AKORA Resources (ASX: AKO) has identified several potential cost-saving opportunities as it moves towards finalising a pre-feasibility study (PFS) for its Bekisopa direct shipping ore (DSO) iron project in Madagascar.

The PFS is identifying the best path forward for the stage 1 DSO operation at Bekisopa, which will produce up to 2 million tonnes per annum of a high-grade (more than 60% iron) lump and fines product for use by blast furnace steelmakers.

Work undertaken by Wardell Armstrong International for the PFS has also identified potential mine development cost savings at the project.

Site activities progressing

Managing director Paul Bibby said that site activities at both Bekisopa and the nearby Satrokala exploration project are progressing well, with several positive signs emerging from work aimed at increasing the tonnage of DSO at Bekisopa and completing the necessary PFS activities.

“The initial results from the geotechnical and hydro drilling programs are very encouraging and confirm straightforward mining operations at low cost,” Mr Bibby said.

“The Bekisopa PFS continues to be on track, with progress being made in the detailed environmental and social assessment and the port options study, all of which are helping to advance the project towards commercialisation.”

Positive observations

Indications from geotechnical studies suggest that drill and blast will not be required for the DSO weathered zone mining, as the material is of low competency and amenable to ripping—simplifying the mining process and potentially reducing costs.

In addition, hydrogeological drilling has identified subsurface water at depths of approximately 30 metres, with supportive levels of water recharge.

This suggests it may provide a valuable water source for the DSO operation, while creating minimal impact on pit design and mining operations.

Engineering work

Initial metallurgical testing has found that the DSO rock hardness has the lowest rating, with a very low abrasion index that reduces potential crushing power, further lowering operating and maintenance costs.

PFS activities related to engineering for the Bekisopa to Satrokala road are substantially complete, while infill drilling assay results are nearing release.

“All results reported favourably impact mining activities and operating costs, with no surprises identified,” Mr Bibby said.

“The PFS is a key project milestone and remains on track for completion in early 2025.”