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Akora Resources looking to expand Bekisopa indicated resource with high-grade iron assays

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By Imelda Cotton - 
AKORA Resources ASX AKO Bekisopa further high-grade DSO
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Assays from Akora Resources’ (ASX: AKO) fifth drilling campaign at the Bekisopa project in Madagascar have returned multiple high-grade intersections of mineralisation suitable for a direct shipping ore (DSO) operation.

The 61-hole campaign for 508 metres was completed in June to determine the extent of the eastern and western limbs of the project’s southern zone, with a view to increasing the indicated resource of 4.4 million tonnes grading 60.9% iron.

The program, which included infill drilling vertically into the weathered portion of the southern zone on a 50m by 50m spacing, returned grades of up to 67% from surface to a maximum depth of 12m with a total of 35 holes intersecting higher-grade potential DSO material.

Resource expansion

Managing director Paul Bibby said the results had increased the potential to expand the indicated resource across Bekisopa’s southern zone.

“Our aim was to deliver more high-grade iron ore tonnes for a pre-feasibility study due for completion in the new year,” he said.

“The assays are now with our consultants, who will update the mineral resource estimate for Bekisopa, with additional tonnes expected to add mine life, improve project financials and increase cash flow for our planned low-capital DSO start-up project.”

Scoping study

The DSO resource formed the basis of a robust scoping study published in November 2023, which found that Akora could potentially ramp up Bekisopa production to 2Mtpa over an initial five-year mine life.

The start-up operation would produce an average-grade lump and fines product of higher than 60% iron for use by blast furnace-basic oxygen furnace steelmakers and return strong cash flows and operating cost margins.

The company said at the time that a high-grade DSO lump and fines start-up operation using at-surface, weathered iron mineralisation would need much less time, resources and capital to deliver to market.

Akora announced in December 2023 that it had advanced plans to start a pre-feasibility study for the project, focused on the low-capex option and supported by the southern zone resource, which makes up 20% of Bekisopa’s 6km strike length.