High Grade Assays Confirm Bauxite Discovery
Perth, Nov 25, 2024 AEST (ABN Newswire) - Arrow Minerals Limited (
ASX:AMD) is pleased to report outstanding assays from its maiden drilling program at the Niagara Bauxite Project in Guinea.
Results from Arrow's first drilling at Niagara Bauxite Project outline mineralisation over 2km strike within trucking distance of the railway, Assays from another 160 holes pending
Highlights
- First drilling delivers high grade intercepts confirming bauxite mineralisation
- Results received from 11 holes testing two prospects, assays include;
o BS000028, 7 metres at 47.1% Al2O3 and 2.9% SiO2 from surface
o BS000032, 10 metres at 46.6% Al2O3 and 7.9% SiO2 from surface
o BS000025, 4 metres at 48.8% Al2O3 and 1.8% SiO2 from surface
o BS000023, 3 metres at 46.0% Al2O3 and 1.1% SiO2 from 1 metre
o BS000026, 4 metres at 44.4% Al2O3 and 3.3% SiO2 from surface
- Results from a further ~160 holes are due in late November and December. Drilling is ongoing.
- Grade and thickness intercepted over initial 2,000 metres strike is highly encouraging
- Guinea is the world's largest producer of bauxite, typically attracting a premium for high grade and low silica content.
- Guinea Bauxite standard specification is 45% Al2O3 and 3% SiO2 and is currently trading at US$85 CIF China.
- Following the drilling of 180 holes (on 800 by 800 metres spacings) by Vale in 2007, Arrow has defined 9 bauxite exploration targets. Three are being tested in the current campaign
- Discussions with potential bauxite customers have commenced.
- Arrow has already completed first pass baseline environmental studies and commenced community engagement activities.
- Arrow recently signed an MOU with Baosteel contemplating mine gate sales of iron ore from Simandou North.
The project is located (Figure 1*) within trucking distance of the multi-user Trans-Guinean Railway (~100km).
Arrow has already completed first pass baseline environmental studies, community engagement, and commenced recruitment of people from local communities to support the current operations.
Managing Director, David Flanagan, commenting said:
"These are spectacular results. They demonstrate broad zones of high grade mineralisation from surface, within trucking distance of a multi-user railway at a time of record alumina and bauxite prices.
"Guinea is the world's largest and most important supplier of high-quality bauxite. These results are comfortably in line with the product that has made Guinea the world's number one bauxite producer."
"Guinea bauxite is in high demand contributing approximately 30% of global consumption and at 45% Al2O3 and 3% SiO2 is currently trading at approximately US$85 CIF China."
"Coupled with the broad expanse of prospective host rocks intersected in drilling and our proximity to the multi-user Trans-Guinean railway, the Niagara Bauxite Project presents an excellent opportunity to create value for shareholders, generate jobs in local communities, and consistent with Arrow's goal of establishing itself as a new and independent significant, high quality bauxite supplier."
"Arrow is focused on achieving its goal to be a low-capital, highly profitable mining operation that will serve as a platform for future growth. We are very excited about our drilling results and look forward to receiving more over the coming weeks, with the goal of the estimating of Mineral Resources to form the basis for our planned Scoping Study to follow in the first half of 2025."
Niagara Bauxite Background
Arrow is exploring the Niagara Bauxite Project with the benefit of work done on this project by various mining companies from the 1960's including geology and assays from 180 holes drilled by Vale in 2007. This report includes our first results for 11 drill holes, and the logged geology of our first 148 holes.
A typical residual bauxite deposit is flat with a thickness that varies from 1 to 10 metres with commercial deposits between 4 and 6 metres. A typical commercially viable bauxite mineral system would be laterally extensive covering and area of 5 to 40 square kilometres.
Guinea bauxite ores are normally priced based on direct negotiations with customers relative to a typical 45% Al2O3 product. They are not normally beneficiated and are sold as a direct shipping ore (DSO). These drilling results highlight potential to deliver grade and chemical specifications for DSO bauxite.
Ores typically have a bulk density ranging from 1.9 to 2.1 and is mined to a minimum thickness of approximately 0.5 metres. The Company has visited bauxite mining operations, inspected various mining equipment and met with contractors with experience and currently operating bauxite mines in Guinea. The information verified in this work, and results from this drilling, highlight potential to deliver widths, thicknesses and strike lengths which are similar to existing viable bauxite mining operations.
Arrow has commenced and completed first pass baseline environmental and community impact studies. The Company remains committed to sustaining this work and continuing to engage with all relevant stakeholders through the permitting processes to conclude them in a timely manner. No impediments to exploration or mining have been identified and the Company has productive relationships with key community and government stakeholders.
There are several existing tracks and roads which link the project to the Trans-Guinean Railway (TGR). The TGR is being commissioned and funded by a large consortium in a joint venture including the Guinea government as owners. Members of the consortium include Baosteel, Chinalco, Winning, Rio Tinto, Hongqiao and the Government of Guinea.
The TGR will be operated by a management company that will provide ore haulage service to the developers of the two large mines at Simandou and other third parties (Figure 2*).
Arrow has previously signed a Memorandum of Understanding (MOU) with Baosteel. This MOU, subject to the Company delivering a fully permitted mining project, contemplates concluding a binding mine gate sale agreement for iron ore from our Simandou North Iron Project to Baosteel.
This potentially gives the effect of being able to access spare capacity on the infrastructure and seaborne markets for our iron ore production. The railway is due for commissioning in late 2025.
The Company intends to take full advantage of the multi-user obligations of the TGR to underpin the development of the Niagara Bauxite Project for the benefit of shareholders and the people of Guinea.
With current record high bauxite process, high grade intercepts from surface achieved in several drill holes across substantial distances, all within potential trucking distance of a state-of-the-art railway, also all in an area already drilled by Vale in 2007 as prospective for bauxite the Company remains highly optimistic in relation to reporting further encouraging results in coming weeks and resources in 2025.
*To view the full release, please visit:
https://abnnewswire.net/lnk/2B3108G1
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.
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