TIDMKOD
RNS Number : 7004U
Kodal Minerals PLC
16 July 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
16 July 2018
Kodal Minerals plc ('Kodal Minerals' or the 'Company')
Lithium Mineralisation at the Sogola-Baoule and Boumou
Prospects,
Bougouni Project, Southern Mali
Kodal Minerals plc, the mineral exploration and development
company focussed on the exploration and development of its Bougouni
Lithium Project in Southern Mali ("Bougouni" or the "Project"),
West Africa, is pleased to provide an update on further lithium
mineralised intersections from the Sogola-Baoule prospect
("Sogola-Baoule") and to provide details of the lithium
mineralisation intersected at the Boumou prospect ("Boumou"). The
Company is awaiting a further 3,100 assay results to be returned
from the lab, with additional results expected for the Bougouni
South, Ngoualana and Sogola-Baoule prospects from the Project.
To view this announcement with the illustrative maps and
diagrams please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/7004U_1-2018-7-15.pdf
Highlights
-- Sogola-Baoule mineralisation continues to extend to
northeast, with a further 7 drill holes received. Intersections
include:
o 10m at 1.02% Li(2) O from 114m;
14m at 1.66% Li(2) O from 127m in drill hole MDRC087;
o 15m at 1.49% Li(2) O from 41m in drill hole MDRC090;
(Note all depths are downhole depth, and true vertical depth
will be shallower or closer to surface)
-- Final results awaited from the remaining 15 drill holes that
were completed at the end of the field season at Sogola-Baoule.
-- Boumou prospect returns multiple mineralised pegmatite intersections. Intersections include:
o 19m at 1.40% Li(2) O from 69m in drill hole KLRC105;
o 11m at 1.58% Li(2) O from 39m in drill hole KLRC108;
o 11m at 1.55% Li(2) O from 41m in drill hole KLRC121;
o 15m at 1.46% Li(2) O from 45m in drill hole KLRC129
(Note all depths are downhole depth, and true vertical depth
will be shallower or closer to surface)
-- All intersections are from shallow depth and confirm continuity of surface pegmatite.
-- Mineralisation at Boumou defined over a 400m strike length in northern zone of prospect.
Bernard Aylward, CEO of Kodal Minerals, said: "We are very
pleased that the encouraging assay results for the Boumou prospect
are confirming our geological interpretation. This prospect is
continuing to develop, and we have a northern zone of pegmatite
veins defined for over 400m, and in the southern portion of the
prospect we have multiple mineralised veins that remain open along
strike. This is very positive for the economic potential of this
area and is now our third advanced prospect.
"The Sogola-Baoule prospect continues to return strong
mineralisation, and the strike length of 1,400m is very encouraging
for significant mineralisation to be defined here. This field
season has allowed us to complete a large amount of drilling, with
a focus on the Ngoualana, Sogola-Baoule and Boumou prospect to
support our resource estimates.
"We are continuing to push for a rapid development of the
Bougouni project and will be undertaking diamond drilling in August
at the Sogola-Baoule prospect to gain further metallurgical samples
and continue definition of this prospect. In parallel we will be
undertaking the maiden resource estimate for the project and
conducting preliminary mining optimisation studies. We are entering
a very exciting phase for the Bougouni project and we look forward
to reporting further over the next few months".
Further Information
Bougouni Lithium Project - Drilling Update
Sogola-Baoule Prospect
These additional drill holes for the Sogola-Baoule prospect
continue to confirm the extensive mineralised zone and the
potential for this prospect. The strike length exceeds 1,400m and
is expected to continue to grow as we complete further exploration
drilling. A further 15 drill holes are pending assay results for
the prospect to finalise the 2017/2018 field season. The initial
geological review of these drill holes confirms the continued
intersections of the pegmatite body, and in places the pegmatite
body is significantly wider indicating a convergence of structures
or structural repletion of the vein. This is a further positive
indication of the economic potential of this prospect where high
grade mineralisation has been consistently intersected under
shallow cover and remains open along strike and at depth.
The Company intends to re-commence drilling at this prospect in
August (during the rainy season) with diamond drilling for allow
detailed geological logging and interpretation. The diamond drill
holes will be a mixture of infill and definition drilling and will
be followed up by extensional drill holes targeting the zones
further to the north east.
Assay results have been received for a further 7 RC drill holes
at Sogola Baoule. The drilling has returned numerous mineralised
pegmatite intersections as expected for this prospect and the
significant intersections based on a minimum 5m width, and
calculated using a 1% Li(2) O lower cut-off, maximum 2m internal
dilution are tabled below:
Hole
Depth From To Thickness Li(2) O
Hole Id Northing Easting m m m m %
--------- -------- ------- ----- ---- ---------- --------
MDRC087 1253595 653235 163 84 89 5 1.99
MDRC087 114 124 10 1.02
MDRC087 127 141 14 1.66
--------- -------- ------- ----- ---- ---------- --------
MDRC089 1253550 653085 130 77 82 5 1.52
MDRC089 110 119 9 1.36
--------- -------- ------- ----- ---- ---------- --------
MDRC090 1253490 653085 145 41 56 15 1.49
--------- -------- ------- ----- ---- ---------- --------
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.
Boumou Prospect
The Boumou prospect is located 3.5km to the northeast of the
Sogola-Baoule prospect. All assay results have been received for
the recently completed exploration and definition RC drilling at
Boumou that consisted of 41 drill holes for 4,597m completed.
The prospect has intersected multiple lithium mineralised
pegmatite veins (refer figure 3). In the southern portion of the
prospect, drilling has identified 4 closely spaced pegmatite veins
with mineralised widths up to 19m (downhole) that confirm previous
reconnaissance drill testing and surface mapping. This area
requires further drill testing to target the strike extensions and
the depth extensions of the veins, and geological review indicates
a possible convergence of structures to the west. This is an
interesting area for further follow-up and the proposed drilling
programme consists of RC drilling to commence following the rainy
season.
In the northern portion of the prospect a consistent pegmatite
vein extending for over 400m with downhole mineralisation up to 15m
width has been confirmed by drilling. Follow-up drilling will
target the western extension of the zone where the structure
remains open along strike and also indicates a convergence of
structures.
The Boumou prospect is the third advanced prospect for the
Company at the Bougouni project and is undergoing mineral resource
assessment as the Company looks to complete its maiden resource
estimate.
Mineralisation intersections returned for the Boumou prospect,
based on a minimum 5m width, and calculated using a 1% Li(2) O
lower cut-off, maximum 2m internal dilution are tabled below:
Hole
Depth From To Thickness Li(2) O
Hole Id Northing Easting m m m m %
--------- -------- ------- ----- ---- ---------- --------
KLRC105 1255540 655355 109 69 88 19 1.40
--------- -------- ------- ----- ---- ---------- --------
KLRC106 1255600 655360 106 54 60 6 1.06
--------- -------- ------- ----- ---- ---------- --------
KLRC107 1255660 655355 109 63 69 6 1.55
--------- -------- ------- ----- ---- ---------- --------
KLRC108 1255720 655355 109 39 50 11 1.58
--------- -------- ------- ----- ---- ---------- --------
KLRC117 1256260 655600 109 54 65 11 1.52
--------- -------- ------- ----- ---- ---------- --------
KLRC120 1256260 655500 109 49 55 6 1.61
KLRC120 59 66 7 1.34
--------- -------- ------- ----- ---- ---------- --------
KLRC121 1256260 655550 109 41 52 11 1.55
--------- -------- ------- ----- ---- ---------- --------
KLRC122 1256260 655650 115 71 78 7 1.00
--------- -------- ------- ----- ---- ---------- --------
KLRC124 1256240 655500 193 98 108 10 1.37
--------- -------- ------- ----- ---- ---------- --------
KLRC125 1256240 655550 100 82 93 11 1.72
--------- -------- ------- ----- ---- ---------- --------
KLRC129 1256320 655500 117 45 60 15 1.46
--------- -------- ------- ----- ---- ---------- --------
Notes: As above information is the same for Boumou prospect
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. Further tests
completed by Shandong Ruifu Lithium Co Ltd, one of the largest
lithium carbonate producers in China, and reported by the Company
on 9 October 2017, produced a high quality, low impurity battery
grade lithium carbonate using spodumene concentrate from
Bougouni.
Recent lithium concentrate (grade 6%) prices range between
US$800/t and US$950/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
Jeremy Porter/Nick Harriss Tel: 020 3328
5656
------------------------------------------- -------------------
SP Angel Corporate Finance LLP, Financial
Adviser & Broker Tel: 020 3470
John Mackay 0470
------------------------------------------- -------------------
St Brides Partners Ltd, Financial PR
Susie Geliher/Megan Dennison Tel: 020 7236
1177
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END
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