Arrow Minerals (AMD.AX) has released an update on its Niagara Bauxite project in Guinea, located approximately 100 kilometers from the Simandou railway and less than 400 kilometers from the port of Morebaya. The Niagara bauxite occurrence isn’t new as previous operators (including Vale) have completed 448 holes in the past but as the bauxite price started to increase in the past few years, there is a renewed interest in the space. The project hasn’t been drilled in the past 17 years but since 2007 the total size of the bauxite market has more than doubled to 440 million tonnes per year. Additionally, back in the day, infrastructure was way worse and the new multi-user railway will help to unlock the value of the asset.
The exploration target outlines a total of 170-340 million tonnes at an average grade of 40-46% Al2O3 and 1-4% SiO2 which should make the product DSO quality.
Disclosure: The author has no position in Arrow Minerals. Please read the disclaimer.
