AKORA Resources Reports Promising High-Grade Iron Ore Discoveries at Bekisopa
AKO (AKO) Share Update November 2024 Monday 25th
AKORA Resources Unveils High-Grade Iron Ore Discoveries at Bekisopa
AKORA Resources Limited (ASX: AKO) has announced significant high-grade iron ore discoveries from its 2024 drilling campaign at the Bekisopa Project in Madagascar, marking a pivotal moment for the company's flagship project.
Instant Summary:
- 58 out of 61 drill holes intercepted iron mineralisation.
- High-grade iron ore intercepts include 9.4m at 67% Fe and 9.0m at 66% Fe.
- Potential to expand the Indicated DSO Resource in Bekisopa's southern zone.
- New Mineral Resource Estimate expected in early Q1 2025.
Drilling Campaign Success
AKORA Resources has completed its fifth drilling campaign at the Bekisopa Iron Ore Project in Madagascar, with 58 out of 61 shallow drill holes intercepting iron mineralisation. This campaign focused on the southern zone of the project, which spans a 6km strike length.
The drilling results revealed several high-grade direct shipping ore (DSO) intercepts, including 9.4 meters at 67% iron from drill hole BEKD226 and 9.0 meters at 66% iron from drill hole BEKD283. These results significantly enhance the potential to expand the project's Indicated DSO Resource.
Resource Expansion and Future Plans
The promising results from the 2024 drilling campaign are expected to contribute to a new Mineral Resource Estimate, scheduled for release in early Q1 2025. This estimate will be integral to the upcoming Pre-Feasibility Study (PFS), also due in Q1 2025, which aims to assess the viability of a low-capital DSO start-up operation.
AKORA's CEO, Mr. Paul Bibby, emphasized the importance of these findings, stating that the additional DSO tonnes could extend the mine life, improve financial outcomes, and enhance cash flow for the project.
Geological Insights and Drilling Details
The Bekisopa project is characterized by high-grade iron ore mineralisation running from surface to a depth of 15 meters. The mineralisation is predominantly massive magnetite and magnetite-bearing gneiss, ideal for shallow open-pit mining.
The 2024 drilling campaign involved 61 drill holes at a 50 by 50-meter spacing, with the majority intersecting significant iron mineralisation. The results suggest a consistent distribution of high-grade ore across the southern zone, supporting the potential for increased resource tonnage.
The discovery of high-grade iron ore at Bekisopa is likely to positively impact AKORA Resources' stock, as it enhances the project's potential and economic viability. The anticipated increase in resource tonnage and the upcoming Mineral Resource Estimate could attract investor interest and boost market confidence.
Investor Reaction:
Analysts are likely to view the drilling results favorably, given the high-grade nature of the discoveries. The potential for expanded resources and improved project economics may lead to positive investor sentiment and increased stock activity.
Conclusion:
Investors should keep an eye on AKORA Resources as the company progresses towards its new Mineral Resource Estimate and Pre-Feasibility Study in early 2025. The high-grade discoveries at Bekisopa could significantly enhance the project's value and AKORA's market position.