Akora Resources : WLIMS & DTT results confirm product grades of 68-70%Fe

For personal use only

ASX Release

13 January 2022

AKORA Bekisopa Central Zone drill hole BEKD04 assays confirm

high grades near surface and at depths to 100m

68 to 70%Fe product grades considered ideal feed for Direct Reduced Iron pellets, key to a Green Steel future

Highlights:

• 70.2% average iron concentrate grade from Davis Tube Tests (DTT) along drill hole BEKD04 from surface to 38.1m downhole at a relatively coarse 75 microns sizing
• 69.9%Fe average iron grade from DTT along drill hole BEKD04 from 72.6 to 100.49m downhole, hole ended in iron mineralisation
• 68 to 70%Fe product grade, BEKD04 and across the Central Zone, suitable for Direct Reduce Iron (DRI) pellets crucial for the future decarbonisation of the steel industry and Green Steel production
• 66.1% average iron fines grade from magnetic separation process trials on composites along drill hole BEKD04 from surface to 38.1m downhole, at a -2mm crush size

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Introduction

AKORA Resources ("AKORA" or "the Company") (ASX Code: AKO) is pleased to provide shareholders with further processing trial reporting on Bekisopa drill hole BEKD04 in the Central Zone within Bekisopa tenement 10430. Drill hole BEKD04 was extensively evaluated using magnetic separation techniques to better understand the potential to achieve high-grade products along this particular drill hole and as that may extend across the Central Zone.

The drilling details for this drill hole are covered in ASX Announcements of 13 April 2021 and 11 January 2022. Preliminary processing trial results for BEKD04 from surface to 38.1m showed this interval readily upgraded at a 2mm crush to 66.1%Fe and at a 75-micron sizing to an outstanding 70.2%Fe using magnetic separation, both with substantial reduction in impurities.

BEKD04 Assay results

Assay results for BEKD04 shows an average of 61.4%Fe from surface to 4.67m, this drill hole finished in mineralisation at 100.49m downhole with the last 5m averaging 52.1%Fe, see Figure 1.

Figure 1

Central Zone cross section along latitude 7610800 incorporating Bekisopa drill hole BEKD04. BEKD04 shows high and lower grades along its 100.49m length all upgradable using magnetic separation.

Figure 2 below shows drill core sections from drill hole BEKD04, near surface and at depth to 100.49m downhole. These drill core photographs/composites are in approximately 6m groupings and for each composite interval the drill core photos are accompanied by a description of the iron mineralisation type, the average composites iron head grade and the resultant upgraded wet Low Intensity Magnetic Separation (wLIMS) and DTT product grade. For these wLIMS process trials the composites were crushed to 2mm and had an average of 80% passing 1.3mm while DTT product grade trials were performed on assay pulps samples prepared to 75-microns with 80% passing 62-microns, a relatively coarse DTT sizing.

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Composite 2, 5.5 to 11.1m, comprising Massive iron mineralisation.

Average head grade 43.9%Fe

Average wLIMS fines

grade 69.6%Fe

Average DTT grade

70.6%Fe

BEKD04

94.83m to 100.49m, comprising Massive iron mineralisation.

Average head grade 52.1%Fe.

Average wLIMS

fines grade

TBC

Average DTT grade

69.5%

Figure 2

BEKD04 drill hole within the Central Zone of the Bekisopa strike length showing the near surface composite 2, average head grade 43.9%Fe upgraded to 69.6%Fe by wLIMS and 70.6%Fe by DTT.

BEKD04 drill core from 94.83m to 100.49m at average head grade of 52.1%Fe upgraded to 69.5%Fe using

DTT magnetic separation.

wLIMS and DTT process trials on Bekisopa Central Zone BEKD04

In conjunction with the assaying, AKORA also conducted wLIMS and DTT process trials on continuous drill core composites and intervals from surface to 38 metres downhole on BEKD04. The objective of these processing trials being to better understand the upgradability of the iron mineralisation near surface to 38.1m and from 72.6m to 100.49m downhole. These results could potentially be similar across the entire Central Zone.

The recent wLIMS and DTT trials were on composites of adjacent drill core intervals from Bekisopa 2020 drill hole BEKD04, which is centrally located within the Central Zone. Each wLIMS composite included 6 to 8 adjoining samples, covering around 6m in length, typical height of a mining bench, full details reported in ASX Announcements 11 January 2022.

The full wLIMS and DTT process trials are summarised in Table 1 and 2 and show that an average iron head grade of 35.1%Fe readily upgrades to 66.1%Fe and 70.2%Fe respectively for iron mineralisation from surface to 38.1m downhole. A feature of the Bekisopa iron mineralization is its ability to be readily upgraded using conventional magnetic separation processes. wLIMS and DTT are both versions applying magnetic separation techniques and are chosen dependent on the feed sizing to be evaluated.

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		Head Grade
BEKD04	Composite	Fe	Silica	Alumina
Composite	Interval (m)	%	%	%
1	0 - 5.5	60.1	7.9	4.1
2	5.5 - 11.1	43.9	17.3	2.9
3	11.1 - 19.4	37.4	27.5	3.1
4	19.4 - 25.7	26.4	31.5	2.9
5	25.7 - 31.3	25.5	22.2	2.3
6	31.3 - 38.1	24.2	32.3	3.5
Averages		35.1	23.1	3.1

Table 1

wLIMS Iron Fines Grade

Fe	%	Silica %	Alumina
			%
69.7		0.8	1.2
69.6		1.2	0.4
69.2		1.7	0.4
63.7		5.8	0.3
61.9		4.3	0.2
62.2		5.4	1.0
66.1	3.2	0.6

use

Details of the wLIMS iron fines grade from the six composites from Bekisopa drill hole BEKD04 which has shown an average iron head grade, of 35.1%Fe, being readily upgraded at a 2mm crush and magnetic separation to produce an average 66.1%Fe high-grade fines product and average iron recovery of 90.2%.

		Head Grade
BEKD04	Composite	Fe	Silica		Alumina
Composite	Interval (m)	%	%		%
1	0 - 5.5	60.1	7.9		4.1
2	5.5 - 11.1	43.9	17.3		2.9
3	11.1 - 19.4	37.4	27.5		3.1
4	19.4 - 25.7	26.4	31.5		2.9
5	25.7 - 31.3	25.5	22.2		2.3
6	31.3 - 38.1	24.2	32.3		3.5
Averages		35.1	23.1		3.1
				Table 2

Davis Tube Test Grade

Fe	%	Silica %	Alumina
			%
70.1		0.15	0.54
70.0		0.30	0.24
69.6		0.20	0.20
71.1		0.34	0.01
70.8		0.18	0.01
69.8		0.69	0.45
70.2	0.31	0.24

For personal

Details of the DTT iron grade from the six composites from Bekisopa drill hole BEKD04 which has shown an average iron head grade, of 35.1%Fe, being readily upgraded using the DTT to an average iron grade of 70.2%Fe with an average silica grade of 0.31% and average alumina grade of 0.24%.

Magnetic Susceptibility Measurements on drill core from BEKD04

At site the drill core logging included magnetic susceptibility measurements (MSMs) down the entire length of each drillhole at approximately 25cm intervals. This MSM was conducted to confirm with the visual observations and drill core photographs which intervals would be prepared for assaying. MSM is a handheld device that records the magnetic intensity along a drill core interval, different iron minerals have different magnetic intensity. The higher the MSM reading generally the higher iron head grade and there looks to be a good correlation between the MSM core logging to the assay results and now the wLIMS and DTT product grade results. Figure 3 and 4 below shows the relationship between the MSM's, the assay results and the wLIMS and DTT process trial results completed on drill hole BEKD04.

The MSM results, the black bars on the right side of the drill core image, correlate very well with the assaying results and as expected with the wLIMS and DTT upgraded iron results.

Magnetic susceptibility measurement (MSMs) along a drill core intercept is a strong indication of the presence of iron - the higher the reading the higher the iron content. Bekisopa drill hole BEKD04 ended in iron mineralisation at 100.49m down hole and both the assay results and the MSM readings at depth are relatively high see the end of drill hole results in Figures 3 and

4. In all reasonable probability we would expect the wLIMS and DTT results, at a 2mm crush size and a 75-micron sizing, to achieve comparable very high-grade iron product grades. The

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DTT results on drill core from 72.6 to 100.49m downhole on BEKD04 averaged 69.9%Fe, showing good correlation between the MSM, assay and processing trial results.

LHS: Assay Grade

RHS: Magnetic Susceptibility (black bars)

RHS: wLIMS Grade (broad colored bars)

Figure 3

BEKD04 drill hole within the Central Zone of the Bekisopa project showing upgrading of iron

mineralisation using wLIMS, after a coarse 2mm crush, achieved excellent iron upgrading along all six continuous near surface composites, averaging 66.1%Fe. It is considered in all reasonable probability that the high assay and magnetic susceptibility results at depth to 100.49m would achieve similar high wLIMS fines grades.

LHS: Assay Grade

RHS: Magnetic Susceptibility (black bars)

RHS: wLIMS Grade (broad coloured bars)

DTT average results;

70.2%Fe

69.2%Fe

Figure 4

BEKD04 drill hole within the Central Zone of the Bekisopa project showing upgrading of iron

mineralisation using DTT at a relatively coarse 75-microns, achieved excellent iron upgrading along all

six continuous near surface composites, averaging 70.2%Fe.

DTT conducted on the last 28m of BEKD04, from 72.6 to 100.5m downhole, delivered an average of

69.9%Fe with low impurities and at an excellent average mass yield of 32.7%.

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