Akora Resources bags up DSO resource upgrade to increase Bekisopa mine life and economics

The 27% increase in indicated DSO resources at Akora Resources’ Bekisopa iron ore project will strengthen the upcoming pre-feasibility study.

Akora Resources’ upgraded Bekisopa DSO resource will increase mine life and economics. Pic: Getty Images

• Akora Resources upgrades indicated Bekisopa DSO resources by 27% to 6.6Mt at 59.7% iron

• This and the 2.1Mt intermediate material resource will support DSO production of up to 2Mtpa

• DSO operations expected to generate strong cash flow to support development of potential Stage 2 green steel zone

Special Report: Akora Resources expects to boost mine life and economics of its planned Bekisopa direct shipping ore operation in Madagascar after increasing resources by 35% to 10.6Mt at 54.8% iron.

Notably, this increase over the 2024 resource estimate was accompanied by a 27% increase in higher confidence indicated DSO resource tonnes to 6.6Mt at 59.7% iron.

Akora Resources’ (ASX:AKO) start-up Stage One DSO operation will produce a high-grade circa 60% iron lump and fines product for use by blast furnace-basic oxygen furnace steelmakers, the dominant technology especially in the major hubs of China and India.

DSO operations are expected to deliver strong cash flow and operating cost margin that will then support development of the potential Stage 2 green steel zone to produce a low-impurity, premium-grade >67% iron concentrate.

That product will be suited to use in lower emissions steel mills, which require high grade, low impurity feedstocks, currently in short supply globally.

The updated resource includes 2.1Mt of intermediate material grading between 30% and 58% iron which mineral processing studies have shown to be readily upgradeable using conventional dry coarse magnetic separation to deliver saleable lump and fines iron ore products.

This material is typically adjacent to the DSO within the at surface weathered zone, offering efficient additions to the mining areas.

Managing director Paul Bibby said the increase in resource will increase the start-up DSO mine life and improve project economics.

“Importantly, the increase to 8.5 million tonnes of indicated DSO resource will strengthen the upcoming pre-feasibility study and is only from drilling along half of the 6km strike length, with future drilling expected to increase resource tonnes and add project mine life.”

The updated resource estimate – particularly the indicated DSO resource and intermediate grade resource – will be used as the basis of the Bekisopa pre-feasibility study that is scheduled for release in March 2025.

This will include a detailed mine plan, production schedule and project financials.

Bekisopa DSO (red) and Intermediate (orange) mineralisation domains contained in the 2025 resource estimate. Pic: Akora Resources

Bekisopa project

AKO first acquired a 75% stake in its flagship Bekisopa iron ore project in June 2014 before acquiring the remaining 25% in July-August 2020.

Prior to the company’s entry, Bekisopa was the focus of three generations of evaluation, the French Geological Society BRGM in 1959-62, the United Nations Development Program in 1976-78 and Cline Mining Corp. in 2007-08.

AKO subsequently defined a maiden inferred resource of 194.7Mt in 2022 that has very low levels of impurities, making it suitable for production of a premium iron concentrate.

This included a resource of 110.2Mt at 32% iron in the Southern Zone, which covers the surface weathered zone and the underlying extensive magnetite resources.

Drilling campaigns in 2022, 2023 and 2024 led to the definition of the DSO resource with further exploration along the 6km strike expected to add further to this resource.

To generate cash in the near-term, the company is advancing plans to produce up to 2Mt per annum of DSO ore with an average grade of 60% iron over the first five years.

Project location map. Pic: AKO

This article was developed in collaboration with Akora Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Akora Resources bags up DSO resource upgrade to increase Bekisopa mine life and economics