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").  With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

Kodal Minerals Plc / Index: AIM / Epic: KOD / Sector: Mining

16 December 2021

Kodal Minerals plc ('Kodal', 'Kodal Minerals' or the 'Company')

Interim Results

Kodal Minerals, the mineral exploration and development company, announces its unaudited interim results for the six months ended 30 September 2021 and provides a review of recent activities.

Overview:

·    Significant progress made across entire exploration and development portfolio as Kodal advances its key lithium and gold projects in West Africa

Bougouni Lithium Project

·    Mining Licence granted in November 2021 covering the proposed open-pit mining and processing operation at Bougouni - the project is now fully permitted for development and construction. 

·    Immediate commencement of a programme of work in November 2021 to update the Feasibility Study announced in January 2020 ahead of securing funding for mine development and construction.  The programme has a six-month time estimate and will focus on:

o  Metallurgical test work for variability testing and confirmation of process flowsheet, investigating the potential for increased metallurgical recoveries;

o  Completion of geotechnical and hydrogeological reviews for open pit and the tailings dam;

o  Update and finalisation of capital cost estimates and operating costs for the proposed development; and

o  Community development and stakeholder engagement activities at Bougouni.

·    Acquisition of the retained 10% interest in Bougouni concessions from original owners allowing Kodal to further explore development and financing opportunities as the 100% owner.

Nielle Gold Project - Cȏte d'Ivoire

·    Initial reverse circulation ("RC") drilling programme completed consisting of a total of 12 drill holes for 1,285m.

·    These intersections confirm the extent and high-grade nature of the mineralisation at Nielle and will be used to focus follow-up drilling to target definition of high-grade zones.

·    Gold mineralisation is associated with quartz-carbonate-sulphide mineralisation and remains open along strike and at depth.

·    Final assay results confirm high grade mineralised zones with grades up to 38.5g/t gold, and intersections include:

o  13m at 5.07g/t gold from 12m in drill hole NLRC035*

- including 3m at 16.33g/t gold from 13m.

o  12m at 3.14g/t gold from 21m in drill hole NLRC038

- including 2m at 10.79g/t gold from 27m

o  5m at 15.42g/t gold from 7m in drill hole NLRC032

- including 2m at 31.54g/t gold from 8m

o  9m at 4.33g/t gold from 86m in drill hole NLRC038

- including 2m at 16.88g/t gold from 88m

(*Note NLRC035 interval 11m to 12m unable for re-split sampling and not included in calculation)

Fatou Project - Mali

·    Initial RC drilling programme consisting of 11 RC drill holes for 1,242m completed with initial programme focussed on the northern Fatou area where historic NI43-101 resource estimate had previously been completed around an area of significant artisanal workings.

·    Kodal is seeking to validate the width and tenor of mineralisation in this area and drilling has indicated zones of sulphide mineralisation as well as highlighting extensions of artisanal workings.

·    All samples have been dispatched to laboratory for analysis and results are expected in January 2022.

Kodal has maintained the tenure of all other gold project in Mali and Cȏte d'Ivoire in good standing and continues to evaluate exploration programmes to advance these projects.

Bernard Aylward, CEO of Kodal Minerals, said: "The six months ending 30 September 2021 and the subsequent weeks continued a very busy period for the Company and we have achieved important milestones that support the Company's ambitions for the development of the Bougouni Lithium Project and the advancement of our gold projects.

"The granting of the mining licence for the Bougouni Project finalises the permitting required for the commencement of development, construction and operation of this mine.  This has come at a very opportune time as we continue to see an exponential increase in lithium demand and strong sentiment for the lithium spodumene market, and the lithium-ion battery market in general.  Kodal notes the increasing demand for, and price of, the spodumene concentrate it intends to produce and notes that the current market price exceeding US$2,300 per tonne of concentrate compares very favourably with the price of US$680 per tonne used as the initial price in our 2020 Feasibility Study.

"Our activities at Bougouni continue to focus on the community and environmental aspects of our development activity in the region and are building on our strong relationships as we move to finalise community development and compensation packages as part of our mine development.  In addition, we have been undertaking a review of our existing Feasibility Study to upgrade costs and estimates to reflect current expectations and best practices.  This work has included a review of our proposed treatment plant plans undertaken with a major Chinese consulting and construction group, to update our original capital estimates and look to improve our flowsheet and metallurgical recoveries.  Results of this important work are expected by the end of January 2022.

"Kodal's is active on multiple gold exploration projects across southern Mali and Northern Cȏte d'Ivoire where the Company is continuing to undertake drilling programmes with the aim of proving up what we believe will be a very significant global resource inventory across our gold assets.

"At the Nielle project the shallow, high-grade gold mineralisation from our initial drilling programme is very encouraging.  The extent of the shallow-high grade gold mineralisation up to 38.5g/t gold will be important to determine as well as continuing to extend the depth of the gold mineralised structures.  Exploration of these mineralised systems throughout West Africa is continuing to highlight the importance of the controls on the high-grade gold mineralised shoots, and our next phase of drilling will also attempt to define the controls and possible plunge directions of the high-grade zones.

"At the Fatou project we have recently completed our initial drilling programme.  The initial target area has widespread artisanal workings and the historic drilling has not been able to test fully the extent of the gold mineralised zone.  All our samples have been dispatched to the laboratory and we look forward to reporting the assay results as they are expected to be received in January 2022."

Chairman's Statement

I am pleased to report that Kodal is in a strong strategic position and its exposure to the buoyant lithium market as well as its gold projects augurs well for the continued development of the Company.  The lithium market has experienced strong price rises over the course of the 2021 year and this rise is driven both by a clear supply deficit as well as a major increase in the battery market and in particular the uptake of electric vehicles ("EVs"). 

In the 6-month period ended 30 September 2021, the Group has recorded a loss of £373,000 compared to losses of £255,000 for the 6 months to 30 September 2020 and £623,000 for the year to 31 March 2021.

Cash balances as at 30 September 2021 were £3,085,000 compared to £870,000 at 30 September 2020 and £2,432,000 at 31 March 2021.  Cash as at 30 November 2021 was £1,584,000 with the funds spent in the six month period including £880,000 on the acquisition of the minority interests in the Bougouni Project and a further £958,000 spent on exploration and development activities at the Company's projects.

Kodal has an extensive development and exploration programme planned for the Bougouni Project as well as the gold exploration projects.  The Bougouni Project is the flagship project for the Company and we anticipate completing our review and update of the Feasibility study, to reflect current pricing as well as potential cost increases from the 2019 base, by the end of January 2022.  The Company will also focus on potential funding of the development of Bougouni with discussions ongoing with parties looking to secure a position in the lithium market where it is becoming clear that advanced, near development projects are the focus of corporate activity.  The Company will maintain the exploration drilling at the gold projects with the aim of defining new mineral resources that will demonstrate the value of the gold portfolio.

I look forward to reporting on our progress in the Company's Annual Report for the year ending 31 March 2022.

Robert Wooldridge

Non-Executive Chairman

Contact details:

For further information, please visit www.kodalminerals.com or contact the following: