Arrow Minerals unveils 185Mt maiden resource at Niagara bauxite project in Guinea

Arrow Minerals (ASX: AMD) has unveiled a large maiden mineral resource for its Niagara bauxite project in Guinea, with scale and grade to underpin a scoping study set for later this year.

The resource sits at 185 million tonnes grading 42.3% aluminium oxide and 2.7% silicon dioxide.

This includes higher-grade subsets of 138Mt at 44% aluminium oxide and 2.8% silicon dioxide, inclusive of 48Mt at 48.2% aluminium oxide and 2.6% silicon dioxide.

Low silica content

Arrow drilled 173 holes at three target areas for a total 2,048 metres, with the zone characterised by a low silica content the company understands is typical of Guinean bauxite deposits.

Arrow tested regional prospectivity with an additional 11 scout holes for 118m and validated historical drilling completed in 2007 by Vale, which comprised 178 auger drill holes for 2,013m.

More than 75% of the resource sits in the higher-confidence indicated category and provides a strong basis for the Niagara scoping study, which is on track for completion in June.

The company expects the study to leverage the higher-grade subset with a view to targeting a higher-quality product and price premium in order to maximise Arrow’s cash margin.

Exploration target

Niagara’s maiden resource sits against an exploration target of between 190Mt and 240Mt grading between 39% and 43% aluminium oxide and up to 4% silicon dioxide.

The target was upgraded this month from an initial conceptual figure of between 170Mt and 340Mt at a grade range of approximately 40% to 46% aluminium oxide and 1% to 4% silicon dioxide.

The company based that figure on mapping, topographic modelling and summary results from historical works, as well as its planned exploration program for 2024 and 2025.

SRK Consulting reviewed the estimate during the maiden resource process and also integrated Vale’s historic drilling data.

Strong pricing

Arrow managing director David Flanagan said the maiden resource grades could bring strong pricing from a bauxite-hungry market.

“In less than 12 months, our team has delivered a substantial resource of high quality and great value in the current bauxite market,” he said.

“Guinea bauxite is in high demand and a standard specification of 45% aluminium oxide and 3% silicon dioxide can attract premium prices of up to US$130 per tonne (CIF China).”