Mont Sorcier Project Making Good Progress

Chibougamau Independent Mines Inc. (TSX-V: CBG, Frankfurt: CLL1, OTC: CMAUF) has announced substantial progress on the Mont Sorcier high-purity iron project, located in Chibougamau, Québec. As of October 20, 2025, the company reported that Cerrado Gold, which is focused on the project, completed an infill drilling program totaling 17,000 meters. This initiative aims to upgrade the existing resource estimates to Proven and Probable categories, which is critical for preparing a feasibility study expected by Q2 2026.

The Mont Sorcier project is particularly notable for its high-quality iron concentrates, initially assessed in a 2022 Preliminary Economic Assessment (PEA) that projected a net present value (NPV) of $1.6 billion based on 65% iron concentrates. Recent testing has revealed the capability to produce a Direct Reduced Iron (DRI) concentrate of over 67% iron purity, aligning with the industry's growing demand, especially with the shift towards Green Steel production. The project not only promises long-term, low-operating-cost production but also supports the decarbonization efforts in the steel sector, moving away from traditional blast furnaces to electric arc furnaces.

Chibougamau retains a 2% Gross Metal royalty on the Mont Sorcier deposit, underscoring its financial interest in the endeavor's success. CEO Jack Stoch, a Qualified Person under NI 43-101 guidelines, emphasizes the project's potential to meet increasing market needs while contributing to sustainable development goals. Overall, the Mont Sorcier project's advancements signal a noteworthy trajectory for both Chibougamau and the broader mining and steel production industries.

The Mont Sorcier project, spearheaded by Chibougamau Independent Mines Inc., appears to be on a positive trajectory, making significant advancements that could prove beneficial for investors. The company has reported substantial progress, having successfully drilled 17,000 meters as part of their infill drilling program aimed at updating resource estimates to the Proven and Probable categories. This move is essential as it sets the stage for the anticipated feasibility study targeted for completion in Q2 2026.

Investors should closely monitor the outcomes of the ongoing developments at Mont Sorcier, given the project's promising attributes. Initially highlighted in the 2022 Preliminary Economic Assessment (PEA), the project holds a commendable Net Present Value (NPV) of $1.6 billion at an 8% discount rate, based on iron concentrates with a 65% iron grade. However, new test results indicating a potential to achieve over 67% iron purity positions Mont Sorcier favorably in a market increasingly driven by the demand for high-purity Direct Reduced Iron (DRI) products, especially in light of the green steel transition.

Moreover, the project’s location on traditional Cree territory and its commitment to sustainability could provide additional social license to operate and improve investor sentiment. With the global steel industry pushing towards decarbonization, Chibougamau's high-grade, low-capital intensity profile could align well with the evolving market dynamics.

However, investors should remain aware of associated risks, including market volatility and execution challenges. It's advisable to leverage this opportunity by taking a position in Chibougamau, especially as progress updates continue to emerge and the feasibility study is released, potentially enhancing the company's valuation and attractiveness to strategic partners in the steel industry.