Cyclone Metals Ltd (ASX:CLE) is pursuing the development of processing options for its copper, gold and cobalt assets in the prolific Mount Isa region of northwest Queensland.
The company believes this is an opportune time for investment in the development of new environmentally friendly processing technology for copper and other valuable metals.
Ethleen metallurgical test-work
Cyclone drilled eight holes at its Lady Ethleen project in Queensland to collect samples for the GlyLeach test-work program at the MPS (Mining and Process Solutions) facility in Perth, WA.
Only samples that were analysed to contain copper above a 0.5% cut-off were collected for the tests with the remainder discarded.
The samples have now arrived at the MPS lab facility in Perth and the metallurgical testing program has begun.
The program is anticipated to take between two and three months and will test the leaching efficiency that could be expected from the Lady Ethleen material in several different leaching environments.
GlyLeach technology
GlyLeach was originally developed and patented by Curtin University and is being commercialised globally by MPS.
The GlyLeach process, that involves the use of Glycine as a lixiviant under alkaline conditions, has a number of significant benefits over traditional acid leaching including:
- Its' environmentally-friendly state which is non-toxic to humans and wildlife;
- The ability to selectively leach valuable metals whilst leaving gangue minerals such as iron, manganese, silicates and carbonates in the leach residue;
- The ability to leach ores of different oxidation states (depending on process type, temperature, residence time, particle size, etc); and
- Being recyclable as the glycine is not chemically consumed in the overall process.
Potential for centralised processing hub
The GlyLeach test results are expected to demonstrate the best process to use for material types found in the Mount Isa/Cloncurry district.
A positive project outcome could unlock the possibility for the development of Lady Ethleen and a centralised processing hub in the district.
Within a 10-kilometre radius of Lady Ethleen there are numerous stranded projects that may be suitable candidates to supply feed to a future operation including Lady Jenny (1 kilometre), Wee MacGregor (3 kilometres), Rosebud (10 kilometres) and Inkerman (7.5 kilometres) as well as several more in the wider district.
Trading suspension
On October 16, 2020, Cyclone’s securities were suspended from official quotation on the basis that ASX had determined the company’s operations are not adequate to warrant the continued quotation of securities and compliance with LR 12.1.
The company is currently liaising with ASX regarding compliance with LR 12.1.
Over the many years since Cyclone’s initial listing (more than 15 years) it has consistently communicated with ASX and shareholders its strategy that involves the acquisition and investment in undervalued and/or distressed mineral assets and companies.
Cyclone currently manages six major assets, being investments in listed companies European Lithium Ltd (ASX:EUR), Fe Ltd (ASX:FEL), and Cauldron Energy Ltd (ASX:CXU), the Marampa iron ore asset in Sierra Leone, the Lady Ethleen copper asset in Queensland and its rare earths project in Western Australia.
The market value of these assets is well over $20 million.
Cyclone is continuing to engage with ASX regarding this matter with a view to a resolution as soon as practicable.