Arrow Minerals is fast-tracking a Scoping Study for a Direct Shipping Ore operation at its Niagara Bauxite Project in Guinea, leveraging strong drilling results and strategic infrastructure access to capitalise on record bauxite prices.
- Rapid advancement of Scoping Study targeting June 2025 completion
- Mineral Resource estimate expected by March 2025 following extensive drilling
- High-grade bauxite mineralisation confirmed over 14 square kilometres
- Proximity to Trans-Guinean Railway supports cost-efficient logistics
- Ongoing offtake and strategic partnership discussions amid record bauxite prices
Context and Project Overview
Arrow Minerals Limited (ASX: AMD) has announced an accelerated timeline for its Scoping Study on a potential Direct Shipping Ore (DSO) operation at the Niagara Bauxite Project in Guinea. This move follows a successful 2024 drilling campaign that delineated high-grade bauxite mineralisation across a substantial 14 square kilometre area. The company aims to complete the Mineral Resource estimate by the end of March 2025, with the Scoping Study targeted for completion by June 2025.
Located within trucking distance of the under-construction Trans-Guinean Railway (TGR), Niagara is strategically positioned to leverage multi-user rail and port infrastructure, a critical factor in the project's development potential. Guinea's bauxite is globally recognised for its premium quality, characterised by high alumina and low silica content, which currently commands record prices exceeding US$130 per tonne (CIF China).
Drilling Success and Resource Potential
Arrow's 2024 drilling program comprised 184 holes totalling over 2,100 metres, confirming thick and continuous bauxite mineralisation with average intercept thicknesses ranging from approximately 2 to 7.8 metres across multiple target areas. Notably, the Boussoura North-West target delivered the thickest average intercepts, while Boussoura Central and North targets yielded high-grade alumina percentages, with some intercepts exceeding 54% Al2O3.
This extensive dataset underpins the company's confidence in Niagara as a Tier 1 mineral deposit, justifying the concurrent advancement of resource estimation and Scoping Study workstreams. The mineralisation's near-surface nature and thickness are conducive to surface mining methods, such as the use of GPS-guided surface miners, which can reduce operational complexity and costs.
Infrastructure and Market Dynamics
The project's proximity to the TGR, a multi-user rail line funded by a consortium including the Government of Guinea and major industry players, is a significant logistical advantage. The Guinean Mining Code's provisions for third-party access to infrastructure further enhance Niagara's development prospects by enabling cost-effective transport solutions.
Market fundamentals are robust, with global bauxite consumption having more than doubled since 2007, driven primarily by China's increasing reliance on imported bauxite due to declining domestic reserves and stricter environmental regulations. Guinea remains the largest supplier to China, and the recent surge in bauxite prices reflects tightening supply and infrastructure constraints worldwide.
Strategic Partnerships and Permitting Progress
Arrow is actively engaging with potential offtake partners and strategic investors, with preliminary discussions indicating strong interest aligned with the project's premium product specifications. Environmental and social baseline studies are underway, alongside community engagement initiatives, positioning the company to progress permitting efficiently. The anticipated exploitation permit process in Guinea typically spans under a year in less sensitive areas, which aligns with Arrow's expedited development timeline.
Managing Director David Flanagan emphasised the company's strategy to deliver a starter-scale project with attractive risk-reward characteristics, enabling rapid production commencement and future expansion potential. This approach is designed to capitalise on the current favourable market environment while maintaining operational flexibility.
Looking Ahead
With SRK Consulting advancing the Mineral Resource estimate and early Scoping Study work already underway, Arrow is well-positioned to demonstrate the viability of the Niagara project as a conventional DSO operation. The combination of high-grade mineralisation, strategic infrastructure access, and strong market demand sets a promising stage for the project's next development phases.
Bottom Line?
Arrow’s accelerated study and strategic positioning could unlock timely value from Guinea’s premium bauxite market.
Questions in the middle?
- Will the Mineral Resource estimate confirm the Exploration Target’s upper range and support project scale?
- How will Arrow secure long-term offtake agreements amid evolving global bauxite supply dynamics?
- What are the potential risks or delays associated with permitting and third-party infrastructure access?