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

14 November 2023

Kodal Minerals plc

("Kodal Minerals", "Kodal" or the "Company")

Bougouni Lithium Project Mineral Resource Update:

Total Resource increased to 31.9 Mt at 1.06% Li₂O

Kodal Minerals, the mineral exploration and development company focused on lithium and gold assets in West Africa, announces a new JORC Mineral Resource estimate (MRE) for the Bougouni Lithium Project located in southern Mali ("Bougouni") of 31.9 million tonnes (Mt) at 1.06% Lithium Oxide (Li₂O), an increase of over 40% from the previous Mineral Resource completed in 2019.  The significant increase is specific to the Ngoualana and Boumou deposits following the drilling programmes completed in early 2023.  

The updated Mineral Resource estimate has been prepared as part of the development plans for Bougouni. As previously announced, the Company plans for a two stage development strategy: Stage 1 through processing ore from the Ngoualana deposit through a dense media separation ("DMS") process plant; and Stage 2 through processing ore from the Boumou and Sogola-Baoulé deposits through a flotation plant.

Highlights

·    The 40% increase in Bougouni's spodumene resource adds 10.6Mt to bring the overall MRE to 31.9Mt at 1.06% Li₂O following 3,230 metres of RC/diamond drilling during 2023.

·    New JORC Mineral Resource estimates have been prepared for the Boumou and Ngoualana prospects:

o  Boumou:             13.1Mt at 1.04% Li₂O, an increase of 236% from the 2019 estimate

(Boumou Resource reported using a 0.75% Li₂O lower cut-off, no top cut-off)

o  Ngoualana:         6.7Mt at 1.00% Li₂O, an increase of 9% from the 2019 estimate

(Ngoualana MRE reported using 0.5% Li₂O lower cut-off, no top cut applied)

The MRE update also improves Kodal management's confidence in the previously defined resource at the Ngoualana prospect ahead of the proposed DMS mining development.

·    Sogola-Baoulé prospect has a resource of 12.2Mt at 1.1% Li₂O, which is unchanged from the 2019 resource estimate, and the next phase of drilling will include additional metres with potential to expand Sogola-Baoulé.

·    Boumou prospect remains open along strike and drilling is planned to commence in late November 2023 to target an additional 750m strike length.

·    Ngoualana resource is undergoing open pit optimisation and the mine design is being updated to capture the increased resources, and to support the final planning of the Ngoualana prospect's DMS development.

·    The next drilling campaign will commence imminently, focussing on further resource definition, infill and exploration drilling at Boumou and Sogola-Baoule prospects, as well as those not included in the MRE to date including Kola and Bougouni South, all within the current Bougouni mining licence.

Commenting on the 40% increase in Bougouni's MRE, Bernard Aylward, CEO of Kodal Minerals, stated: "The significant increase in Bougouni's lithium endowment is a further step towards becoming a West African spodumene producer of substance and scale. With the results from the latest drilling campaign delivering over 10Mt of resource, we are looking forward to bringing Bougouni into production at the end of 2024, as well as ramping up the drilling programme to include infill and extension definition drilling, and uncovering additional discoveries within our extensive mining licence.

"The drilling campaign completed by Kodal between January and May this year was the first programme conducted at the Bougouni Lithium Project since 2019.  The results of the drilling programme confirm our positive view of the prospectivity within our project area, while the updated MRE highlights the potential for further resource growth at the project through continued drilling of our priority targets.  The Boumou prospect has been significantly expanded by this recent drilling programme, and we will be returning in November 2023 to seek to extend the resource area further as well as undertaking infill and definition drilling to support future mine planning.

"The Ngoualana prospect resource has confirmed and expanded the 2019 resource estimate, and the new model has been prepared with a focus on the bulk commodity mining opportunity.  This new model seeks to maximise the recovery of the pegmatite mineralisation during the mining process rather than attempting to selectively mine higher grade ore that may result in leaving mineralisation behind.

"We are currently planning the next phases of extension and definition drilling at the Bougouni Lithium Project with the Boumou prospect being a clear priority. However, the Sogola-Baoulé prospect is also a key expansion target as we look to build a major resource base to support the development of the phase 2 flotation plant.  The aim of the programme is to demonstrate the potential to bring forward the development of the flotation plant as soon as possible after the DMS plant has been fully commissioned and maximise the opportunity we have at the Bougouni Lithium project."

Further Information

Mineral Resource Estimate

This updated MRE has been completed by independent consultants ERM (formerly CSA Global).  Kodal supplied a geological database and verified the geological interpretation that was used to define the lithium mineralised pegmatite bodies.

Resource updates were completed for the Ngoualana and Boumou prospects following additional reverse circulation ("RC") and diamond drilling.  The updated JORC compliant Mineral Resource estimate for the Bougouni Lithium project, including the Sogola-Baoulé, Ngoualana and Boumou prospects is tabulated below:

Notes:  Sogola-Baoulé resource estimate unchanged from 2019.  A 0.5% Li₂O lower cut-off applied, and resource wireframe defined by a 0.3% Li₂O selected boundary.  Estimate completed utilising Surpac software.

Ngoualana resource estimate reported utilising a 0.5% Li₂O lower cut-off.  All pegmatite mineralisation modelled including zones of internal waste material for a fully diluted model. The geological model of the mineralisation is completed using Leapfrog modelling software.  The Mineral Resource estimation is completed using Surpac software with grades estimated by Ordinary Kriging.

Boumou resource reported using a 0.75% Li₂O lower cut-off. All pegmatite mineralisation modelled including zones of internal waste material for a fully diluted model. The geological model of the mineralisation is completed using Leapfrog modelling software.  The Mineral Resource estimation is completed using Surpac software with grades estimated by Ordinary Kriging.

Figures in table may not sum due to rounding.  The contained metal is determined by the estimate tonnage and grade.

The JORC code Table 1 with details of the resource estimate parameters is available to view on the Company's website at www.kodalminerals.com

Exploration and Development Programme

At the Ngoualana prospect, the Company is continuing with the rapid development of the Bougouni Lithium Project with a focus on the development of the proposed DMS plant to process the coarse grained mineralisation identified within this prospect.  The updated mineral resource estimate for the Ngoualana prospect is currently undergoing an update to the open pit optimisation to finalise the open pit design and results are expected later this year.

Kodal is currently finalising an extension and definition drilling programme for the Boumou prospect where this new resource has highlighted a major increase in the previous estimate and in particular has confirmed the potential for further significant additional mineralisation along strike and at depth.   The drilling programme will consist of:

o  RC drilling to continue to target strike extensions over an additional 750m to the west, as well as new targets identified to the east of the prospect

o  Diamond drilling to provide geological and structural control features of the pegmatite veins which in turn will enhance success of ongoing targeting

o  Diamond drilling to provide metallurgical samples for testing to confirm the recoveries and possible material to supplement the proposed DMS plant and/or future flotation plant, which in both cases will support increased life of mine potential

o  Diamond drilling to provide geotechnical information for future open-pit mining.

The Company anticipates that the Boumou and Sogola-Baoulé region will continue to demonstrate the potential for the development of the proposed 2Mtpa flotation plant (Phase 2) outlined in the Company's Feasibility Study (refer to Kodal's announcement of 27 January 2020).

In addition to the detailed programme at the Boumou prospect, the Company intends to undertake further drilling at the Kola, Bougouni South and Sogola-Baoulé prospects. Both Kola and Bougouni South do not currently figure in the Mineral Resource estimate and provide further potential for resource increase.

Qualified Person's Statement

The Mineral Resource estimate for the Sogola-Baoulé prospect has been prepared by Dr Matthew Cobb who is a Member of the Australian Institute of Geoscientists.  Dr Cobb completed the resource estimation in 2019 and the resource remains unchanged from that time.  Dr Cobb 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. Dr Cobb has consented to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to the Mineral Resource estimates for Ngoualana and Boumou prospects is based on information compiled by Mr Phil Jankowski, who is a Fellow of the Australasian Institute of Mining and Metallurgy and a full-time employee of ERM (formerly CSA Global).  Mr Jankowski 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 Jankowski consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

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:

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