Akora Resources Ltd (ASX: AKO) Expands Bekisopa Iron Ore Resource, Strengthens PFS Case

Akora Resources Ltd (ASX: AKO) has made a significant leap forward in developing its Bekisopa Iron Ore Project in Madagascar, announcing a 35% increase in total iron ore resources and a 27% boost in Indicated Direct Shipping Ore (DSO) tonnes. The latest Mineral Resource Estimate (MRE) update reinforces Bekisopa’s potential as a low-cost, high-grade iron ore operation, setting the stage for an upcoming Pre-Feasibility Study (PFS) due in March 2025.

Key Highlights from the MRE Update:

✔ Total Indicated and Inferred Resource: 10.6 million tonnes (Mt) at 54.8% Fe, up 35% from the previous estimate.
✔ Indicated DSO Resource: Increased 27% to 6.6Mt at 59.7% Fe, up from 5.2Mt in the previous MRE.
✔ Intermediate Grade Resource: 2.1Mt at 39.9% Fe, with test work showing it can be upgraded to saleable grades.
✔ Overall DSO & Intermediate Resource: A 93% increase compared to the 2023 Scoping Study, now sitting at 8.5Mt at 55.4% Fe.

What This Means for Akora Resources

The increase in Indicated Resources is a crucial milestone, as it strengthens the upcoming PFS, offering greater certainty for investors and stakeholders. Indicated Resources are deemed more reliable for economic and feasibility studies, meaning Akora can present a more robust case for commercial mining.

Managing Director and CEO Paul Bibby emphasized the importance of the MRE update:
 

"The increase in Bekisopa’s Mineral Resource Estimate will extend the start-up DSO mine life and improve project economics. Importantly, the 8.5 million tonnes of Indicated DSO Resource will be a cornerstone of our Pre-Feasibility Study."

The company has only drilled along half of the known 6km strike length, suggesting that further resource growth is likely with additional exploration.

Why Bekisopa Matters

Bekisopa’s iron ore is high-grade and low impurity, making it an ideal feedstock for Blast Furnace-Basic Oxygen Furnace (BF-BOF) steelmakers. The company is advancing a two-stage development strategy:

Stage 1: A Direct Shipping Ore (DSO) operation, producing ~60% Fe lump and fines, generating early cash flow.
Stage 2: Development of a Green Steel Zone, where low-impurity 67%+ Fe iron concentrate can be produced to support low-carbon steelmaking.

The market is increasingly favoring high-grade iron ore, as it reduces carbon emissions in steel production. With global steelmakers pushing for greener production processes, Bekisopa’s high-purity product could command a premium price.

Strategic Positioning and Future Outlook

Akora Resources is rapidly de-risking Bekisopa through methodical exploration and feasibility work. The Pre-Feasibility Study in March 2025 is expected to provide a clearer picture of the project’s economics, with a detailed mine plan, production schedule, and financial modeling.

With an expanding resource base, a high-grade product, and a favorable market outlook, Akora is positioning itself as a serious player in the iron ore sector.

What’s Next for Akora Resources?

🔹 Further resource expansion potential through additional drilling along strike.
🔹 Pre-Feasibility Study (March 2025) to outline project economics.
🔹 Advancing towards production, targeting a scalable Direct Shipping Ore operation.

For investors looking for high-grade iron ore exposure with strong growth potential, Akora Resources (ASX: AKO) is a company to watch.

Stock Price Movement:

As of 2:19 PM AEDT on February 25, 2025, Akora Resources Ltd (ASX: AKO) shares were trading at $0.14, up 3.70% for the day, with a market cap of $18.70 million. The stock has gained 21.74% over the past month and 40% year-to-date, signaling renewed investor confidence following this latest resource update.