Sunday, March 2, 2025

The Clear Hills Iron Deposits: A Massive Polymetallic Resource in Peace Country, Alberta

The Clear Hills iron deposits represent one of western Canada's largest known iron resources, situated in northwestern Alberta's Peace Country. These extensive polymetallic deposits have been the subject of exploration and development efforts for nearly a century, facing significant technical challenges while holding immense potential for future mineral production. Recent technological breakthroughs have reinvigorated interest in this substantial resource, positioning it as a potentially significant contributor to North America's critical mineral supply chain.

The Clear Hills iron deposits are located approximately 200 kilometers north of Grande Prairie and 300 miles northwest of Edmonton in northwestern Alberta's Peace Country12. Situated primarily along the eastern and southern flanks of the Clear Hills, these deposits extend across a vast area approximately 50 miles northwest of Fairview, with scattered showings also found north and northwest of the Notikewin River4. The region features well-developed infrastructure, including highways, major rail connections, airports, educational institutions, and local energy production facilities, serving a surrounding population of more than 170,000 residents1.

The sheer magnitude of these deposits is impressive, with various resource estimates highlighting their significance. According to the Alberta Geological Survey, resources have been estimated at 1,124 million tons, of which 227 million tons are considered "proved" and 897 million tons are classed as "probable" or "possible"2. More recent assessments by PRISM Diversified Ltd. (formerly Ironstone Resources) have defined a National Instrument 43-101 compliant resource of 557 million tonnes of mineralized material, containing 182 million tonnes of iron and 2.45 billion pounds of vanadium pentoxide17. These figures solidify the Clear Hills deposits as the largest potential source of iron ore in the four western provinces of Canada24.

The Clear Hills deposits consist primarily of flat-lying oolitic sandstone beds ranging from 5 to 30 feet in thickness2. The mineralization occurs near the surface as a polymetallic iron-vanadium deposit with a distinctive geological structure1. The iron content typically grades between 32 and 35 percent Fe, primarily in the form of goethite (Fe₂O₃·H₂O)2. This unique "oolitic" ore structure, characterized by its complex microscopic "goethite" mineralized formation, has posed significant challenges for conventional extraction methods611.

The composition of the deposits presents notable beneficiation and smelting challenges. The major impurity is silica (SiO₂), present both as discrete quartz grains and as an intergranular cement (opal)2. Additionally, the phosphorus content is relatively high, though aluminum and sulfur contents remain comparatively low2. These characteristics have necessitated specialized approaches to ore upgrading prior to any potential smelting operations.

The Clear Hills iron deposits have a long history of exploration and development attempts dating back to at least 1924, when they were identified by Chalmers, Redfern, and Lundstrom4. Despite their discovery nearly a century ago, economic exploitation has remained elusive due to the technical challenges associated with processing the unique ore structure.

Throughout the decades, various companies and government agencies have conducted research and exploration activities. Peace River Mining and Smelting obtained leases from the government in earlier years but ultimately moved eastward to establish an iron-making plant in Windsor, Ontario, before facing business failure4. The Alberta Research Council continued intermittent research, though large-scale development remained largely theoretical for many years4.

More recent development efforts began in 2007 under Ironstone Resources, which later renamed itself PRISM Diversified Ltd. in early 2018 to mark its entry into the commercialization stage of development1. PRISM, whose name stands for "Peace Region Innovative & Sustainable Manufacturing," has conducted three diamond core drilling programs and excavated a bulk sample pit, extracting 11,000 tonnes of mineralized material for metallurgical evaluations and process development1. The company has raised over $30 million from more than 300 shareholders, including three UK-based institutional investors, demonstrating significant private sector interest in the resource1.

The primary obstacle to developing the Clear Hills deposits has been the difficulty in economically upgrading the ore to make it suitable for steel production4. The unique oolitic structure of the ore, with its complex microscopic goethite mineralization, has proven resistant to conventional beneficiation techniques611.

Over the decades, numerous attempts have been made to upgrade or extract the iron content using various methods, including magnetic separation, flotation, direct reduction, and acid leaching techniques2. Large-scale direct reduction tests conducted by the R-N Corporation in Birmingham, Alabama in 1960 successfully produced metallic briquettes grading 90 percent Fe suitable for electric furnace conversion, though economic feasibility remained uncertain2. Other approaches involved mild reductive roasting followed by crushing and grinding to yield a magnetic concentrate with iron content ranging between 50 and 60 percent2.

PRISM's development efforts were effectively stalled from 2016 until recently due to the inability to successfully liberate metals from the ore's unique structure611. Previous unsuccessful attempts had focused on physical grinding with roasting and grain enlargement—all of which proved incapable of effectively separating the iron and vanadium from the complex mineralized structure611.

A significant breakthrough occurred in late 2024 when PRISM announced successful test results in partnership with TCM-Research, employing an innovative reductive chlorination process611. Initial tests demonstrated remarkable success: 99.1% iron extraction (at 96% purity) and 96.6% vanadium extraction611. This technological advancement represents a potential turning point for the development of the Clear Hills deposits, providing a viable pathway toward commercial production after decades of challenges.

The Clear Hills polymetallic deposit presents diverse economic opportunities beyond conventional iron ore production. PRISM Diversified has outlined several strategic market applications for the high-purity iron that could be produced using the reductive chlorination process7.

One primary application is in blue/green steel production, where the high-purity iron could serve as a substitute for traditional Direct Reduced Iron (DRI)7. The process developed by TCM-Research offers potential environmental advantages through the adoption of hydrogen in the reduction process, providing "a tangible pathway to low emission steel manufacturing"611. This aligns with growing global demand for lower-carbon steel production methods.

Beyond steel manufacturing, the high-purity iron could be utilized in specialty applications such as iron oxide powders for paints and ultra-high purity iron powders (99.95%) for additive manufacturing and 3D printing7. These specialized markets typically command premium prices compared to conventional steel feedstock.

The vanadium component of the deposit represents another significant economic opportunity. The scale of iron production envisioned would result in approximately 15,000 tons of vanadium being produced annually—representing approximately 15% of current global supply611. This vanadium could address growing demand in the long-duration energy storage market, particularly for flow batteries, providing a safe, predictable, and domestic supply of this critical mineral611.

The Clear Hills Project benefits from its location in Alberta's Peace Country, a region with robust infrastructure and a strong industrial foundation. The site is situated close to all-weather roads and within 35-45 miles of railway facilities at Hines Creek2. This existing transportation network provides logistical advantages for potential future operations.

The region also features nearby natural gas and coal resources that could potentially serve as carbon reductants for direct reduced iron processing3. The presence of these complementary resources enhances the economic viability of potential iron and steel production facilities.

Additionally, the overburden material itself presents economic opportunities. It consists of bentonite-rich expandable clays that could be utilized in the production of lightweight expandable clay aggregates (LECA) or manufactured into various environmentally-friendly building and road construction products1. This creates potential for integrated operations that maximize value extraction from all components of the deposit.

After decades of challenges, the Clear Hills iron deposits appear to be approaching a potential inflection point toward commercial development. PRISM Diversified has indicated plans to enter the commercialization stage with preliminary economic assessments and feasibility studies for high-purity iron powders and electric metals (vanadium and cobalt), with production operations anticipated for 20269.

The breakthrough in extraction technology represented by the reductive chlorination process offers a viable pathway forward after years of technical obstacles. PRISM's CEO expressed enthusiasm about the combination of Alberta-produced hydrogen and PRISM's iron metal powders generating "considerable economic benefit to the region and province"611.

As global demand for critical minerals continues to grow, particularly those supporting renewable energy technologies and advanced manufacturing, the Clear Hills deposits could emerge as a strategically important resource. The potential to produce both high-purity iron and substantial quantities of vanadium positions this long-known but historically challenging resource as increasingly relevant in today's evolving materials economy.

Conclusion

The Clear Hills iron deposits of Peace Country, Alberta, represent a massive polymetallic resource that has challenged developers for nearly a century. With estimated resources exceeding a billion tons and containing significant quantities of both iron and vanadium, these deposits constitute one of western Canada's most substantial mineral assets. Though historical development efforts were hampered by the unique mineralogical characteristics of the ore, recent technological breakthroughs offer renewed promise for commercial exploitation.

The successful application of innovative extraction techniques, combined with growing market demand for high-purity iron products and critical minerals like vanadium, suggests that these long-dormant deposits may finally realize their economic potential. As development progresses toward anticipated production in 2026, the Clear Hills Project stands poised to transform from a challenging geological curiosity into a productive asset contributing to both regional economic development and the global supply of essential minerals.

Citations:

  1. https://www.prismdiversified.com/history
  2. https://ags.aer.ca/publications/all-publications/inf-075
  3. https://minedocs.com/17/ClearHills_Lithium_Project_Presentation_2016.pdf
  4. https://archive.org/download/clearhillsironde00peac/clearhillsironde00peac.pdf
  5. https://www.globenewswire.com/news-release/2004/06/01/311187/3091/en/GoldSpring-Update-Alberta-Mineral-Permits-Received-for-800-Sq-Mi-Clear-Hills-Iron-Deposit-Coal-Oil-and-Gas-Are-Next-Targets.html
  6. https://www.prismdiversified.com/news
  7. https://www.prismdiversified.com/iron
  8. https://archive.org/details/clearhillsironde00peac
  9. https://www.prismdiversified.com
  10. https://natural-resources.canada.ca/science-data/science-research/data-analysis/natural-resources-major-projects-planned-under-construction-2024-2034
  11. https://www.prismdiversified.com/news/2024/12/2/prism-and-tcm-achieve-successful-liberation-of-iron-and-vanadium
  12. https://investingnews.com/saga-metals-announces-assay-results-from-north-wind-iron-ore-project/
  13. https://openlibrary.org/works/OL39215378M
  14. https://aer-corpwebagscc-prd-app-01.azurewebsites.net/publication/ofr-1973-34
  15. https://ags.aer.ca/document/OFR/OFR_1973_34.pdf
  16. https://content.energy.alberta.ca/xdata/MARS/MAR_19970010.pdf
  17. https://miningdataonline.com/property/1698/Clear-Hills-Project.aspx
  18. https://www.mindat.org/loc-302633.html
  19. https://mininglifeonline.net/company/ironstone-resources-ltd/8542
  20. https://openlibrary.org/books/OL39215378M/The_Clear_Hills_iron_deposits
  21. https://www.mindat.org/locentry-1237446.html
  22. https://content.energy.alberta.ca/xdata/MARS/MAR_20140005.pdf
  23. https://pubs.geoscienceworld.org/canmin/pdf-lookup/15/1/3
  24. https://books.google.com/books/about/The_Clear_Hills_Iron_Deposits.html?id=ZanI0AEACAAJ
  25. https://ags.aer.ca/publications/all-publications/inf-155
  26. https://albertawilderness.ca/issues/wildlands/energy/coal/
  27. https://ags.aer.ca/publications/all-publications/ofr-1973-34
  28. https://foresightcac.com/team/andrew-watson
  29. https://www.researchgate.net/figure/Location-of-oil-sands-plants-refineries-upgrading-facilities-steam-assisted-gravity_fig1_367635955
  30. https://www.newsfilecorp.com/release/201367/Lincoln-Ventures-Ltd.-Announces-Updates-on-Acquisition-of-Clear-Hills-Lithium-Project-and-Preparation-of-43101-Report
  31. https://digbee.com/organisation/prism-diversified-ltd/overview
  32. https://open.alberta.ca/opendata?tags=PADDLE-PRAIRIE
  33. https://ca.linkedin.com/in/carl-berdahl-9b1b273a

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