Akora Resources: Promising Advances in Bekisopa Iron Ore PFS and Satrokala Exploration
AKO (AKO) Share Update October 2024 Wednesday 23rd
Akora Resources Advances Bekisopa Iron Ore Project with Promising PFS Results
Akora Resources (ASX: AKO) has released an update on its Pre-Feasibility Study (PFS) for the Bekisopa Iron Ore Project in Madagascar, highlighting significant progress and cost-saving potential, alongside exploratory drilling updates at Satrokala.
Instant Summary:
- Bekisopa PFS indicates no need for drill and blast in weathered zones, reducing costs.
- Hydrogeological findings suggest a sustainable water source at Bekisopa.
- Metallurgical tests show low rock hardness and abrasion, lowering operational costs.
- Road engineering from Bekisopa to Satrokala substantially complete.
- Satrokala exploratory drilling results expected by end of November 2024.
Bekisopa Iron Ore PFS Progress
Akora Resources has made significant strides in its Pre-Feasibility Study (PFS) for the Bekisopa Iron Ore Project. The geotechnical drilling results reveal that the weathered zones of the Direct Shipping Ore (DSO) do not require drill and blast operations, which simplifies the mining process and reduces associated costs. This finding is crucial as it suggests a more cost-effective mining operation.
The hydrogeological drilling has identified subsurface water at depths of approximately 30 meters, with adequate recharge rates. This discovery indicates a potential water source for the DSO operation, which can be utilized with minimal impact on pit design and mining activities.
Metallurgical Testing and Road Engineering
Metallurgical testing is ongoing, with preliminary results showing that the DSO rock has low hardness and a very low abrasion index. These characteristics are beneficial as they imply reduced crushing power requirements and lower maintenance costs for mining equipment.
Additionally, the road engineering from Bekisopa to Satrokala is nearly complete. The route has been mapped, including a planned crossing of the Zomandao River, which is expected to lower capital costs for road construction.
Satrokala Exploratory Drilling
Exploratory drilling at Satrokala has been completed, and samples have been sent for analysis. Results are anticipated by the end of November 2024, which will provide further insights into the mineral potential of the area.
The positive findings from the Bekisopa PFS are likely to boost investor confidence in Akora Resources. The cost-saving measures identified through the PFS, such as the elimination of drill and blast operations and the availability of a sustainable water source, are significant advantages. These developments could enhance the project's economic viability and potentially increase the company's stock value.
Investor Reaction:
Analysts are likely to view the PFS results and exploratory drilling updates positively, as they suggest a promising outlook for Akora's projects. The reduced operational costs and progress in infrastructure development are expected to be well-received by investors.
Conclusion:
Investors should keep a close watch on Akora Resources as the company progresses towards completing its PFS and explores further opportunities at Satrokala. The upcoming release of exploratory drilling results will be pivotal in shaping future investment decisions.