TIDMKOD
RNS Number : 1412O
Kodal Minerals PLC
28 May 2020
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
28 May 2020
Kodal Minerals plc ("Kodal Minerals" or the "Company")
Company Update on the Bougouni Lithium Project
and
Gold Exploration Projects
Kodal Minerals, the mineral exploration and development company,
is pleased to provide this update on the progress of the Bougouni
Lithium Project ("Bougouni" or the "Project") Mining Licence
application in Mali. In addition, the Company provides an update on
its gold exploration properties in Mali and Cote d'Ivoire.
Highlights:
Bougouni Lithium Project
-- Kodal informed that the Feasibility Study accompanying the
Mining Licence application has been accepted by the Ministry of
Mines and Petroleum
-- The Ministry of Mines and Petroleum confirmed that no further
COMINE technical and financial meetings are required prior to
Mining Licence approval
-- The Directorate Nationale de la Géologie et des Mines
("DNGM") has agreed the new Mining Licence area and new permit
boundary that encompasses all resources and the proposed mining and
associated infrastructure area
-- Kodal still awaiting formal issuance of final Mining Licence
documents and notes that the COVID-19 restrictions have impacted on
the Mali Government's process and timing of delivery cannot be
confirmed.
Gold Exploration Project Review
-- The gold assets in Mali and Cote d'Ivoire have attracted
interest from investors and other exploration and development
companies
-- The portfolio of gold assets has been maintained in good
standing, and the tenure has been refreshed where possible
-- The projects have been reviewed by our geological team and a
strategy for further exploration has been developed for the
Nangalasso project in Mali and the Dabakala project in Cote
d'Ivoire
-- Nangalasso project review has highlighted a 5,500m gold
anomalous trend with intersections including 21m at 1.25g/t gold,
including 3m at 7.85g/t gold
-- Dabakala project has an extensive surface geochemical anomaly
extending for 8km in strike length in a new region with classical
Birimian gold geological setting and structures.
Bernard Aylward, CEO of Kodal Minerals, remarked: "The
acceptance of the Feasibility Study, submitted in support of the
Mining Licence application, by the Mali Governments is a reflection
of the level of detail supplied and incorporated into the study and
supports our belief in the economic potential of the project. The
Mali Government continues to be very supportive of the development
of a lithium mining industry in Mali, and the progress of our
permitting reflects the governmental support Kodal has received.
Although an exact timeline cannot be given for the final approval
of the Mining Licence application, our communication with the
Government will continue regularly and we will keep shareholders
updated with our progress.
"Kodal's gold projects have continued to attract interest in
light of the ongoing strength in the gold price and recognition of
a high quality land position in the world class Birimian sequence
of West Africa. We have maintained our landholding in Mali where
our priority Nangalasso project is located adjacent to the Syama
Gold mine, and just 30km to the north of the Sissingue Gold mine.
Preliminary exploration has been undertaken at Nangalasso,
returning very encouraging intersections over an extensive strike
length and follow-up exploration is being developed. In Cote
d'Ivoire we have recently renewed licences and at our Dabakala
project we expect to undertake infill geochemical sampling to
define new drill targets.
"This continues to be an active time for Kodal as we prepare for
the granting of the Bougouni Lithium project mining licence and we
have the opportunity to advance the exploration on our gold assets
to enhance the long term value for the Company."
Further Information
Gold Project Review
Nangalasso Project
The Nangalasso project which consists of three concessions, the
Nangalasso, Sotian and Tiedougoubougou concessions covering an area
of approximately 310km(2) . The Sotian and Tiedougoubougou
concessions are new concessions in the initial three-year term,
with two renewals of two years each remaining. The Nangalasso
concession has a final two-year renewal remaining. Kodal Minerals
is the 100% beneficial owner of the project having completed all
option payments. The project is located in the Sikasso region of
southern Mali, an area that hosts the Syama Gold Mine and the
Morilla Gold Mine, and the regions hosts significant mines in Cote
d'Ivoire including the Sissingue Gold mine and the Tongon Gold
mine. The Nangalasso project is located in a similar geological
setting to the Sissingue deposit located just 30km to the
south.
Previous exploration at Nangalasso has consisted of surface
geochemical sampling, auger geochemical drilling, trench sampling
and wide-spaced reconnaissance aircore drilling. A large
geochemical gold anomaly has been defined at Nangalasso and results
from the reconnaissance drilling include:
-- 21m at 1.25g/t gold, including 3m at 7.1g/t gold
-- 3m at 7.84g/t gold including 1m at 13.5g/t gold (eoh)
-- 1m at 7.8g/t gold.
A review of the historic drilling, geochemical sampling and
artisanal workings has highlighted a 5,500m strike length of gold
anomalism requiring further reconnaissance exploration and infill
and definition work.
Dabakala Project
The 100% owned Dabakala project is located in central Côte
d'Ivoire and consists of one granted concession covering an area of
approximately 300km(2) . Previous exploration activity by Kodal
Minerals has defined a new extensive surface geochemical anomaly.
Field geological mapping highlights the association of sheared and
altered geology associated with the anomaly, and the presence of
artisanal workings further defines zones of interest. This is a
large surface anomaly, extending for over 10km of strike and up to
800m in width.
Exploration at Dabakala is at an early stage with sample spacing
at a reconnaissance level of 1,000m line x 200m sample spacing over
key areas of the anomaly. Geochemical sampling results from
multiple phases of work confirm the extent of the gold anomaly with
results up to 97ppb returned. Further work is required to define
this prospect prior to initial drill testing.
Development and Exploration Strategy
Kodal Mineral's focus remains the fast track development of the
Bougouni Lithium project. The company expect the Mining Licence to
be approved and is continuing to review the proposed mining study
as well as working to improve the optimisation of the operation and
finalising the processing plant design.
The Company's review of its gold assets highlights the potential
for a focussed exploration programme at the Nangalasso project in
Mali and the Dabakala project in Cote d'Ivoire to deliver
exploration success for Kodal. An exploration programme that is
being developed to advance these priority projects will consist
of:
-- Reconnaissance Aircore drilling along a 5,500m strike length
at the Nangalasso project, with drilling being targeted by historic
geochemistry, drilling and geological mapping.
-- Infill geochemical sampling at Dabakala including geological
mapping of the defined gold anomalous zone to prioritise
reconnaissance drilling
Exploration activity will be able to be undertaken by our
existing geological team which has substantial experience in the
gold exploration in West Africa.
A summary presentation of the Company's projects and strategy
has been prepared and is available on the Company's website.
**S**
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/Cosima Akerman Tel: 020 7236
1177
About Kodal Minerals
Kodal Minerals' primary focus is on the rapid advancement
towards production of its flagship Bougouni Lithium Project in
Southern Mali. The JORC Resource Estimate places the Bougouni
Project in the top 15 hard rock lithium projects globally and was
calculated using only three of the eight currently recognised
prospects demonstrating the significant exploration upside
potential remaining across the 450km(2) project area. The Mineral
Resource estimate for the Ngoualana, Sogola-Baoule and Boumou
prospects are tabulated below. These mineral resources are reported
in accordance with the JORC Code:
Prospect Indicated Inferred Total
Contained Contained Contained
Li(2) Li(2) Li(2) Li(2) Li(2) Li(2)
Tonnes O% O Tonnes O% O Tonnes O% O
(Mt) Grade (kt) (Mt) Grade (kt) (Mt) Grade (kt)
------- ------- ---------- ------- ------- ---------- ------- ------- ----------
Sogola_Baoule 8.4 1.09 91.9 3.8 1.13 42.8 12.2 1.10 134.8
------- ------- ---------- ------- ------- ---------- ------- ------- ----------
Ngoualana 3.1 1.25 39.2 2.0 1.12 22.1 5.1 1.20 61.3
------- ------- ---------- ------- ------- ---------- ------- ------- ----------
Boumou 4.0 1.02 40.4 4.0 1.02 40.4
------- ------- ---------- ------- ------- ---------- ------- ------- ----------
TOTAL 11.6 1.13 131.2 9.7 1.08 105.3 21.3 1.11 236.5
------- ------- ---------- ------- ------- ---------- ------- ------- ----------
Notes: Mineral resources are reported using a 0.5%Li(2) O
cut-off. Figures may not sum due to rounding. The contained metal
is determined by the estimated tonnage and grade.
The Bougouni Project and recently acquired 200km(2) Bougouni
West project are located in an emerging lithium province that is
already attracting the attention of investors and off-take partners
interested in securing a long-term supply of lithium. With the
support of its strategic investor and off-take partner Suay Chin
International Pte, a Singapore-based lithium and chemical trader,
Kodal Minerals is well positioned to continue its ambitious
development programme at Bougouni.
Further to this, Kodal Minerals is the manager of additional
lithium and gold projects that are undergoing low cost exploration
programmes in addition to JV funded gold properties in Cote
d'Ivoire that offer potentially significant long-term value.
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END
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