Akora Resources advances Bekisopa iron ore project with geotechnical and hydrogeological work

Akora Resources (ASX: AKO) is increasing activity at its flagship Bekisopa iron ore project in Madagascar.

The company’s plans to develop a high-grade direct shipping ore (DSO) operation received a boost during the quarter as it improved the project’s indicated and inferred resource by 42% to 7.9 million tonnes at an average grade of 58.8% iron.

Shallow program

The resource increase came from a shallow in-fill drilling program in October targeting high-grade DSO and maiden resources at the project’s Northern and Central zones, as well as a small uplift in inferred tonnage at the Southern zone.

Akora has designed a new campaign of in-fill DSO drilling across the Northern and Central zones to build on the October results and deliver DSO resources into the indicated category.

Meanwhile, the company continued to make strong progress with a 500-metre in-fill drilling campaign in June across 64 shallow holes in the Southern zone, which was completed on time and on budget.

Geotechnical work

Akora completed a geotechnical drilling program for the Bekisopa pre-feasibility study in July, comprising eight holes for 400m.

The holes covered proposed DSO mining pits across the Southern, Central and Northern zones, with samples now being prepared for laboratory evaluation.

The geotechnical work aimed to provide rock strength data for the preparation of mining pit shapes for the DSO material and confirm the competency of the iron ore resource for drill and blast or simple machine ripping prior to digging.

Preliminary indications showed the DSO resource to be unlikely to require drill and blast, which would reduce complexity and operating costs, as well as support the assumptions of the project’s updated scoping study released in November.

Water program

A hydrogeology drilling program commenced in mid-June with two holes at 150m depth and another two holes at 70m.

The program was developed to identify the location and quality of sub-surface water resources to support the environmental management plan and to determine if they might impact mine pit designs or require de-watering infrastructure.

Preliminary data identified that sub-surface water is present at approximately 30m depth, with reasonable inflows at 55m.

Akora said this was a positive finding, which would reduce the need for water removal as the DSO pits are not expected to operate below 30m.

The hydrogeological data will be used by Perth-based Wai Consulting to develop site water models in support of the project’s environmental and social impact assessment.

Satrokala drilling

Akora commenced a maiden drilling program at the Satrokala iron ore project earlier this month comprising 10 holes, each to 100m depth.

The program is expected to be completed in mid-August, with assays scheduled for the September quarter.

A magnetic survey in April identified a major anomaly up to 10km long and 2km wide, making Satrokala around 66% longer than Bekisopa, which sits 40km to the north-east.

Capital raising

Akora completed a $3.8 million capital raising during the quarter, comprising a placement for $801,000 and an entitlement offer for $3m.

Proceeds will ensure the company’s work programs are fully funded and allow for continued progress across all projects.

At the end of June, Akora held cash reserves of approximately $2.9m.