Akora Resources Ltd (ASX:AKO) has identified high-grade iron ore with average iron content suitable for direct shipping ore (DSO) in the fourth drilling campaign at the flagship Bekisopa Project in Madagascar.
Of 65 shallow drill holes completed across the northern and central zones of the project last year, 52 intercepted high-grade iron mineralisation.
The results add to the potential of Bekisopa’s indicated category 4.4 million-tonne DSO resource, which is currently hosted entirely within the southern zone of the project tenure.
Improving project financials and cash flow
“The drilling across Bekisopa’s northern and central zones was designed to increase the project’s overall DSO resource tonnage, currently hosted entirely in the project’s southern zone,” Akora Resources managing director and CEO Paul Bibby said.
“The assay results will be used by Wardell Armstrong consultants to update the current mineral resource estimate for the Bekisopa Project with additional DSO tonnes expected to add mine life, improve project financials and increase cash flow for our planned low capital DSO start-up project.”
The company is targeting a new mineral resource estimate for the second quarter of this year.
AKO is developing Bekisopa as a high-grade (greater than 61% iron) DSO operation that could potentially ramp up to produce 2 million tonnes per year over an initial five-year mine life.
The company says the start-up operation would produce high-grade lump and fines product for use by Blast Furnace-Basic Oxygen Furnace (BFBOF) steelmakers, and return strong cash flows and operating cost margin.
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