Akora Resources Ltd (ASX:AKO) has lifted the mineral resource estimate (MRE) for the Southern Zone of the Bekisopa Iron Ore Project in Madagascar to 5.54 million tonnes of direct shipping ore (DSO) grading 60.35% iron in the inferred category, which is 34% more DSO tonnes than estimated in April last year and at a higher grade.
Within this MRE is 4.42 million tonnes of DSO grading 60.86% iron in the indicated category, which the company believes is suitable for a selective mining DSO start-up with relatively low mining and processing capital and operation costs.
This updated Southern Zone MRE is in addition to the previously-estimated 3.6 million tonnes reported in the Northern and Central maiden MREs, bringing the total current DSO resource along the 6-kilometre Bekisopa strike to 9.14 million tonnes.
Future drilling in all three Bekisopa zones is expected to lift the DSO tonnes and grade.
Upgraded Bekisopa Southern Zone DSO resource.
New high-grade zone
During last year's infill drilling campaign at the Southern Zone, Akora completed 123 shallow drill holes for 4,817 metres, of which 3,738 drill intercepts have been assayed and 2,178 Davis Tube tests have been conducted for the MRE.
Part of the work also uncovered a larger, deeper zone of fresh rock iron mineralisation underlying the eastern surface DSO zone that MRE consultant Wardell Armstrong International (WAI) has termed the 'Green Steel' zone.
This very high-grade iron zone averaged 45.3% iron, which is considered amenable for upgrading to a high-grade 68.7% iron concentrate for use in the production of DRI pellets for green steel.
WAI believes the 'Green Steel' zone is readily upgradeable at a low 1.7 mined tonnes per 1 tonne of outstanding 68.7% iron concentrate at 75 microns.
Block model showing the Western and Eastern DSO mineralisation and the significant 34-million-tonne Green Steel zone below the Eastern DSO resource.
“Very encouraging”
Akora managing director and CEO Paul Bibby said: “It is very encouraging to report upgraded DSO tonnes and grade from last year’s infill drilling campaign.
“These 5.54 million tonnes will be the mined tonnes for a lower processing capital and operating cost DSO start-up.
“Beneath the weathered DSO Eastern zone is a high-grade magnetite iron mineralised zone, of 34 million tonnes at 45.3% iron, that could become the focus of an economical Green Steel concentrate production start-up.”
Forward plan
Akora is preparing for an additional 800 metres of DSO infill drilling across the Bekisopa Northern and Central zones to further expand the start-up DSO tonnage.
Meanwhile, WAI will commence a review of the yet-to-be-released 2022 scoping study based on the indicated DSO start-up tonnes and grade.