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Knowing about the different types of iron ore is useful for investors interested in the space.

Iron, a key material in steel and other applications, is most often found in hematite and magnetite ores, though goethite, limonite and siderite ores are also common sources of iron ore.

Below the Investing News Network has put together some basic information about hematite and magnetite ores, including what they are and where they’re found. Keep reading to learn more.

What is hematite ore?

Hematite ore, also called direct-shipping ore, has naturally high iron content suitable for steelmaking. Because of its high iron content, hematite ore must undergo only a simple crushing, screening and blending process before being shipped off for steel production. For that reason, hematite ore is important for many mining companies.

Hematite ore is found throughout the world, with major production hotspots being Australia, Brazil, China and India.

In Australia, hematite has been the primary type of iron ore mined since the early 1960s. Nearly all of Australia’s iron ore exports are high-grade hematite ore, and the majority of its reserves are located in the Hamersley mountain range of Western Australia because the range sits on a banded iron formation.

BHP (ASX:BHP,LSE:BHP,NYSE:BHP) is Australia’s leading iron ore producer and has several mining and processing hubs in Western Australia. Rio Tinto (ASX:RIO,LSE:RIO,NYSE:RIO) is also a major iron ore producer in the country, especially in the Pilbara region. One of its key iron producing operations is the Hope Downs iron ore complex, a 50/50 joint venture with Gina Rinehart’s Hancock Prospecting.

Brazil is another of the world’s main sources of hematite ore. The country’s Carajás mine, operated by major miner Vale (NYSE:VALE), is the largest iron ore mine in existence. Vale consistently ranks among the world’s five largest mining companies and is the world’s biggest producer of iron ore pellets. Its primary iron ore assets are in the Iron Quadrangle region of Brazil’s Minas Gerais state.

A great deal of hematite ore is also mined in China. Known reserves include the Tung-Yeh-Chen and Dongye hematite ore deposits.

What is magnetite ore?

The mineral magnetite is a highly magnetic mineral found in solid and crystal forms. Magnetite actually has higher iron content than hematite. However, while hematite ore generally contains large concentrations of hematite, magnetite ore tends to hold low concentrations of the mineral magnetite. As a result, this type of iron ore ore must be concentrated before it can be used to produce steel. Magnetite ore’s magnetic properties are helpful during this process.

Magnetite ore may require more treatment than hematite ore, but end products made from magnetite ore are typically of higher quality than those made from hematite ore. That’s because magnetite ore has fewer impurities than hematite ore; in this way, the elevated cost of processing it can be balanced out.

Magnetite ore is currently mined in Minnesota and Michigan in the US, as well as in taconite deposits in Eastern Canada. A major mining site in Michigan is the Marquette Range, which hosts four types of iron ore deposits, including both magnetite and hematite ore.

In Minnesota, magnetite ore is mined mainly in the Mesabi Range, one of the four ranges that make up the state’s Iron Range. Cleveland-Cliffs (NYSE:CLF) is a major player in the magnetite ore industry and the largest iron ore pellet producer in North America. Its Hibbing Taconite joint venture in Minnesota’s Mesabi Range has an annual capacity of around 7 million metric tons of magnetite ore.

In Canada, many mining companies focus on exploration and development in the iron-rich Labrador Trough, which runs through parts of the provinces of Québec and Newfoundland and Labrador.

This is an updated version of an article first published by the Investing News Network in 2013.

Don’t forget to follow us @INN_Resource for real-time news updates.

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

Astute Metals NL (ASX: ASE) (“ASE”, “Astute” or “the Company”) is pleased to advise that recently completed geological mapping and rock chip sampling at the 100%-owned Red Mountain Lithium Project in Nevada, USA has identified a new zone of lithium bearing clay-rich rocks (shown as the Dark green ‘Unit J’ in Figures 1-3) with lithium grades of up to 2,100ppm lithium.

Key Highlights

• Detailed geological mapping completed by consulting expert Professor Phillip Gans of the University of California Santa Barbara.
• Mapping identifies two priority clay-rich and lithium- hosting rock units at Red Mountain.
• Additional rock-chip sampling within ‘Unit J’ identifies a broad zone of mineralisation grading up to 2,100ppm Li.
• Mapped as the most clay-rich rock type. ‘Unit J’ has only been tested by one drill hole, indicating excellent upside.
• Continuous ‘Unit O’ trending approximately north-south through project will underpin the upcoming Exploration Target.

Unit J is a claystone and siltstone dominated rock type located in the west of the Red Mountain Project area which was identified as part of detailed geological mapping undertaken by consultant geologist Professor Phillip Gans of the University of California Santa Barbara. Professor Gans identified Unit J as the most clay-rich rock unit at the Project and recommended a targeted sampling campaign to establish the presence of lithium mineralisation. Subsequently a total of 38 sub-crop and outcrop samples were taken over an area of 800 x 500m of Unit J (Figure 1), with excellent assay results returned from 13 samples grading 1,000ppm lithium or greater. The sampling revealed outstanding exploration potential in this previously unsampled part of the project.

The mapping also identified two priority rock units for future drill targeting – Unit O and the previously mentioned Unit J. Unit O (shown in pale green in Figures 1-3) is dominated by silt and sandstone with clay-rich horizons, is interpreted to be continuous over a 7.8km extent across the Project, and has been tested by 12 of the 13 holes drilled to date, each of which has intersected strong lithium mineralisation⁷.

The continuous nature of Unit O will underpin a maiden Exploration Target for the Project and inform the drill targeting strategy for the first half of 2025, as the Company advances toward a Maiden Mineral Resource Estimate in the second half.

Astute Chairman, Tony Leibowitz, said:

“With the advice of expert independent consultants, we are continuing to systematically progress the Red Mountain Project. The identification of a new high-grade lithium-bearing unit increases the project’s potential, while the enhanced geological understanding allows the calculation of an Exploration Target, as well as contributes to de-risking of the upcoming drilling campaign, paving the way for a maiden Mineral Resource Estimate in the second half of 2025”

Figure 1. Mapped geology and rock chip lithium geochemistry with red box indicating new lithium zone in Unit J.

Background

Located in central-eastern Nevada (Figure 4), adjacent to the Grand Army of the Republic Highway (Route 6), which links the regional mining towns of Ely and Tonopah. the Red Mountain Project was staked by Astute in August 2023.

The Project area has broad mapped tertiary lacustrine (lake) sedimentary rocks known locally as the Horse Camp Formation². Elsewhere in the state of Nevada, equivalent rocks host large lithium deposits (see Figure 4) such as Lithium Americas’ (NYSE: LAC) 62.1Mt LCE Thacker Pass Project² and American Lithium (TSX.V: LI) 9.79Mt LCE TLC Lithium Project³.

Astute has completed substantial surface sampling campaigns at Red Mountain, which indicate widespread lithium anomalism in soils and confirmed lithium mineralisation in bedrock with some exceptional grades of up to 4,150ppm Li^1,6 (Figures 1 and 3).

A total of 13 RC and diamond drill holes have been drilled at the project for a combined 1,944.72m. Both campaigns were highly successful with strong lithium mineralisation intersected in every hole drilled⁷.

Scoping leachability testwork on mineralised material from Red Mountain indicates high leachability of lithium of up to 98%, varying with temperature, acid strength and leaching duration⁸.

Click here for the full ASX Release

This article includes content from Astute Metals NL, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.