Akora Resources (AKO.AX) has released a maiden resource estimate on its Bekisopa iron ore project at the end of the first quarter. The Northern Zone contains 43.3 million tonnes at 33.3% Fe in the inferred resource category while the Central zone hosts 41.2 million tonnes at 30% Fe. Test work has indicated the north zone mineralization can be upgraded to a concentrate grading 68.2% Fe (which would currently yield a premium of approximately $30/t over the Benchmark iron ore concentrate price which has a grade of 62%). The mineralization in the Central Zone can be upgraded to a concentrate with an average grade of 67% Fe.
The combined resource of just over 84 million tonnes at an average grade of just over 31% Fe in the Northern and Central Zone was a good start, but Akora expected the total resource to double from here as it has provided an exploration target of 50-100 million tonnes in the Southern Zone. The grade was expected to be quite similar to the Northern and Central Zone but Akora is providing a wide grade guidance of 25-40% Fe.
The Southern Zone resource was released just a few weeks after the Northern and Central Zone, and surpassed the expectations with 110.2 million tonnes at 37.8%: the tonnage exceeded the guidance while the average grade came in at the higher end of the guidance. The total tonnage at the Bekisopa iron ore project now stands at just under 195 million tonnes at 38.7% (DTR, the head grade is around 32% Fe) which should result in a concentrate with an average grade of 67.6%. All deleterious elements are below the benchmark requirements except for the sulphur content of 0.237% which is quite a bit higher than the 0.02% used for the 62%Fe benchmark price. The company is aware of the high sulphur content and is trying to work on reducing the average level throughout the mine life.
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