Funding Tight as Akora Pushes Bekisopa Project Toward Critical Pre-Feasibility Milestone

Project Progress and Technical Advances

Akora Resources Ltd (ASX: AKO) has delivered a robust quarterly update on its flagship Bekisopa Iron Ore Project in Madagascar, underscoring significant strides in exploration, technical studies, and stakeholder engagement. The company is advancing plans to produce up to 2 million tonnes per annum of a 60% Fe average grade direct shipping ore (DSO), targeting traditional Blast Furnace-Basic Oxygen Furnace (BF-BOF) steelmakers initially, with potential to upgrade to +68% Fe concentrate for greener steel production via Direct Reduced Iron-Electric Arc Furnace (DRI-EAF) technology.

During the quarter, mineral processing trials by Wardell Armstrong International confirmed encouraging product splits: 71% fines averaging 61% Fe and 29% lump averaging 65% Fe from a 62% Fe feed grade. These proportions support the project's economic viability and align with market demands for high-quality iron ore products.

Mining Feasibility and Cost Efficiency

Geotechnical drilling completed across the planned DSO pit locations revealed that the weathered rock zones containing the ore are amenable to free digging or ripping without the need for costly drill and blast operations. This finding is pivotal as it implies lower mining costs and a streamlined permitting process. Complementary hydrological studies demonstrated adequate groundwater availability and recharge capacity, essential for sustainable site operations and environmental compliance.

Drilling Success and Resource Expansion

The fifth drilling campaign, completed in June 2024, intercepted DSO-grade iron mineralisation in 58 out of 61 shallow drill holes, with several intercepts exceeding 64% Fe from surface to depths of up to 12 meters. This consistency across the 6km strike length of the southern zone bodes well for resource expansion and supports the upcoming update to the Mineral Resource Estimate, which will feed into the Pre-Feasibility Study (PFS) due in early 2025.

Infrastructure and Logistics

Engineering and survey work for the critical Bekisopa to Satrokala road route has been completed, revealing a shorter-than-anticipated route and a feasible river crossing design that could reduce capital expenditure. The road infrastructure is vital for transporting ore to the national highway and onward to export facilities, underpinning the project's commercial viability.

Government Support and Corporate Outlook

AKO’s management engaged directly with Madagascar’s Minister of Mines, Dr Olivier Herindrainy Rakotomalala, who reaffirmed strong governmental support for the Bekisopa project. Discussions focused on advancing the project towards a Final Investment Decision, including permitting and shipping trial samples for steelmaker validation. This political backing enhances the project's prospects in a jurisdiction increasingly open to mining investment.

Financially, Akora ended the quarter with approximately A$0.65 million in cash, supplemented by a recent placement raising A$0.6 million to accelerate feasibility studies and potential tenement acquisitions. While funding remains tight, the company is actively pursuing equity raising to sustain operations and development momentum.

With the PFS on track for completion in Q1 2025, Akora is positioning Bekisopa as a strategically important high-grade iron ore source aligned with the steel industry's decarbonisation goals, potentially attracting premium pricing and long-term partnerships.