AKORA Resources (ASX: AKO) has completed 260 metres of a planned 300m trenching campaign to expand the direct shipping iron ore (DSO) resource at its high-grade Bekisopa iron ore project in Madagascar.
The company is utilising local contract labour to assist with the mapping of historical trenches and pits across the tenement, focused on the zone between the Southern and Central resource areas across 1.5 kilometres of strike length.
The zone, which contains a significant number of historical exploration pits, presents strong potential to link the two deposits.
Pre-Feasibility Study
Trenching commenced after the release of a pre-feasibility study in March for the Bekisopa Stage 1 operation that confirmed a low capital cost entry case of US$60.6 million and a pre-tax cash flow of US$310m over an initial six-year mine life.
The work follows the recent completion of surface outcrop mapping to add further detail to the site geological model and support future exploration activities.
AKORA chief executive officer Peter Bird said the company continues to make good progress at its flagship development.
“Our trenching program is now over 85% complete and is delivering encouraging results as we work to expand the high-grade DSO resource,” he said.
“We continue to maintain strong relationships with our local communities, providing employment opportunities, healthcare, and educational support that underpins our commitment to responsible and inclusive project development in Madagascar.”
Local Community Support
The local community is supporting AKORA’s work at Bekisopa, with a number of local villagers involved in the current exploration program.
The company recently hosted a community meeting to provide an update on project activities, during which it also committed to the delivery of medical supplies to enable the region’s doctors to address the healthcare needs of residents.
The project is also receiving interest from international investors, reflecting growing confidence in the high-grade DSO and longer-term iron ore concentrate (magnetite) opportunities.
AKORA remains confident that the country’s recent political turmoil is now behind it, after the swearing-in this week of a new President and Prime Minister.
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