Bekisopa Project Faces Critical Assay and Licence Hurdles Despite Government Backing

Exploration Progress at Bekisopa

AKORA Resources Limited has marked a notable milestone in its development of the Bekisopa high-grade iron ore project in Madagascar by successfully completing a trenching exploration program. The program involved excavating 339 metres across eight trenches, targeting surface iron mineralisation outside the current JORC resource boundaries. Geological mapping and magnetic susceptibility readings confirmed the presence of magnetite-hematite lithologies suitable for direct shipping ore (DSO), reinforcing the project's potential.

While assay results from the 365 samples collected are pending, the visual identification of mineralisation and updated GPS coordinates provide a solid foundation for refining the geological model and planning future exploration and mining activities.

Regulatory Advances and Government Support

In a significant regulatory development, AKORA submitted its mining permit application for Bekisopa under Madagascar’s new international-level mining code, which has reinvigorated the country’s mining sector after years of stagnation. The application is the first of its kind under the new framework, reflecting AKORA’s compliance with stringent prerequisites including environmental authorisations, JORC-compliant resources, and a clear development plan.

Managing Director Peter Bird’s recent meetings with key government figures, including the High Advisor for Strategic Resources and the Minister of Mines, have underscored the project’s strategic importance. The new administration’s endorsement signals a more supportive environment for mining projects, potentially accelerating the path to production.

Development Strategy and Market Position

AKORA’s staged development approach aims first to produce approximately 2 million tonnes per annum of 61.6% Fe grade direct shipping ore for traditional blast furnace steelmakers. Subsequently, the company plans to upgrade the ore to a premium +67% Fe concentrate suitable for the emerging green steel market, which demands low-carbon emission inputs compatible with electric arc furnace technology.

The Pre-Feasibility Study completed earlier in 2025 confirmed robust economics for the initial stage, with low capital and operating costs. The project’s proximity to the port of Toliara facilitates export logistics, enhancing its commercial appeal.

Financial Position and Outlook

At the end of the quarter, AKORA held cash reserves of approximately $1.1 million, having spent $397,000 on exploration activities. The company reported no production or development expenditures during the period, consistent with its current focus on advancing regulatory approvals and exploration milestones.

Iron ore prices remained resilient, closing the quarter at US$106 per tonne, supported by steady demand and disciplined supply. This market backdrop bodes well for AKORA’s future financing and development prospects.