Arrow Minerals Ltd (ASX:AMD) High Grade Bauxite Discovery Grows To Over 14Sqkm

(MENAFN- ABN Newswire)

Arrow Minerals Limited (ASX:AMD) is pleased to report more outstanding assays from its first drilling program at the Niagara Bauxite Project in Guinea. The project is located within trucking distance (~100km) of the multi-user Trans-Guinean Railway (refer Figure 1*).
This mineralised area comprises just three of the nine well-established targets; 11 scout holes identify additional zones of high-grade bauxite mineralisation for follow up in 2025, Resource estimation work to start in January.
Highlights
- Latest assays from 39 holes include;
o BS000153, 7 metres at 54.4% Al2O3, 3.4% SiO2 from surface,
o BS000184, 2 metres at 53.1% Al2O3, 1.5% SiO2 from surface,
o BS000152, 2 metres at 51.3% Al2O3, 1.6% SiO2 from surface,
o BS000151, 9 metres at 50.2% Al2O3, 4.0% SiO2 from surface,
o BS000134, 7 metres at 49.7% Al2O3, 3.9% SiO2 from surface,
o BS000150, 7 metres at 49.6% Al2O3, 4.3% SiO2 from surface,
o BS000146, 5 metres at 48.4% Al2O3, 3.6% SiO2 from surface,
o BS000158, 4 metres at 47.8% Al2O3, 2.9% SiO2 from surface,
o BS000177, 4 metres at 47.8% Al2O3, 5.5% SiO2 from surface,
o BS000148, 2 metres at 47.7% Al2O3, 1.7% SiO2 from surface,
o BS000142, 4 metres at 47.4% Al2O3, 3.6% SiO2 from surface,
o BS000182, 4 metres at 47.2% Al2O3, 3.8% SiO2 from surface,
o BS000130, 8 metres at 46.6% Al2O3, 5.2% SiO2 from surface,
o BS000164, 7 metres at 46.5% Al2O3, 7.0% SiO2 from 1 metre,
o BS000176, 7 metres at 45.9% Al2O3, 2.1% SiO2 from surface,
o BS000182, 3 metres at 45.5% Al2O3, 3.7% SiO2 from 7 metres,
o BS000143, 7 metres at 45.1% Al2O3, 3.2% SiO2 from surface,
o BS000181, 4 metres at 45.0% Al2O3, 2.9% SiO2 from surface,
o BS000179, 4 metres at 44.9% Al2O3, 1.5% SiO2 from surface,
o BS000178, 10 metres at 44.4% Al2O3, 2.3% SiO2 from surface.
- Results from 173 of 184 holes now identify the presence of high-grade bauxite over a combined area approximately 14km2, within trucking distance of multi-user rail
- Results from 11 scout holes identified presence of high-grade bauxite along strike to the South-West quadrant of the Niagara permit
- Guinea is the world's largest producer of bauxite, typically attracting a premium for high-grade and low silica content
- Following the drilling of 180 holes (on 800 by 800 metre spacings) by Vale in 2007, Arrow has defined nine priority bauxite exploration target areas; The 14km2 high-grade bauxite area sits within three of these target areas
- Offtake and strategic partnership discussions with global bauxite giants progressing well
- Record high bauxite prices of US$120/t (CIF China) for Guinea bauxite at 45% Al2O3 and 3% SiO2
- The Company's first JORC Mineral Resource estimate scheduled for coming quarter to be followed by Scoping Study in June 2025 quarter
Arrow has already completed first pass baseline environmental studies and community engagement.
It has also started recruiting people from local communities to support the current operations.
Arrow Managing Director, David Flanagan, said: "We are extremely pleased with the outcomes of our first bauxite drilling programme at Niagara."
"This is all within trucking distance of the Simandou 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 continue to compare favourably 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 supply with a premium product specification at 45% Al2O3 and 3% SiO2, attracting premium pricing that is currently at alltime record highs of up to US$120/t CIF China."
"With SRK's site visit scheduled for January, we are on track to estimate our initial Mineral Resource to form the basis for our planned Scoping Study to follow in the first half of 2025."
Niagara Bauxite Project and Bauxite Background
Arrow is exploring the Niagara Bauxite Project with the benefit of work done on this project by various mining companies since the 1960's, including geology and assays from 180 holes drilled by Vale in 2007. This announcement includes new results for 28 drill holes on 300 by 300 metre spacings, as well as 11 scout holes as part of a program of 184 holes targeting high-grade mineralisation intercepted in historical drilling. The Company has previously reported results from 145 drill holes.
With the guidance of Independent Resource Consultants, SRK Consulting (UK) Ltd (SRK), the Company has designed the current program with the intention of estimating sufficient Indicated and Inferred Mineral Resources required to underpin a Scoping Study. Drilling includes twinning previous Vale holes, a program of shallow pitting in areas of mineralisation, as well as all the required quality control sampling, and value in use ore characterisation studies required to comply with modern resource reporting standards.
A typical commercially viable Guinea plateau bauxite deposit is flat with a thickness that varies from 1 to 10 metres, on average, will have 44 to 46% alumina and silica levels typically averaging 3%.
Mineralisation is typically thickest along the plateaux edges coinciding with subtle changes in gradient of 1 to 3 degrees, where meteoric waters, over geological time have enhanced grade and removed deleterious elements.
The application of surface miners to bauxite mining is now common throughout the industry, negating the need for drill and blast, and crushing and screening. The ability to excavate consolidated material (i.e. no drill and blast) and mine a minimum mining thickness of approximately 300mm using high precision GPS machine guidance makes the surface miner well suited to plateau bauxite mining in Guinea. The Company has visited bauxite mining operations, inspected various mining equipment and met with several contractors with current operating experience in bauxite mines in Guinea. The information collected during these visits, combined with the results from the current drilling campaign, allows the Company to start to define important operating parameters that will ultimately be fed into a planned Scoping Study, subject to the estimation of sufficient Mineral Resources.
Arrow has also commenced and completed preliminary baseline social and environmental impact studies. The Company remains committed to progressing 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 established productive relationships with key community and government stakeholders.
There are several existing rural and national roads which can be leveraged to link the project to the Trans-Guinean Railway (TGR) which is currently under construction (Figure 1* and Figure 6*). The TGR is being commissioned and funded by a large consortium in a joint venture which includes the Government of Guinea as a 15% part owner. 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 services to the developers of the two large mines at Simandou and other third parties (Figure 1*). 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 Arrow's Simandou North Iron Project to Baosteel. 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.
The TGR is a critical piece of infrastructure, and without it the project would likely remain undeveloped for many years. It's also important to recognise that the historical absence of infrastructure has contributed to the preservation of this high-quality project.
Against a backdrop of current record high bauxite prices, the drilling results at Niagara have so far delivered high-grade intercepts from surface in several drill holes across substantial lateral extent.
Given the location is within trucking distance of the TGR, the Company is very encouraged by the drilling results received to date.
Geological Results
Analysis from 39 drill holes (the subject of this announcement) for a total of 449 metres of drilling have been received from ALS Global. Results include:
- 28 drill holes for a total of 331 metres of drilling for the newly reported Boussoura Far-South target, and includes holes BS000129 to BS000134, BS000139 to BS000159, and BS000164
- 11 drill holes for a total of 118 metres of extension drilling for the Boussoura South-West targets, and include holes BS000174 to BS000184
Results are reported in Table 1 using a 1m minimum intercept, nil dilution for intervals less than 4m, 1m dilution for intervals 4m or greater, and cut-off grades of 40% Al2O3 and 37% Al2O3 respectively.
Drill holes that return assays below cut-off grade are omitted from reporting but may subsequently be reported subject to the results of metallurgical testwork. The locations of all drill intercepts are shown in plan form in Figure 2* and Figure 3*. Drill Section 1,202,500mN for Boussoura Far-South is given in Figure 5* and shows lateral extent and continuity of the bauxite, and underlying laterite lithologies.
Samples for XRF analysis are processed and reported by ALS Global in batches of approximately 200 samples. The results reported in this announcement represent the final 564 analyses in the Company's third and final consignment for 2024 of 1,218 samples.
Results reported herein have identified that bauxites with grades in the range of 40 - 54% total alumina extend across to the Far-South area of the Boussoura plateau tested with drilling. Elevated thicknesses of bauxite are noted at Boussoura Far-South most notably in drillholes BS000151 (9m grading 50.2% Al2O3), BS000153 (7m grading 54.4% Al2O3) and BS000134 (7m grading 49.7% Al2O3).
Results for the 11 scout holes completed over a strike extent of approximately 5km of the SouthWestern area of the Boussoura plateau confirmed the presence of bauxites in the grade range of 39 - 53% total alumina. Elevated thicknesses of bauxite are noted in drillholes BS000178 (10m grading 44.4% Al2O3), BS000176 (7m grading 45.9% Al2O3), and BS000183 (6m grading 42.3). These drillholes confirm historic observations that bauxite occurrences persist along the full extent of the Boussoura plateau system, and present additional drill targets for ongoing exploration.
Exploration
Following the drilling of 180 holes (on 800 by 800 metres spacings) by Vale in 2007, Arrow has defined nine bauxite resource targets, three of which have been tested in the current campaign.
Arrow has completed the programme comprising 184 drill holes for a total of 2,166m of drilling. Of this, 2,163m of drilling have been logged and sampled, however 3m were not sampled due to void or wet ground conditions encountered during drilling (BS000083, 2m, and BS000015, 1m).
All samples for the 2024 campaign have been submitted for analysis on a priority basis to ALS Global's analytical laboratory in Loughrea, Ireland. The Company would like to acknowledge the rapid turnaround and high-quality client service received from ALS Global's Loughrea laboratory.
A total of 2,721 samples have been processed, including 2,163 drill samples from 2,166m for 184 drill holes, and a further 558 Quality Assurance & Quality Control (QAQC) samples comprised of field and pulp duplicates, blanks, and Certified Reference Materials.
The final 564 chemical analyses from the third and final batch of 1,218 samples for 39 drill holes, are reported herein.
Following receipt of the final batch of assays from the 2024 program, the Company has commenced the selection of analytical pulps based on lithology and grade for submission along with pit samples to independent analytical laboratory Bureau Veritas in Perth, Australia for specialist analyses, including the determination of Available Alumina (AA) and Reactive Silica (RxS) using low and high temperature digestion using a laboratory scale version the Bayer process, along with Total Carbon, Total Organic Carbon, and selected mineralogy by X-Ray Diffraction. The Company notes that ALS Global have ceased offering high temperature Bayer digestion for the determination of AA and RxS as an analytical service, therefore has sought to consolidate this specialised analysis at a single laboratory. Bureau Veritas have been selected for these analyses on the basis of their expertise in bauxite analysis, with existing production laboratories at bauxite mines within Guinea. Additional physical tests to inform the Mineral Resource estimation and subsequent Scoping Study are also being conducted on bulk samples from recently excavated pits at Geoprospects' laboratory at Sangaredi in Guinea.
The Company's Independent Consultants SRK are scheduled to conduct the prerequisite site visit to Niagara in January 2025 in preparation for the commencement of the estimation of first mineral Resources. The Company expects to report the outcomes of the estimation during the first quarter 2025. The Company will subsequently proceed with the estimation of a Scoping Study for Niagara subject to satisfactory estimation of sufficient Mineral Resources.
*To view tables and figures, please visit:
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