Cyclone Metals (ASX:CLE) said it progressed the development of its Iron Bear iron ore project in Canada, advancing the engineering workstream and completing the fourth phase of metallurgical test work, according to a Wednesday Australian bourse filing.

It secured the key commercial engagements with subcontractors for drilling, power, rail, environmental, social, and community studies.

The fourth phase of metallurgical test work was completed, with 17.7 tons of sediment processed in the project's pilot plant.

It produced 2.3 tons of direct reduction concentrate, grading 71% of iron and 1.2% of silicon dioxide, with very low deleterious elements. It also produced 3.5 tons of blast furnace concentrate, grading 69.1% of iron and 3.5% of silicon dioxide.

260 kilograms of direct reduction pellets were produced, grading 68.4% of iron and 1.5% of silicon dioxide with excellent metallisation and physical properties.

It also completed the flotation optimization test work, which confirmed a substantial increase in flotation recoveries from the previous 80% mass yield.

Cyclone is preparing a large drilling program for the summer, which should substantially expand the indicated mineral resource estimate and enable the design of a mining pit.

Iron Bear has also started test work for the design of dry tailings for the mining operation.

Its shares rose 3% in recent trading on Wednesday.