TIDMKOD
RNS Number : 6075F
Kodal Minerals PLC
19 May 2017
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR")
Kodal Minerals Plc / Index: AIM / Epic: KOD / Sector: Mining
19 May 2017
Kodal Minerals plc ('Kodal Minerals' or 'the Company')
Wide, High-Grade Lithium Mineralisation at Ngoualana
Prospect
within Bougouni Lithium Project, Mali
Kodal Minerals plc, the mineral exploration and development
company focussed on West Africa, is pleased to announce wide,
high-grade lithium mineralised drill intersections from the
'Ngoualana Prospect', located at the Company's Bougouni lithium
project in Southern Mali ("Bougouni" or the "Bougouni Project"). In
addition, the Company is reporting final drill results for the
first-pass drilling at the Orchard Prospect at Bougouni that has
also returned significant lithium intersections.
To view a version of the announcement with maps showing the
active exploration prospects, drill hole locations and pegmatite
outcrops, click here
http://www.rns-pdf.londonstockexchange.com/rns/6075F_-2017-5-18.pdf.
Highlights
-- First batch of assay results received for the drilling at the
Ngoualana prospect confirming wide, high-grade lithium
mineralisation with individual assay results up to 3.12% Li(2) O
and intersections including:
o 47m at 1.51% Li(2) O from 32m;
o 18m at 2.06% Li(2) O from 140m;
o 21m at 1.72% Li(2) O from 11m; and
o 18m at 1.69% Li(2) O from 37m
-- Ngoualana drilling consisted of 26 drill holes for 4,090m
with assay results for seven drill holes returned to date
-- Ngoualana remains open along strike and at depth and further
drilling is planned to continue to target the eastern extension of
the pegmatite unit
-- Orchard prospect drilling consisted of four drill holes for
544m and results confirm high-grade lithium pegmatites with
individual assay results of up to 2.57% Li(2) O and with multiple
intersections reported for each drill hole including:
o 8m at 1.68% Li(2) O from 38m;
o 8m at 1.73% Li(2) O from 78m; and
o 6m at 1.61%Li(2) O from 55m
-- The drill rig is currently completing the follow-up drilling
at the Sogola-Baoule prospect prior to returning to Ngoualana to
begin further extension and infill drilling
Bernard Aylward, CEO of Kodal Minerals, said: "The consistently
high grade results delivered from exploration across our Bougouni
Lithium Project have been further underpinned by the wide,
high-grade lithium mineralised drill intersections reported from
Ngoualana.
"Our drilling programme was designed to target strike and depth
extensions of the pegmatite vein, and we now have confirmation of a
continuous unit extending for over 500m of strike and greater than
200m in depth, with the prospect remaining open in all directions.
The wide, high-grade nature of the intersections is particularly
encouraging for the potential to develop this prospect further.
"The drilling programme that commenced in March 2017 targeted
three exploration prospects - Sogola-Baoule, Boumou and Orchard.
With these promising results at the Orchard prospect announced
today, we are extremely pleased to report that each prospect has
demonstrated high-grade lithium mineralisation that justifies
further drill testing to determine potential to support development
at Ngoualana. The Bougouni Lithium project is demonstrating very
high prospectivity with numerous exploration targets and
mineralised pegmatite veins that support the strategy of developing
a mining hub with multiple sources supporting a main operation at
Ngoualana.
"Kodal is continuing the rapid delineation and assessment of the
Ngoualana prospect and is moving to define a maiden JORC compliant
mineral resource estimate as quickly as possible. Kodal is well
funded to undertake an aggressive exploration campaign with the
investment from Suay Chin International Pte Ltd, which remains
extremely supportive of this focus on Bougouni."
Further Information
Bougouni Lithium Project
The Bougouni Project consists of two concessions, the
Kolassokoro and Madina concessions, which cover a contiguous area
of 500km(2) . The project area is located approximately 180km south
of Bamako, the capital of Mali, with excellent access to the
project via sealed road from Bamako. Kodal has been exploring the
concessions since September 2016 and has completed a series of
geological reconnaissance, rock chip sampling, geophysical review,
trench sampling and reverse circulation ("RC") drilling. The
exploration activities continue to enhance the project, with
numerous exploration targets developed and drill results confirming
high-grade mineralisation.
Ngoualana Prospect
Drilling at the Ngoualana prospect targeted the strike and depth
extensions to the high-grade mineralisation up to 28m at 1.85%
Li(2) O from 72m that was discovered in the first RC drilling
programme completed in December 2016, with results announced on 8
February 2017.
The second phase of drilling completed at Ngoualana consists of
26 RC drill holes for 4,090m completed. Drilling has tested a
strike length of over 500m, and field evidence indicates extensions
to the zone with outcrop and float material located to the east of
the drilling, and outcropping veins mapped to the west of the
drilling. The prospect remains open at depth, with drilling having
tested to greater than 225 vertical metres.
The Ngoualana prospect consists of one wide main vein that is
continuous throughout the prospect, and multiple parallel and
subsidiary pegmatite veins. Drilling is continuing to intersect
pegmatite veins that have no outcropping evidence and the potential
exists for additional veins to be delineated. The pegmatite veins
are high-grade, with assays up to 3.12% Li(2) O returned, and
review of the assay results indicates consistent mineralisation
throughout the pegmatite veins. The coarse spodumene minerals
within the pegmatite observed in surface outcrop is confirmed in
drilling, and several intersections appear to have spodumene
content in excess of 30%. The pegmatite veins are hosted in a
sequence of metasedimentary rocks with minor granodiorite
intrusions and quartz veins identified.
A programme of extensions of RC drilling is planned to test the
prospect, and a series of diamond drill holes will provide
additional geological control and samples for detailed
metallurgical testing.
Orchard Prospect
The Orchard prospect is located to the south of the Kolassokoro
concession. This drilling programme was designed to target previous
high-grade rock chip samples in excess of 2% Li(2) O and trench
results that returned up to 6m at 1.61% Li(2) 0. The Orchard
prospect is complex with multiple pegmatite veins mapped at surface
and in trenches.
The drilling programme consisted of four RC drill holes for 544m
completed, with all drill holes returning lithium mineralised
pegmatite intersections. Drilling has intersected multiple zones of
pegmatite mineralisation with zones up to 8m in width. Geological
logging has indicated spodumene rich pegmatite zones that confirm
the high-grade rock chip samples and the trenching results. The
prospect remains open along strike and at depth, and this
first-pass drilling programme will be assessed to determine the
next stage follow up drilling.
Summary Drill Intersections
Intersections reported in this announcement are tabled below,
with intersections calculated using a 1% Li(2) O lower cut-off,
maximum 2m internal dilution and only reporting intersections of
greater than 5m width. The intersections have been reviewed against
the logged geology to confirm zones and the duplicate sampling
reviewed to confirm reliability of information.
The 1% Li(2) O lower cut-off is a regarded as a high limit for
reporting and reflects the nature of the spodueme rich pegmatite
units and the consistency of the mineralised zones.
Hole
Hole Depth From To Thickness Li(2)
Prospect Id Northing Easting M m m m O %
----------- ---------- --------- -------- --------- ----- ---- ---------- ------
Orchard KLRC019 665792 1248989 138 38 46 8 1.68
78 86 8 1.73
---------------------- --------- -------- --------- ----- ---- ---------- ------
Orchard KLRC020 665842 1249005 162 95 100 5 1.42
147 152 5 1.25
---------------------- --------- -------- --------- ----- ---- ---------- ------
Orchard KLRC021 665744 1249033 124 55 61 6 1.61
----------- ---------- --------- -------- --------- ----- ---- ---------- ------
Ngoualana KLRC023 664158.5 1255426 72 49 58 9 1.89
----------- ---------- --------- -------- --------- ----- ---- ---------- ------
Ngoualana KLRC024 664202.3 1255403 54 11 32 21 1.72
40 50 10 1.68
---------------------- --------- -------- --------- ----- ---- ---------- ------
Ngoualana KLRC025* 664253.3 1255442 144 23 38 15 1.62
----------- ---------- --------- -------- --------- ----- ---- ---------- ------
Ngoualana KLRC026 664282.1 1255428 172 79 94 15 1.73
Includes 84 92 8 2.01
153 164 11 1.77
Includes 155 161 6 1.94
---------------------- --------- -------- --------- ----- ---- ---------- ------
Ngoualana KLRC027 664306.1 1255420 241 140 158 18 2.06
Includes 140 146 6 2.29
Includes 152 158 6 2.40
---------------------- --------- -------- --------- ----- ---- ---------- ------
Ngoualana KLRC028 664311 1255381 84 32 79 47 1.51
----------- ---------- --------- -------- --------- ----- ---- ---------- ------
Ngoualana KLRC029 664343 1255374 108 37 55 18 1.69
96 102 6 1.97
---------------------- --------- -------- --------- ----- ---- ---------- ------
Notes: Drill holes are reverse circulation drill holes completed
by specialist contractor Geodrill Limited. Drill holes have been
sampled on a 1m basis, with samples collected via a cyclone and
riffle splitter. Drill hole collars are surveyed using a hand-held
GPS with sub1-metre accuracy, coordinate system WGS84 - Zone 29N,
and all holes are survey down-hole for dip and azimuth on
approximately 30m intervals. All drill holes are geologically
logged, and sampling for analysis in based on geological
boundaries. 1m samples of pegmatite rock have been collected via
riffle splitter, and 3 metre composite samples of metasediment host
rock. Samples analysed by ALS Global. Assay results are reported as
Li% and converted to Li(2) O% by a factor of 2.153. Intersections
are reported using a 1%Li(2) O lower-cut-off, and allowing for a
maximum of 2m internal dilution. Drill hole KLRC025 terminated
early due to drift of drill hole and has not tested main zone.
A total of 811 samples are reported in this announcement, with
an assay range varying from a minimum of below detection limit
(0.005% Li) to a maximum result of 3.12%Li(2) O from Ngoualana and
maximum of 2.57% Li(2) O from Orchard. A total of 211 samples
exceed 1% Li(2) O in this report indicating the influence of the
drilling at Ngoualana. Samples are reported as Li% and converted to
Li(2) O% by multiplication of a factor of 2.153.
Samples were analysed by ALS Laboratories, with sample receipt
and preparation at ALS Bamako Mali with final analysis completed at
ALS Vancouver, Canada. Samples analysis was completed with a four
acid digest and final detection by ICP-AES method.
Lithium
The pegmatite veins intersected by drilling at Bougouni are
spodumene rich (20-30% spodumene content) low mica pegmatite bodies
with spodumene being the main lithium bearing mineral in most hard
rock lithium deposits. The high-grade lithium mineralisation
returned in the assays compares favourably with other hard rock
spodumene mineralised pegmatite veins under development around the
world where grades range from 1.1% Li(2) O through to 1.4% Li(2) O.
The intersections reported in this announcement have been estimated
using a 1.0% Li(2) O lower-cut, and have consistently high
mineralisation throughout the pegmatite bodies.
An initial review of the development process for the Bougouni
lithium pegmatite bodies was completed as part of the World Bank
sponsored SYSMIN study completed by CSA Global in 2008. This report
indicated that a process of mine site crushing, screening and dense
media separation techniques was able to produce a good quality
spodumene concentrate, with grade over 6% Li(2) O. Chemical grade
spodumene concentrate (typically containing 6% Li(2) O) is sold for
use in battery manufacturing and other industrial applications.
Recent lithium concentrate (grade 6%) prices are approximately
US$600/t.
The exploration results and activity reported in this
announcement have been reviewed by Mr Bernard Aylward who is a
Member of the Australasian Institute of Mining and Metallurgy. Mr
Aylward has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity being undertaken to qualify as a Qualified Person as
defined in the AIM Note for Mining and Oil & Gas Companies
dated June 2009. Mr Aylward consents to the inclusion in this
announcement of the matters based on his information in the form
and context in which it appears.
**ENDS**
For further information, please visit www.kodalminerals.com or
contact the following:
Kodal Minerals plc
Bernard Aylward, CEO Tel: +61 418
943 345
Allenby Capital Limited, AIM Nominated
Adviser Tel: 020 3328
Jeremy Porter/Nick Harriss 5656
SP Angel Corporate Finance LLP,
Financial Adviser & Broker Tel: 020 3470
John Mackay 0470
St Brides Partners Ltd, Financial
PR Tel: 020 7236
Susie Geliher/Megan Dennison 1177
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCGGUWUAUPMGMR
(END) Dow Jones Newswires
May 19, 2017 02:00 ET (06:00 GMT)
Kodal Minerals (LSE:KOD)
Historical Stock Chart
From Apr 2024 to May 2024
Kodal Minerals (LSE:KOD)
Historical Stock Chart
From May 2023 to May 2024