Akora Resources identifies 10km magnetic anomaly at Satrokala iron ore project

A strong and continuous magnetic anomaly measuring approximately 10 kilometres in length has been identified at Akora Resources’ (ASX: AKO) Satrokala iron ore project in Madagascar.

The feature is believed to be 66% longer than the company’s more advanced high-grade Bekisopa project located 40km to the north-east.

It was identified after a magnetic survey in November across one-third of a potential 30km of prospective iron mineralisation previously confirmed in the area.

The survey was conducted under the supervision of Planetary Geophysics and used the same equipment and approach employed at Bekisopa in October 2019.

Magnetic units

Up to eight magnetic units have since been modelled at Satrokala, occurring along the strike length of the identified anomaly.

In the north, the combined anomaly unit width is reported to be 450 metres widening to 1,280m in the south, at gradients of several hundred metres to more than 1km at depth.

The new anomaly is expected to assist Akora in pinpointing exploratory maiden drilling locations being planned for later this year to confirm mineralisation widths, type and grades.

Encouraging assays

In mid-2022, Akora reported “encouraging” assays from 102 rock-chip samples collected at Satrokala.

Grades ranged from 16.33% up to 68.03% iron, with an average of 58.77%.

The results indicated that Satrokala could potentially be a significant iron resource for Akora, subject to the completion of systematic and positive exploration activities.

Akora managing director Paul Bibby said the latest findings also point to Satrokala’s potential.

“This is a very significant result, which confirms our expectations and highlights that our tenement area is becoming a substantial iron ore district,” he said.

“Satrokala is emerging as a major component of our exploration and development strategy and its potential to deliver high-grade iron ore tonnage will become clearer as drilling results are delivered.”

High-grade projects

Akora is an Australian resources company focused on the development of four high-grade iron ore projects in Madagascar to service the steel industry’s accelerating decarbonisation.

The company’s flagship Bekisopa project has an inferred resource of 194.7 million tonnes with very low impurities, enabling the production of a premium-priced concentrate grading more than 68% iron.

Direct reduced iron-electric arc furnace technology — used to make greener steel without coal and produces considerably less carbon emissions — requires iron ore grades of at least 67%.

Advancing Bekisopa

Akora is advancing plans at Bekisopa to produce up to 2Mtpa grading at 61% for the first five years for shipping to blast furnace-basic oxygen furnace steelmakers.

This plan is based on a scoping study released in November and recently received a boost after 52 out of 65 drill holes encountered new high-grade mineralisation.

It was the fourth drilling campaign to date at Bekisopa and returned direct shipping ore (DSO)-style intersections at grades of 58% and above at depths of up to 15m from surface.

The results will be used to update the project’s current mineral resource estimate with additional DSO tonnes.

It is expected to add mine life, improve project financials and increase cash flow for the low capital project.

In December, Akora announced it would proceed with a pre-feasibility study for Bekisopa.