Iron Ore Potential in Madagascar

Akora Resources' Flagship Bekisopa Project

Akora Resources (ASX: AKO) is an iron ore exploration company focused on several properties in Madagascar. Their flagship project is the Bekisopa iron ore deposit located in south-central Madagascar, which they have been actively exploring over the past 18 months. Based on drilling results so far, Bekisopa appears to have the potential to be developed into a producing iron ore mine. Here are some key takeaways for investors on this emerging company and project:

Large Iron Ore Deposit Identified at Bekisopa

• 6km strike length of outcropping iron ore identified at surface grades up to 67% Fe
• Over 6,000 meters of drilling conducted in 2021, hitting iron mineralization in most holes
• Iron formation appears continuous from surface to 200m depth based on drilling
• Thickness varies from 70-100m true thickness
• Total strike length only 30% drilled to date, potential for 500Mt resource along full strike

DSO Potential for Low-Capex Startup Operation

• High-grade direct shipping ore (DSO) at surface in weathered zone, 64-68% Fe
• DSO potential for both lump and fines products
• Could support 2-3Mtpa operation for first 8-10 years with minimal capex
• Low strip ratio expected for open pit mining of outcrop and oxidized zones

Processing Shows Ability to Upgrade Lower-Grade Material

• Davis tube tests show the ability to upgrade to 70% Fe concentrates at finer grind
• Wet LIMS at 2mm crush upgrades lower grade fresh rock to 65%+ Fe fines
• Metallurgical test work is ongoing but initial results are promising

Straightforward Logistics to Port

• Located 200km from the port at Toliara via National Highway 7
• Initial trucking of DSO fines and lump product likely for startup
• All-weather road construction would provide year-round land access

Clear Path to Maiden Resource and PEA Study

• Maiden JORC resource expected in March 2022, potentially 150-200Mt
• PEA study planned to follow, examining low-capex trucking options
• Further exploration drilling could expand deposit along a full 6km strike

Experienced Management Team

• Technical team with iron ore, mining and mineral processing expertise
• Leadership has a track record of developing projects in Madagascar
• Strong in-country relationships and presence established

Akora Resources offers exposure to a large potential iron ore deposit in an unfamiliar mining jurisdiction in Madagascar. Initial results indicate potential for an open-pit mining operation, with high-grade DSO potentially providing a low-capex path to production. The experienced management team has systematic exploration and metallurgical programs underway to advance the project. Pending a positive PEA study, Bekisopa could represent a compelling iron ore development opportunity in what we hope is a strengthening iron ore market. Investors should only keep an eye on this emerging company for now as they advance their flagship project in the year ahead. Lots to achieve and lots to prove.

5 key Takeaways for Investors

1. Large identified iron ore deposit with potential for further expansion along strike. The 6km strike length outlined so far is substantial, with the potential for more.
2. Initial metallurgy looks very promising, with the ability to produce high-grade concentrate. This reduces project risk.
3. Focus on low-capex DSO startup could generate cash flow to fund expansion. Trucking DSO fines and lump provides simpler early operations.
4. Experienced management team with a track record in the country. The technical team knows how to operate successfully in Madagascar.
5. Supportive mining jurisdiction. The Madagascar government has welcomed mining investment and development in recent years. Established infrastructure nearby is also a plus.

While still an early-stage company and project, Akora has taken steps to derisk Bekisopa and outline its potential. The large size of the deposit, favorable metallurgy and focus on simple early operations reduce the execution risk compared to more complex projects. Madagascar offers a promising mining jurisdiction with government support. The experienced team gives additional confidence they can navigate the challenges. Cautious investors may want to keep an eye on this emerging iron ore developer but don't expect much growth until they deliver more on the economics and the ability to do business in the country.