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AKORA Resources Advances Plans for Stage 1 Operation at Bekisopa Iron Ore Project

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By Imelda Cotton - 
AKORA Resources ASX AKO Advances Plans Stage 1 Operation Bekisopa Iron Ore Project
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AKORA Resources (ASX: AKO) has continued to advance plans for the production of up to 2 million tonnes per annum of 60% iron average grade direct shipping ore (DSO) from its Bekisopa project in Madagascar for export to blast furnace steelmakers.

The company is also potentially looking to upgrade the ore to a +67% iron concentrate for shipping to direct reduced iron-electric arc furnace steelmakers for the manufacture of greener steel without using coal and generating considerably less carbon emissions.

The two-staged formed part of the project’s pre-feasibility study released in March, which confirmed Bekisopa’s planned Stage 1 DSO operation could cater to primary blast furnace customers using contract mining and mobile processing equipment, and proposed that Stage 2 would use cash generated from the DSO start-up to mine underlying fresh mineralisation and add grinding and magnetic separation circuits for the upgrade.

Project of Significance

Madagascar’s government has identified Bekisopa as a project of significance, with support from the Tanamarina and Bekisopa communities.

Local residents have already received employment offers, and they have played a key role in supporting the company throughout the feasibility process.

AKORA met with regional representatives from the Ministry of Mines and local community during the quarter to reaffirm strong support for the project.

August Capital Raising

AKORA raised $2.91 million in August via a share placement and entitlement offer to advance Bekisopa development work programs.

These will include the start of a definitive feasibility study, completion of an environmental impact assessment, and permitting and licencing activities, including a mining licence application.

Support for the capital raising comes at a time when the company continues to attract strong local backing for the project.

At end September, AKORA held cash reserves of approximately $1.64m and expects to receive $400,000 in proceeds from the capital raising in the December quarter, providing additional liquidity to support operations and growth initiatives.