Simandou North Testwork Yields 66.8% Fe Hematite with Under 0.5% Alumina

Exceptional Metallurgical Results Highlight Project Quality

Arrow Minerals Limited (ASX: AMD) has announced outstanding metallurgical testwork outcomes from its Simandou North Iron Project in Guinea, confirming the production of a premium hematite fines product. The testwork demonstrated iron grades exceeding 66% Fe with remarkably low alumina content below 0.5%, a combination that is increasingly scarce in the global iron ore market.

These results build on earlier findings and reinforce the project's potential to deliver a high-quality product that could command a price premium, estimated at US$10 to $15 per tonne above the standard 62% Fe Pilbara fines benchmark. The low alumina content is particularly attractive to steelmakers, who face tightening supplies of such feedstock.

Preferred Processing Flowsheet and Scoping Study Progress

The company has identified a preferred processing route involving a simple gravity separation flowsheet using spiral concentrators on a -1mm crushed feed. This approach achieved the best balance of mass recovery (44%) and iron grade (66.8% Fe) in simulated laboratory conditions. Arrow is advancing this flowsheet into a scoping study phase to refine capital and operating cost estimates, with further bulk testing planned to validate scale-up performance.

Additional testwork included crushing hardness assessments, which confirmed the ore's relatively soft nature, allowing for conventional crushing equipment selection. Magnetic separation was also evaluated but is expected to play a secondary role in the processing circuit.

Strategic Partnership with Baosteel Enhances Market Access

Arrow's recent Memorandum of Understanding with Baosteel Resources Holding (Shanghai) Co. Ltd, a subsidiary of the world's largest steel producer Baowu Group, provides a framework for potential mine gate sales. This partnership leverages Baosteel's significant infrastructure investments and market reach, including access to the Trans-Guinean Railway and port facilities, which are on track for commissioning in late 2025.

Baosteel's involvement not only validates the project's quality but also offers Arrow a strategic pathway to commercialisation, reducing market risk and enhancing the project's attractiveness to investors and stakeholders.

Exploration Target and Future Development Outlook

Arrow previously announced a substantial Exploration Target ranging from 281 million to 716 million tonnes of Simandou Formation Oxide BIF at 33-46% Fe. While this target remains conceptual pending further drilling and resource definition, the metallurgical results provide confidence in the product quality that could be derived from this resource.

The company’s development strategy focuses on establishing a 'starter mine' with a streamlined pathway to production, which can be expanded as additional resources are delineated and infrastructure matures. The proximity to the Trans-Guinean Railway and port infrastructure is a key logistical advantage supporting this approach.

Next Steps and Market Implications

Arrow is set to progress its scoping study with further metallurgical testwork, including bulk spiral runs to optimise gangue removal and iron recovery. These efforts aim to de-risk the processing flowsheet and provide robust data for capital and operating cost modelling.

Given the tightening supply of low-alumina iron ore globally, Arrow’s Simandou North project is well positioned to capture a premium market segment. The evolving partnership with Baosteel and advancing infrastructure developments could accelerate the project’s path to production, making it a compelling story to watch in the iron ore sector.