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Highlights
- 35% boost in resource estimates.
- Enhanced DSO and intermediate-grade figures.
- Stage 1 operation set for 2Mt annually.
Akora Resources (ASX:AKO) has recently announced a significant enhancement at its Bekisopa project in Madagascar, reporting a 35% increase in the indicated and inferred mineral resource estimate. Extensive drilling and comprehensive study work have revealed considerable potential to expand the iron ore opportunity at this promising site.
The updated estimate now stands at 10.6 million tonnes with an average grade of 54.8% iron, replacing the earlier figure of 7.9 million tonnes at 58.9% iron, which was disclosed in May. Importantly, the new resource calculation incorporates 2.1 million tonnes of intermediate-grade material averaging 39.9% iron. Recent metallurgical tests have shown that this material can be upgraded to saleable product specifications, further broadening the development prospects.
Notable improvements have also been seen in the direct shipping ore (DSO) resource. A 27% increase has been achieved, with the DSO resource rising from 5.2 million tonnes to 6.6 million tonnes at 59.7% iron. When combined with the intermediate-grade material, the overall indicated DSO and related resource figures have surged by 93%, climbing from 4.4 million tonnes at 60.9% iron to 8.5 million tonnes at 55.4% iron. These revised figures are expected to be incorporated into the upcoming pre-feasibility study, scheduled for release in March.
The expanded resource base carries significant implications for the project’s economic outlook. This development not only reinforces the current operational framework but also lays the groundwork for extending the mine’s productive lifespan. Future drilling campaigns are anticipated to further augment resource tonnage and potentially extend the strike length of the mineralisation, providing additional avenues for growth.
The initial phase will see the launch of a Stage 1 DSO operation, designed to deliver up to 2 million tonnes per annum of high-grade iron ore, available in both lump and fines products. This product is well suited for use by large-scale steelmaking operations utilizing blast furnace and basic oxygen furnace processes. Revenue projections suggest that the operation could generate approximately $842 million over the first five years, supporting the development of a potential Stage 2 green steel zone aimed at producing a low-impurity, premium-grade concentrate with iron content exceeding 67%.
These developments mark an important milestone for the Bekisopa project, underscoring its promising future as it moves toward further expansion and improved economic viability. Industry analysts view these advancements as a clear indicator of the project’s evolving potential, with ongoing exploration expected to unlock additional value from this resource-rich venture, significantly.
