.