TIDMKOD
RNS Number : 5811F
Kodal Minerals PLC
22 February 2018
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
22 February 2018
Kodal Minerals plc ('Kodal Minerals' or 'the Company')
Further High-Grade, Shallow Lithium Mineralisation at Ngoualana
Prospect
Bougouni Project, Southern Mali
Kodal Minerals plc, the mineral exploration and development
company focussed on West Africa, is pleased to provide an update on
drilling progress at the Company's Bougouni Lithium Project in
Southern Mali ("Bougouni" or the "Project"). Results from a further
sixteen drill holes at the Ngoualana prospect, where drilling has
successfully extended the prospect to the east, have continued to
return high grade mineralisation. Assay results for a further
nineteen drill holes at Ngoualana are pending.
Highlights
-- Assay results at Ngoualana prospect continue to return high grade lithium mineralisation.
-- 16 drill holes completed with high grades of up to 1.75%
Li(2) O targeting the infill and extension drilling of the main
prospect as well as holes testing a southern target.
-- Multiple mineralised pegmatite intersections in drill holes
and shallow depth intersections including:
o 18m at 1.75% Li(2) O;
o 20m at 1.71% Li(2) O;
o 17m at 1.63% Li(2) O;
o 18m at 1.54% Li(2) O;
-- Ngoualana strike length extended to over 850m and remains
open along strike. Recent geological traverses have located
pegmatite "float" extending beyond drilling.
Bernard Aylward, CEO of Kodal Minerals, said: "We are delighted
to see that the Ngoualana prospect continues to return strongly
mineralised intersections and is defining continuity of shallow,
high grade lithium mineralisation that is important for the
economic development of the Project. The extension drilling
continues to outline parallel and splay structures that also
contain mineralised pegmatite bodies and it is exciting to see our
exploration model advancing well as we intersect additional
pegmatite bodies close to our existing prospects.
"Exploration drilling recommenced in January, which was
initially focussed on new exploration targets located to the west
of Ngoualana where outcropping pegmatite bodies have been
identified. In addition, geological field traverses to the east of
Ngoualana prospect have identified areas of possible pegmatite
extension and these are currently being drilled.
"Despite drilling being slower than anticipated as a result of
some difficult ground following the wet season, we are happy to see
conditions improve as we move to the next phase of drilling. We
remain fully funded to continue with our work programme, and
further assay results will be reported as soon as they become
available."
Further Information
Bougouni Lithium Project -Drilling Update
Exploration drilling at the Ngoualana prospect has targeted
strike extensions to the main pegmatite body and completed
reconnaissance testing of parallel targets. A total of 45 reverse
circulation ("RC") drill holes for 5,619m have been completed since
October 2017. Assay results have been returned for twenty-six drill
holes to date and these initial results confirm that the Ngoualana
prospect has been extended to over 850m in strike length and
currently remains open to the east and west. Geological
reconnaissance to the east has highlighted new zones of pegmatite
"float" that are currently being drilled, and if successful will
extend the prospect further east. To the west the Ngoualana
pegmatite reaches the Baoule River, and geological mapping has
highlighted extensions through the river and to the western river
bank. Further geological exploration is targeting the western
extension of this zone.
As previously announced, the drilling targeting the main
Ngoualana prospect was designed to target strike extension and
shallow infill zones to provide additional confidence in the
geological model. These results continue to confirm the presence of
high-grade mineralisation and are consistent with our geological
interpretation.
Drill holes KLRC063 through KLRC066 and KLRC083 targeted zones
of geologically mapped pegmatite bodies located to the south of
Ngoualana. These drill holes confirmed the presence of pegmatite
units, however no zones of wide, continuous mineralisation have
been intersected in this reconnaissance drilling.
Assay results have been received for an additional sixteen RC
drill holes at the Ngoualana prospect. Intersections 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:
Hole Li(2)
Hole Depth From To Thickness O
Prospect Id Northing Easting m m m m %
----------- ---------- --------- ---------- ------- ----- ---- ---------- ------
Ngoualana KLRC062C 1255322 664462.78 103 26 43 17 1.63
----------- ---------- --------- ---------- ------- ----- ---- ---------- ------
KLRC062C 52 58 6 1.62
---------------------- --------- ---------- ------- ----- ---- ---------- ------
KLRC062C 77 88 11 1.44
---------------------- --------- ---------- ------- ----- ---- ---------- ------
Ngoualana KLRC067 1255320 664482 112 32 50 18 1.54
----------- ---------- --------- ---------- ------- ----- ---- ---------- ------
KLRC067 96 104 8 1.63
---------------------- --------- ---------- ------- ----- ---- ---------- ------
Ngoualana KLRC068 1255314 664511 112 25 45 20 1.71
----------- ---------- --------- ---------- ------- ----- ---- ---------- ------
Ngoualana KLRC069 1255312 664534 133 18 36 18 1.75
----------- ---------- --------- ---------- ------- ----- ---- ---------- ------
Ngoualana KLRC071 1255326 664597 119 68 75 7 1.57
----------- ---------- --------- ---------- ------- ----- ---- ---------- ------
KLRC071 88 95 7 1.51
---------------------- --------- ---------- ------- ----- ---- ---------- ------
Ngoualana KLRC072 1255261 664537 170 39 46 7 1.47
----------- ---------- --------- ---------- ------- ----- ---- ---------- ------
Ngoualana KLRC073 1255305 664615 73 55 64 9 1.69
----------- ---------- --------- ---------- ------- ----- ---- ---------- ------
Ngoualana KLRC076B 1255305 664582 176 32 40 8 1.4
----------- ---------- --------- ---------- ------- ----- ---- ---------- ------
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
differential GPS with sub 1-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.
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, 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
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