Page 38 - pd290-Feb21-mag-web

IPos

Akora’s Malagasy adventure

The high-grade magnetite is
appropriate for a high-grade
lump DSO product

here have been few windows for a com- and magnetic surveys. evidence for a 100-200mt resource.
Tpany like Akora Resources Ltd to float “There’s extensive outcropping, high- “The focus will be on drilling to under-
over the last decade, but such were the grade material grading 66-67% iron with stand the potential and with confirmation of
market conditions in the second half of 2020 low impurities.” that, what the grade is,” Bibby said. “Then
that the African-focused iron ore junior was Akora drilled 10 holes for 1,000m prior to we will be in a better position to understand
not only able to get its IPO away but also listing with assay results expected by the the way forward in terms of the project.”
close early oversubscribed. beginning of this month. Bibby said the pro- Even if mineralisation does not extend
Flat iron ore prices and negative sen- gramme would begin the process of testing significantly further, Bibby is confident Ako-
timent towards higher-risk jurisdictions the depth extent of the Bekisopa minerali- ra has an economic project on its hands.
meant seed investors have been required sation. Testwork has shown the Bekisopa ore as
to show patience in Akora, a company first “There is no doubt there is 10-20mt of capable of producing a high-grade coarse
created by John Madden in 2012. However, high-grade outcrop along the 5km strike, lump DSO product, reducing capex and
a resurgent spot price and blossoming of but that programme was designed to con- opex requirements in comparison to most
market enthusiasm for juniors meant the firm the outcrop is extending below the sur- magnetite projects.
second half of 2020 presented a rare op- face,” he said. “It is readily able to be trucked, shovelled,
portunity. “We want to go beyond that and prove up crushed and screened to produce a high-
“The IPO has been well-supported and plus-100mt of material. Depending how the grade lump ore,” he said. “So, if there is only
closed oversubscribed and we had to scale drilling goes it could be even bigger, we just 20mt it could do 8-10 years at 2 mtpa which
back investors, which shows the wonderful don’t know what’s below the outcrop.” would be a terrific project at today’s prices
interest in the project,” Akora managing di- Finding an answer is the goal over the with very good margins.”
rector Paul Bibby told Paydirt. next 15 months with Akora aiming to find Bekisopa is only 70km from the national
It has been more than a decade since a highway which connects to the port town
junior arrived on the ASX with an African of Toliara, currently the focus of shipping
iron ore story but Akora appears equipped plans for ASX-listed Base Resources Ltd’s
to begin life as a listed company strongly mineral sands project in south-west Mada-
thanks to a portfolio skewed towards early gascar.
production scenarios. “Toliara is the potential port for Bekisopa,”
Akora’s main focus is the Bekisopa iron Bibby said. “If we identify several hundred
ore project in central-south Madagascar. million tonnes of material, you’d look at a
Acquired in 2014, the project has received railway or something else to justify the ex-
extensive historical work on its outcropping penditure, lower costs, etc.
magnetite mineralisation. “We haven’t done that sort of logistics
“We’ve just been waiting for the opportu- work because we really want to understand
nity and for the market and interest to pick the magnitude of the opportunity. We will
up,” Bibby said. “We raised $2.5 million put some money aside for those sorts of
privately last year which put us in a strong studies.”
position to prepare for listing but also to un- – Dominic Piper
dertake some preliminary geological work Akora has at least 5km strike of outcropping
magnetite at Bekisopa

Page 38 FeBRUaRY 2021 aUSTRaLIa’S PaYDIRT