Akora Resources ramps up Bekisopa DSO project with completion of key infill drilling program

Akora Resources (ASX: AKO) has continued its plans to expand the resource base at its flagship Bekisopa iron ore project in Madagascar with the completion of an infill drilling program.

After announcing a significant increase to the Bekisopa mineral resources estimate in early June, Akora has now completed the 500-metre infill drilling program across 64 shallow holes.

The results of the program will support a pre-feasibility study (PFS) for a start-up Stage 1 direct shipping ore (DSO) operation at Bekisopa.

Madagascar visit

Akora’s general manager of development Jason Whittle also revealed that the company recently hosted potential backers of the project, with a strategic investor participating in an in-country visit.

“Visiting Madagascar and the project sites with a prospective strategic investor in May has helped crystallise the necessary actions and priorities for Akora to continue developing the Bekisopa PFS,” Mr Whittle said.

“Meeting key in-country government officials, community leaders and service providers was instrumental.”

“Committing to the next stages of exploration and technical drilling and preparing for the detailed environmental and social assessment will all help advance the project towards commercialisation.”

Resource upgrade

Earlier this month, Akora reported a 42% increase in Bekisopa’s indicated and inferred DSO resource to 7.9 million tonnes at a grade of 58.8% iron.

This increase will be used as part of a planned update to the 2023 Bekisopa scoping study, where an uplift in the project’s Stage 1 DSO mine life and project financials is expected.

This followed a DSO-targeted shallow infill drilling program in October 2023 that included maiden resources from the project’s Northern and Central zones as well as a small uplift in DSO-inferred tonnage in the Southern zone.

An updated scoping study released in November 2023 found that production at Bekisopa could potentially ramp up to 2Mtpa over an initial 5-year mine life.

This start-up Stage 1 operation would produce high-grade lump and fines with an average 61% iron grade for use by blast furnace-basic oxygen furnace steelmakers and return strong cash flows and operating cost margin.

Additional drilling campaigns

Akora is now preparing to initiate geotechnical and hydrogeological drilling campaigns at Bekisopa for June and July to support the project’s PFS, which is being completed by Wardell Armstrong International.

Geotechnical drilling will focus on providing required rock and geological structural properties to allow for the mining and geotechnical design of the DSO open pits.

The hydrological drill rig will be drilling deepwater monitoring holes in the north and southern resource areas to provide information on the presence of subsurface water, which will be used to inform the mine design and environmental management plans developed through the PFS.

Satrokala plans

Mr Whittle said a visit to the company’s Satrokala project site, with its 10km-long magnetic anomaly, was a highlight of his recent Madagascar tour.

“With an environmental permit for early exploration works approved at the project, I am very excited to have committed to the maiden exploration drill program which will get started in July,” he said.

Ground magnetic survey results and surface rock chip sampling information have been used to inform the planned drill hole locations.

Ten holes have initially been designed to test a depth of 100m each.

Assay results are scheduled for October 2024 to take into account drilling completion, transport, logistics and then assaying timelines.