Arrow Minerals Plans Pilbara Iron Ore Drill Program Next to Rio Tinto Operations

Arrow Minerals (ASX: AMD) is planning a drill program targeting DSO-grade channel iron deposits at its Yarraloola tenements in the Pilbara, 15km from Rio Tinto's 65Mtpa Robe River operation — here's what investors need to know about the Arrow Minerals Yarraloola iron ore drilling campaign.
By William Hadrian -
  • Arrow Minerals is planning a drill program at its 415km² Yarraloola tenements in the Pilbara, targeting channel iron deposit mineralisation that has already returned surface samples at up to 58.3% Fe — Direct Shipping Ore grade.
  • The Yarraloola package sits less than 15km from Rio Tinto's Warramboo Mine, part of the 65Mtpa Robe River Joint Venture, and shares a tenement boundary with ground the RRJV acquired for A$75 million in 2025.
  • Two priority targets have been defined: the BBQ Valley CID trend with a mapped strike length exceeding 2km, and the Eastern Magnetic Target — a 10km-long, completely undrilled anomaly that the nearby Mardie port has made commercially viable to pursue.
  • Drilling is contingent on the formal grant of tenement application E08/3668, which Arrow acquired a 70% stake in from Leeuwin Metals subsidiary Voyage Minerals in August 2026.
  • A seven-stage phased work program — from desktop WAMEX review through passive seismic to RC drilling — is underway, with drill results also informing Arrow's option to acquire a 70% interest in two additional tenement applications.
Summarise with AI:

Arrow Minerals plots drill program for Pilbara iron ore targets

Arrow Minerals (ASX: AMD) has commenced planning for a drill program targeting channel iron deposit (CID) and detrital iron ore mineralisation on its Yarraloola tenements in the Pilbara, Western Australia. The tenements sit less than 15km from the Warramboo Mine, part of the 65Mtpa Robe River Joint Venture (RRJV) operated by Rio Tinto, and within 50km of the Mardie bulk commodity export port. Drilling is contingent on the formal grant of tenement application E08/3668.

Managing Director David Flanagan

“We have assembled a package of exceptional iron ore tenements on the edge of Rio Tinto’s world-class operations and with the potential to access simple, low-cost infrastructure.”

“We are pushing to start drilling as soon as tenure is granted.”

Building the Yarraloola iron ore land package

Arrow has moved quickly to consolidate a substantial Pilbara land position in the months leading up to this drill announcement:

  • 18 August 2026: Agreed to acquire a 70% stake in E08/3668, a Direct Shipping Ore-grade iron ore project, from Voyage Minerals Pty Ltd, a subsidiary of Leeuwin Metals Ltd (ASX: LM1)
  • 17 September 2026: Submitted an exploration licence application over E08/3894, immediately west of the existing package
  • Combined Yarraloola holding (once granted): 415km² across four adjoining tenements: E08/3668, E08/3894, E08/3803, and E08/3810

The package shares tenement boundaries with permits associated with the RRJV’s acquisition of CZR Resources’ Robe Mesa Iron Ore Project for A$75 million in 2025, signalling the quality of the surrounding ground.

Two priority targets defined for drill testing

BBQ Valley CID target

The BBQ Valley trend is the primary focus of Arrow’s exploration programme. Previous explorers, including CZR (formerly Coziron) and Leeuwin Metals, recorded DSO-grade rock chip samples at surface across the trend, with iron grades up to 58.3% Fe reported by Coziron in 2014. The mapped outcropping CID unit has a strike length of more than 2km and a width of more than 250 metres, with its north-west and south-east extents concealed by cover in each direction.

Iron mineralisation is also visible on the verges of the North Western coastal highway, which crosses the trend. The style of deposit directly mirrors the CID mineralisation being mined by the RRJV on adjoining tenements. The programme aims to test for both outcropping and concealed CID mineralisation.

Eastern Magnetic Target

The Eastern Magnetic Target is a meandering, subtle magnetic anomaly more than 10km long and up to 1km wide, completely untested by drilling. It spans the tenure boundary between E08/3803 and E08/3668, trending NNW-SSE and generally sub-parallel to the BBQ Valley trend.

Arrow considers the feature may be associated with a CID palaeo-channel, more recent channel fill, or the volcaniclastic sequence noted at Yarraloola on E08/3010. Historically, targets like this without clear infrastructure solutions would have been considered low priority. The recent development of the Mardie port facility, funded by contributions from the Northern Australia Infrastructure Fund and located less than 50km away, has changed that calculus.

Yarraloola Priority Drill Targets Comparison

What is channel iron deposit mineralisation?

Channel iron deposits, or CIDs, form when iron-rich material accumulates in ancient river channels over millions of years. The material consists of pisolitic iron ore, meaning small, pea-shaped grains of iron oxide. CID deposits can range in thickness from less than 1 metre to 100 metres.

The key commercial concept here is Direct Shipping Ore (DSO) grade. DSO refers to ore with sufficient iron content to be loaded directly onto a ship without requiring crushing, processing, or beneficiation first. That matters because it means significantly lower capital costs and a faster potential path to revenue compared with lower-grade deposits that need processing infrastructure.

At Yarraloola, the BBQ Valley trend has already returned surface samples at DSO grade. The goal of the upcoming programme is to confirm whether that grade extends at depth and along strike beneath the transported cover.

Phased work program: desktop to drill bit

Arrow’s exploration programme for E08/3668 and E08/3803 is structured in a systematic sequence, moving from data review through to drill testing:

  1. Desktop review of more than 450 entries across 74 accession-numbered open file reports from the WA Government’s WAMEX statutory reporting system
  2. Field validation of Leeuwin rock chip sampling across the main BBQ Valley outcrop and additional anomalous targets to the east
  3. Geological and regolith/landform mapping using high-resolution DEM and image data
  4. High-resolution drone or ground magnetics, upgrading on existing 100m line-spaced aeromagnetic data
  5. Ground gravity at nominal 200m line spacing with 100m station spacing, to detect palaeochannels hosting CID
  6. Passive seismic on a 200m grid, infilled to 100m across the interpreted channel axis, to model depth to basement and channel geometry
  7. RC drilling supported by downhole gamma and gamma-gamma density measurements, multi-element geochemistry, and spectral mineralogy

Results from drilling will inform Arrow’s decision on whether to exercise its option to acquire a 70% interest in associated tenement applications E08/3777 and E08/3719.

Method Purpose Key Output Status
Desktop WAMEX review Assess 450+ historical open file entries Data gaps identified; digital datasets sourced Underway
Field validation Confirm Leeuwin rock chip results at surface Validated sample locations and additional targets Planned
Geological mapping Define cover limits and regolith units Refined target boundaries Planned
Drone / ground magnetics Improve resolution on existing aeromagnetic data High-resolution magnetic image Planned
Ground gravity Detect palaeochannels hosting CID Channel geometry model Planned
Passive seismic Model depth to basement and channel fill Estimated channel thickness Planned
RC drilling Test CID mineralisation at depth and along strike Drill results; option exercise decision Subject to tenure grant

Arrow’s broader portfolio: more than iron ore

The Yarraloola iron ore programme sits alongside a range of other assets across AMD’s portfolio:

  • Niagara Bauxite Project (Guinea): Maiden Mineral Resource of 185Mt at 42.3% Al₂O₃, estimated by SRK Consulting (UK) Ltd; a new three-year industrial exploration permit was awarded in July 2026
  • Simandou North Iron Ore Project (Guinea): Currently under review by the Guinea Government; Arrow has met all reporting requirements and signed an MOU with Baosteel for mine gate iron ore sales, though the outcome and timing of the review remain uncertain
  • Yarraloola Copper-Gold Project (E08/3010 and E08/3803): Existing granted tenure adjoining the iron ore tenements

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Frequently Asked Questions

What is a channel iron deposit (CID) and why does it matter for Arrow Minerals?

A channel iron deposit forms when iron-rich material accumulates in ancient river channels over millions of years, producing pisolitic iron ore that can often be mined at Direct Shipping Ore grade — meaning it can be loaded onto a ship without processing. Arrow's Yarraloola BBQ Valley target has already returned surface samples at up to 58.3% Fe, which is DSO grade, making it commercially significant if the grade is confirmed at depth.

What is Direct Shipping Ore (DSO) grade iron ore?

DSO refers to iron ore with sufficient iron content to be shipped directly to a customer without requiring crushing, processing, or beneficiation infrastructure, which significantly reduces capital costs and accelerates the potential path to revenue compared with lower-grade deposits.

How close is Arrow Minerals' Yarraloola project to existing iron ore infrastructure?

The Yarraloola tenements sit less than 15km from Rio Tinto's Warramboo Mine, part of the 65Mtpa Robe River Joint Venture, and within 50km of the Mardie bulk commodity export port — proximity that Arrow says materially changes the commercial viability of targets that would previously have lacked an infrastructure solution.

When will Arrow Minerals start drilling at Yarraloola?

Drilling is contingent on the formal grant of tenement application E08/3668, which Arrow acquired a 70% stake in during August 2026 but which has not yet been formally granted. Arrow's Managing Director David Flanagan has stated the company is pushing to start drilling as soon as tenure is granted.

What other assets does Arrow Minerals hold beyond the Yarraloola iron ore project?

Arrow's portfolio includes the Niagara Bauxite Project in Guinea with a maiden mineral resource of 185Mt at 42.3% Al₂O₃, the Simandou North Iron Ore Project in Guinea (currently under government review with an MOU signed with Baosteel), and the Yarraloola Copper-Gold Project on adjoining granted tenure in Western Australia.

William Hadrian
By William Hadrian
Partnerships Director
William supports Discovery Alert subscribers across Australia and overseas, helping them tailor alerts, troubleshoot technical issues, and optimise platform settings to suit their workflow.
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