AKORA Resources Progresses Iron Ore Projects in Madagascar
AKO (AKO) Share Update July 2024 Tuesday 16th
AKORA Resources Advances Bekisopa and Satrokala Iron Ore Projects
AKORA Resources (ASX: AKO) has made significant advancements in its Bekisopa and Satrokala iron ore projects in Madagascar, completing crucial drilling programs and progressing road route designs.
Instant Summary:
- Completion of Bekisopa Geotechnical and Hydrogeological drilling programs.
- Identification of beneficial subsurface water at +30m depth.
- Progress on Bekisopa to Satrokala road route survey and design.
- Commencement of Satrokala exploratory drilling with 1,000m planned.
Project Update
AKORA Resources has recently completed 500m of infill Direct Shipping Ore (DSO) drilling at Bekisopa. This drilling is part of the Pre-Feasibility Study (PFS) mine design, providing essential data for future operations. Additionally, the Hydrogeological drilling program has identified subsurface water at depths of over 30 meters in four wells, which is favorable for both operational and environmental considerations.
The company has also made progress in the road route survey between the Bekisopa and Satrokala projects. An experienced team has identified a preferred new road and possible river crossing location, which is critical for logistics and capital cost determination for the PFS.
Exploratory Drilling at Satrokala
On July 9, 2024, AKORA commenced its maiden exploration drilling at the Satrokala site, with plans to drill ten 100-meter deep holes. This follows the granting of environmental approval and the mobilization of the geological team and drilling contractor to the site. The drilling program is expected to be completed by late August 2024.
Financial and Community Support
Supported by a recent A$3.8 million capital raising, AKORA is advancing its PFS for the Bekisopa Stage 1 DSO operation. This operation aims to produce up to 2 million tonnes per annum of approximately 60% Fe average grade lump and fines product for blast furnace steelmakers. AKORA's Managing Director, Paul Bibby, expressed optimism about the progress and community support for the projects.
Geotechnical and Hydrogeology Drilling Details
The Geotechnical drilling program, which includes eight holes totaling 400 meters, aims to provide rock strength data for mine design and assess the competency of the iron ore resource. Preliminary indications suggest that the resource is of low competency, reducing the need for complex and costly drilling and blasting operations.
The Hydrogeology program, which began in mid-June 2024, has drilled four planned wells to depths of 150m and 70m. The program aims to identify water levels and recharge capacity, provide baseline information for environmental management, and determine the impact of subsurface water on mine pit designs.
Road Route Design
The road route survey work, completed in late June 2024, is a crucial step in advancing the PFS and moving the project towards commercialization. The survey has identified a suitable roadway and river crossing, with detailed engineering and cost assessments currently in progress. A further update on the road design is expected in August 2024.
Satrokala Exploration Drill Program
The Satrokala exploration drill program, which commenced on July 9, 2024, is guided by a 2023 ground magnetic survey. Ten locations have been identified for drilling, with each hole planned to reach a depth of 100 meters. The program is expected to take around six weeks to complete, with assay results scheduled for Q4 2024.
The completion of the Geotechnical and Hydrogeological drilling programs at Bekisopa, along with the progress in road route design and commencement of exploratory drilling at Satrokala, are positive developments for AKORA Resources. These advancements are likely to enhance investor confidence and potentially boost the company's stock price. The identification of subsurface water and the low competency of the iron ore resource could reduce operational costs and complexity, further supporting the project's feasibility.
Investor Reaction:
Investors and analysts have reacted positively to the news, noting the significant progress in both the Bekisopa and Satrokala projects. The successful capital raising and community support have also been highlighted as key factors contributing to the project's advancement.
Conclusion:
AKORA Resources' recent advancements in its Bekisopa and Satrokala iron ore projects mark significant milestones towards commercialization. Investors should stay tuned for further updates on the road design and exploratory drilling results, as these developments will provide more insights into the project's feasibility and potential impact on the company's stock.