Arrow Expands Bulks Presence with Major Bauxite Transaction
Perth, Aug 1, 2024 AEST (ABN Newswire) - Arrow Minerals Limited (
ASX:AMD) is pleased to announce it has entered into a Share Purchase Option Agreement (Agreement) to acquire the Niagara Bauxite Project, located in Guinea (Niagara Bauxite Project or the Project). See Appendix 1* for a summary of the Agreement.
Highlights
- Arrow expands its bulk commodity presence with agreement to acquire Niagara Bauxite Project located in Guinea, the world's largest exporter of high-grade low-impurity bauxite
- Niagara Bauxite Project is an advanced asset with a significant exploration history
- Simandou railway, due for commissioning in 2025, is located only 100km from the project
- Niagara Bauxite Project, combined with Arrow's Simandou North Iron Project, are projects with significant scale potential and operating synergies
- Arrow's future work program will focus resource drilling, economic studies, permitting and development pathways
- The agreement is structured as an option agreement, with an option fee of $400,000 payable in cash and shares, with $2,000,000 in cash or shares payable upon option exercise
- Provides Arrow and its shareholders with the opportunity to rapidly progress a project at a time when bauxite prices and analysts have noted a strong outlook
Arrow Managing Director David Flanagan said: "We are delighted to significantly expand our bulk commodity exposure, leveraging our rapidly growing presence, strong relationships and reputation in country. Past exploration on this project has identified 6 high quality bauxite targets for resource drilling. This agreement gives the Company up to 12 months to test and evaluate the project before completing the acquisition. On visiting the site and reviewing the prospects, and in light of access to the multi-user railway due to be commissioned from end of 2025, coupled with the strong prices and outlook for bauxite, it presents a highly compelling and potential value transformational opportunity for the Company."
"As indicated by historical technical studies on the Niagara Bauxite Project, there is substantial potential based on historic foreign estimates indicating excellent potential for direct shipping grade mineralisation."
"Arrow, with the assistance of its technical advisors have reviewed a compilation of historic work completed on the Niagara Bauxite Project tenure as part of the significant bauxite prospectivity works led by Dr V.I. Mamedov, and summarised in the 2010 two volume publication "Geologie de la Republique de Guinee". As the source drilling and chemical analysis information used in preparation of these foreign estimates is not currently available to the Company, the Company is unable to verify and validate these foreign estimates at this time."
"The Arrow team is dedicated to growing the Company, and has a strong track record of delivering logistics supply chains, developing new mines, exporting bulk commodities and engaging productively with the community. This asset is strategically located in our back yard and compliments what we are doing at the Simandou North Iron Project," Mr Flanagan added.
Background on Niagara Bauxite Project
The Niagara Bauxite Project is located approximately 100km north of the Simandou multi-user railway, which extends roughly 285 km to the Morebaya port (Figure 1*). The project falls within the three prefectures of Mamou, Dalaba and Tougue, and includes bauxite plateaux from the studied and documented Dabola and Tougue bauxite regions shown in Figure 1*.
Foreign Estimates on the Niagara Bauxite Project
A compilation of historic work was completed on the Niagara Bauxite Project tenure as part of the significant bauxite prospectivity works led by Dr V.I. Mamedov, and summarised in the 2010 two volume publication "Geologie de la Republique de Guinee".
The Company's independent consultants have advised that these foreign estimates are assumed to be aligned with the Russian GKZ system, however no details have been found to date to verify the basis for these estimates.
As the source drilling and chemical analysis information used in preparation of these foreign estimates is not currently available to the Company, the Company is unable to verify and validate these foreign estimates at this time.
The Company's independent consultants have also advised that these estimates should be treated as historic foreign estimates, and with caution, until a verification program has been conducted which supports (or not) the summary tonnages and grades reported therein. These foreign estimates should not be considered equivalent to an estimate that follow contemporary best practices and are reported in line with a modern international reporting code that is a member of the Committee for Mineral Reserves International Reporting Standards ("CRIRSCO") or the JORC Code.
Next Steps
As at the date of this release the Company plans to:
- Endeavor to locate and acquire the source information and documentation that support the historic foreign estimates given in Mamedov et al (2010).
- Evaluate the methods and analytical techniques used to inform the historic foreign estimates.
- Transcribe and digitize all historic information for use in validating the historic foreign estimates.
- Validate historic drill and assay data by completing an expedited drill program during 2024.
- Conduct further exploration drilling as required to inform the estimation of Mineral Resources in accordance with the JORC Code.
- Conduct economic studies and permitting and development pathways.
*To view tables and figures, please visit:
https://abnnewswire.net/lnk/T28WX0H9
About Arrow Minerals Ltd
Arrow Minerals Ltd (ASX:AMD) is an exploration and development company focused on delivering long-term shareholder value through the discovery of economic mineral deposits in West Africa. The Company has implemented a systematic science-based exploration philosophy whilst remaining commercially nimble to ensure we capture and retain value.
| ||
|
