Arrow Minerals Ltd: Next Phase of Metallurgical Testwork

Perth, Australia - Arrow Minerals Ltd. (ASX:AMD) recently signed a Memorandum of Understanding (MoU) providing a framework for potential mine gate sales of iron ore to Baosteel Resources Holding (shanghai) Co.Ltd (Baosteel) from Arrow's Simandou North Iron Project.

Key Points

- Arrow and Baosteel have signed an MoU for potential mine gate sales of its iron ore, enabling access to the Simandou port and rail, the world's largest and newest bulk infrastructure development. This strategic partnership drives forward Arrow's development activities on its iron ore and bauxite projects

- Arrow has commenced the next phase of metallurgical testwork on the Simandou Formation Oxide BIF (Oxide BIF) identified at its Simandou North Iron Project

- The testwork will utilise 28 composite samples selected to represent the Friable Oxide BIF and Intact Oxide BIF zones at the Kowouleni and Dalabatini prospects

- The results will help determine the process flowsheet which will in turn be used in scoping study-level estimates for processing plant capital and operating costs

- Arrow's Simandou North Iron Project sits immediately adjacent to the giant Simandou iron ore project being developed by Baosteel, Winning consortium and the SimFer JV

- The Simandou rail line, which connects to the port, passes right next to Arrow's Simandou North Iron Project

This important strategic partnership will leverage complementary strengths and resources, including access to the Simandou port and rail and markets, to advance the development of Arrow's iron ore and bauxite projects.

Arrow is pleased to advise that it has commenced the next phase of pre-development work at its Simandou North Iron Project in Guinea with the start of follow-up metallurgical testwork.

In August this year, Arrow announced a significant Exploration Target (281Mt to 716Mt Simandou Formation Oxide BIF at 33-46% Fe) at the project, as well as results of bench scale metallurgical testwork on the same mineralisation.

Cautionary Statement: The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource. It is uncertain if further exploration will result in the estimation of a Mineral Resource.

Arrow Managing Director David Flanagan said: "The results of the preliminary metallurgical testwork were very encouraging, pointing to +60%-Fe grade product via a simple wet gravity process. When combined with the recent MoU with Baosteel relating to mine gate sales at Simandou North, this testwork takes on heightened importance as it feeds into flowsheet design, product specifications and value in use as part of ongoing contract negotiations".

"Combined with our Exploration Target, this will provide important technical and financial information about the outlook for the project".

The results of the individual unit tests completed as part of the preliminary bench scale testwork were used in a flowsheet simulation which achieved a 61-64% Fe, low alumina (<0.5%) hematite fines product from a simple wet gravity process.

Arrow has started more comprehensive testwork which has been awarded to Nagrom, a metallurgical laboratory based in Perth. Master composites will be processed through an extensive characterisation flowsheet. The two master composites (one each of Friable and Intact Oxide BIF) will be composed of individual diamond drill core intervals. The master composites will be characterised by use of standard iron ore processes including size fraction, chemical analysis, mineralogy, magnetic separation (for the recovery of hematite) and gravity separation (heavy liquids separation) unit tests. All unit tests will seek to better characterise the Friable and Intact Oxide BIF materials, facilitating the development of a scoping study process flowsheet.

The beneficiation methods being assessed are widely used in iron ore processing in the Pilbara and globally in mineral sands production. In contrast to Pilbara iron ore beneficiation processes where most are seeking to reduce alumina and silica in the final product, for this project the process is only about reducing silica in the final product. The mineralisation of the Simandou Formation Oxide BIF is naturally very low in alumina.

In order to further de-risk the process flowsheet, additional larger scale "bulk runs" of selected processes are planned following the initial characterisation. These bulk runs may include spiral separation and up-current classifier tests. Bulk runs provide increased certainty around equipment and material performance leading to a more robust mass and grade balance for the flowsheet.

This testwork program will allow the definition of a scoping study-level process flowsheet, which will form the basis of plant capital and operating cost estimates for the project. Subsequent programs will include additional testwork to refine and further develop the flowsheet and end product specification.

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About Arrow Minerals Ltd:

Arrow Minerals Ltd (ASX:AMD) is an exploration and development company focused on delivering long-term shareholder value through the discovery of economic mineral deposits in West Africa. The Company has implemented a systematic science-based exploration philosophy whilst remaining commercially nimble to ensure we capture and retain value.

Source:
Arrow Minerals Ltd

Contact:

Arrow Minerals Ltd E: info@arrowminerals.com.au WWW: www.arrowminerals.com.au