Akora Resources uncovers 68.03% iron in unexplored Satrokala prospect
Easing COVID restrictions in China has pushed the iron ore price past U$145/t for a 63.5% product.
Rock chips from Akora Resources’ (ASX: AKO) Satrokala prospect within the southwest tenements of its Bekisopa project have returned up to 68.03% iron.
Describing Satrokala as unexplored, Akora collected the rock chips over 10km of strike.
Akora managing director Paul Bibby said the results were “extremely encouraging” and indicate another “potentially high-grade discovery” within 40km of the flagship Bekisopa resource.
“The 102 rock chip assays show very promising iron grades.”
Mr Bibby added that 89 samples had delivered iron grades above 50%, with an average of 62%.
Of the 102 samples, 66 returned an average grade of 64.5% iron and ranged from 58% to 68%.
Mr Bibby said the results indicated Satrokala could host a resource comparable to Bekisopa.
Bekisopa iron ore project
Akora’s Bekisopa project has a global inferred resource of 194.7 million tonnes, which includes 7.8Mt of direct shipping ore.
The DSO grades 64% iron and is at surface and from less than 30% of the entire 6km strike of the main anomaly.
At a 75-micron grind size, the 194.7Mt resource produces an average 67.6% iron concentrate grade, which Akora describes as a premium product with low impurities.
The global resource is made up of 110Mt from the Southern Zone, 41.2Mt in the Central Zone and 43.3Mt in the Northern Zone.
Bekisopa is located in Madagascar and contains “plenty of resource upside”.
Akora’s strategy is to initially mine the very high-grade DSO, which will have a lower capital outlay and operating costs.
The company completed a $3.5 million capital raising in April to accelerate exploration at Bekisopa.
Recent exploration and resource success at Bekisopa comes as the iron ore price continues to surge.
Easing COVID-19 restrictions in China have spurred the commodity’s price above US$146 a tonne for product with 63.5% iron.
Other iron projects
As well as Bekisopa, Akora also owns the Tratramarina and Ambodilafa iron ore projects in Madagascar.
Combined, the three projects cover 308 square kilometres of tenements.