Akora Resources heading to green steel future after samples return high-grade assays

Madagascar explorer Akora Resources (ASX:AKO) reports that direct shipping ore (DSO) bulk samples from its Bekisopa iron project have returned “exceptional” assay results.

These included 67.75% lump iron ore and 64.65% fines iron ore products.

In October 2022, while completing its infill drilling campaign, Akora collected bulk samples for evaluation from six locations along and across 6km strike at Bekisopa.

These samples were taken for comparison to the near surface weathered zone drilling assays and for input into the upcoming scoping study update.

Low impurity levels

Moreover, these samples contained low impurity levels.

In the lump sample, there was 0.78% silica and 1.5% aluminium oxide, while in the fine sample the respective levels were 3.49% and 2.3%.

Managing director and chief executive officer Paul Bibby said the iron grades seen in these lump and fines sample underline the company’s confidence in the Bekisopa project.

“The DSO lump bulk sample grade of 67.75% iron is outstanding,” added.

This could deliver a premium around US$42 per tonne above the current iron ore benchmark, a significant advantage from selectively mining near-surface DSO, Mr Bibby continued.

Green steel potential 

Akora is eyeing the green steel developments, which look have a growing market supply gap more than doubling between 2030 and 2040 and opening an opportunity for Akora’s getting into production in Madagascar.

Key markets will be the growing Indian iron ore and steel sector and the Middle East which is eyeing a growing need for DSO green pellets.

The company is now planning to conduct value-in-use testing to further evaluate the suitability of Bekisopa iron ore products for iron and steel making operations.

An updated mineral resource estimate is expected in late May.

Bekisopa has had much exploration over the years

Between 1959 and 1962 the French geological agency, BRGM — long active in Francophone Africa — did 4,000m of trenching at Bekisopa, along with digging 564 pits and drilling 22 holes, the last of which which intersected high-grade iron occurrences.

In the period 1976-1978, the United Nations Development Program did more drilling at the project.

Akora followed up this work in 2014 by collecting 118 rock chip samples, assays of which revealed an average 66.7% iron content and with low impurities; and 21 of those samples returned grades above 69%.