Australian Critical Minerals Shares Surge on Iron Ore Discovery in Pilbara

2 min read | November 27, 2024 04:32 PM AEDT | By Team Kalkine Media

Australian Critical Minerals Shares Surge on Iron Ore Discovery in Pilbara — Image source: Shutterstock

Iron Ore Discovery Sparks Optimism

The recent discovery is based on rockchip samples collected during fieldwork, with results showing impressive grades:

Over 60% iron (Fe) in the highest samples, representing 5% of the total collected.
63% of samples exceeded 55% Fe, while 85% were above 50% Fe.

Additionally, the company reported low phosphorous content, an indicator of high-quality iron ore, though further drilling will be needed to confirm this potential.

The samples span an 8km strike length at Cooletha, with individual Channel Iron Deposits (CIDs) extending up to 3km in length and 300m in width. The scale of these findings has fueled speculation of a significant deposit, driving the share price higher.

A Strategic Pivot to Iron Ore

Australian Critical Minerals originally listed in 2023 with Cooletha marketed as a lithium project. However, the company has now shifted its focus to iron ore, a move that aligns with the growing demand for high-grade iron and lessens exposure to the volatile lithium market.

This strategic pivot has not only revived the company’s fortunes but also bolstered investor confidence, particularly as iron ore prices remain robust.

As of 1 PM Sydney time, iron ore was trading at US$102.65/tonne in Singapore. Despite this, some market analysts, including Australia’s government, predict prices could fall to US$95/tonne by 2025.

What’s Next for ACM?

While the Cooletha discovery has ignited optimism, the company’s success will hinge on further exploration and verification of the deposit’s scale and quality through drilling. If confirmed, the discovery could place ACM in a strong position within the iron ore market.

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