Arrow Minerals Unveils Major Bauxite Discovery and $7M Capital Boost

Niagara Bauxite Project: A Major Discovery

Arrow Minerals Limited (ASX: AMD) has delivered a highly encouraging update in its December 2024 Quarterly Activities Report, spotlighting the maiden drill program at the Niagara Bauxite Project in Guinea. Completed in November 2024, the drilling campaign identified approximately 14 square kilometres of high-grade bauxite mineralisation, with average intercept thicknesses of 4 to 5 metres at cut-offs above 37% to 40% Al2O3. These results position Niagara as a potentially significant new source of bauxite, with grades ranging from 40% to 54% total alumina.

Guided by independent consultants SRK, Arrow is progressing a maiden Mineral Resource estimate scheduled for completion by March 2025. Concurrently, a scoping study aimed at evaluating a conventional Direct Shipping Ore (DSO) operation is underway, with environmental and social baseline studies and haulage logistics investigations already in progress. The scoping study is expected to be released in the June 2025 quarter, reflecting Arrow’s strategic focus on a starter project that can rapidly generate cash flow and scale over time.

Simandou North Iron Project: Premium Hematite Fines

At the Simandou North Iron Project, Arrow has advanced metallurgical testwork with promising outcomes. Stage 2 bench-scale tests on oxide banded iron formation (BIF) samples demonstrated the production of high-grade hematite fines exceeding 66% iron content, with exceptionally low alumina levels below 0.5%. The preferred processing flowsheet, involving simple gravity separation, achieved a 44% mass yield with 66.8% Fe, 2.9% SiO2, and 0.49% Al2O3, indicating a product quality that could command a price premium in the market.

These metallurgical successes complement Arrow’s strategic partnership with Baosteel Resources, formalised through a non-binding Memorandum of Understanding to negotiate mine gate iron ore sales contracts. This alliance leverages Baosteel’s access to the Simandou port and rail infrastructure, enhancing Arrow’s pathway to market and project development.

Infrastructure and Strategic Positioning

Both the Niagara and Simandou North projects benefit from their proximity to the Trans-Guinean Railway (TGR), currently under construction by Winning Consortium Simandou. This government-mandated multi-user rail and port infrastructure is a critical enabler for Arrow’s bulk commodity projects, offering cost-effective logistics solutions and access to global markets. The TGR’s development, backed by an estimated US$21 billion investment, underscores the strategic importance of Arrow’s project locations.

Corporate and Financial Update

Arrow’s financial position remains solid with $2.2 million cash at the end of December 2024. Subsequent to the quarter, the company successfully raised approximately $7 million through a placement to institutional and sophisticated investors. These funds are earmarked to accelerate drilling, resource estimation, scoping studies, and metallurgical testwork at both Niagara and Simandou North, as well as to support general working capital needs.

The company also completed a 20-to-1 capital consolidation in early January 2025, streamlining its capital structure ahead of anticipated project milestones. Arrow continues to maintain a strong commitment to environmental management and community engagement, with 95% of its workforce comprising Guinean nationals and ongoing baseline environmental studies ensuring compliance with local regulations.

Outlook and Market Context

With record bauxite prices currently trading between US$110-130 per tonne CIF China for Guinea-grade material, Arrow’s high-grade discovery at Niagara is well-timed to capture market demand. The company’s focus on a DSO operation aims to expedite production and cash flow generation, while the premium quality hematite fines from Simandou North add diversification and value potential.

Arrow’s progress reflects a disciplined approach to developing starter projects with scalable potential, leveraging strategic partnerships and infrastructure advantages. The upcoming resource estimate and scoping study will be critical inflection points, likely to attract further investor interest and define the company’s near-term development trajectory.