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
03 March 2017
Kodal Minerals plc
('Kodal' or 'the Company')
Bougouni Lithium Project Update and Drilling to Commence
Kodal Minerals plc, the mineral exploration and development company focussed on West Africa, is pleased to provide an update on the recently completed trenching and the upcoming drilling campaign at the Bougouni Lithium Project ("Bougouni") in Southern Mali.
Highlights
· New wide zones (>30m) of pegmatite veins with abundant spodumene mineralisation (the main lithium bearing mineral in most hard rock lithium deposits) defined by recently completed trenching programme;
· A total of 14 trenches for 862m completed, targeting four prospect areas - assay results are awaited
· Trenching targeted extensions to known high-grade lithium pegmatite veins with targets including:
o Sogola-Baoule prospect: pegmatite vein delineated by trenching of up to 31m wide with abundant spodumene - follows rock chip sampling of up to 1.89% Li2O;
o Boumou prospect: pegmatite veins identified in trenches up to 12m in width with abundant spodumene and was targeting veins identified in geological mapping;
o Orchard prospect: parallel pegmatite veins of up to 11m in width identified in trenches that were targeting surface samples of up to 2.04% Li2O;
· Reverse Circulation drilling to commence in early March 2017, initially targeting the Ngoualana prospect where previous drilling confirmed wide, high-grade mineralisation of up to 28m at 1.84% Li2O;
· Follow-up drilling planned for Ngoualana to target the strike extensions, test depth continuity and define the high grade mineralised zones;
· Drilling will test the high priority targets identified from trenching and accelerate the Bougouni Lithium Project towards seeking a maiden resource estimation in 2017.
Bernard Aylward, CEO of Kodal Minerals, said: "Our recent trenching programme continues to identify high priority targets in our prospective Bougouni Lithium Project. We have now identified additional wide pegmatite veins that we will test drill in March. This field activity continues to confirm our strategy of developing a mining hub at Bougouni based on multiple, high-grade lithium pegmatite veins within the project area.
"This region in Mali is continuing to demonstrate a very strong development of lithium mineralisation, and within our project we continue to demonstrate great potential."
Further Information
Trenching
The on-going programme of geological mapping and rock chip sampling continues to identify areas for additional work. In areas of good outcrop, a process of mapping and interpretation outlines the pegmatite veins and is then used to trace these into areas where they disappear under transported alluvial cover. The trenching programme is then designed to target the high grade pegmatite veins under the cover and assist in the prioritisation of additional targets for drill testing.
At the Sogola-Baoule prospect, trenching targeted a wide, spodumene rich pegmatite vein and confirmed continuity under transported cover with a zone of 31m width exposed in the trench. This prospect is a priority for reconnaissance drilling and continues to demonstrate the greater Sogola area as a zone of numerous pegmatite intrusions that need geological mapping and sampling to assess the targets for drilling and possible development.
Geological mapping identified a new zone of pegmatite veins at the Boumou prospect and the completed trenches confirm veins up to 12m wide, and strike lengths exceeding 250m. Geological logging of the pegmatite confirms the high percentage of spodumene within the rock.
Trenching was completed at the Orchard prospect located to the south of the Kolossokoro licence and was designed to test an area of multiple pegmatite outcrops with rock chip sampling previously returning assay results up to 2.04% Li2O. The outcrop is generally poor in the area, with transported cover masking the bedrock geology. A series of trenches has been completed and has confirmed continuity of the pegmatites with multiple veins demonstrated up to 11m in width. The veins are again spodumene rich, and the close proximity of the veins makes this a high priority area for drill testing.
All assay results are pending for the trench samples.
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% Li2O through to 1.4% Li2O. The intersections reported in this announcement have been estimated using a 1.0% Li2O 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% Li2O. Chemical grade spodumene concentrate (typically containing 6% Li2O) is sold for use in battery manufacturing and other industrial applications. Recent lithium concentrate (grade 6%) prices are approximately US$600/t.
Bougouni Project
Bougouni consists of two concessions, Kolassokoro and Madina, which cover a contiguous area of 500km2. Kodal has recently entered into Option to Purchase and Access agreements that grant Kodal exclusive rights to explore and develop any identified mineralisation within the project area. Details of the agreements were announced in August and September 2016.
The project area is located approximately 180km south of Bamako, the capital of Mali, with excellent access to the project via sealed road from Bamako. The project area is located close to grid power, has access to good water supply and for future development will be able to link to a road-rail-port network from Mali to the Cote d'Ivoire port at Abidjan.
Orderly market agreement
During February 2017 as previously announced, Pelamis Investments Limited ("Pelamis") sold a portion of its holding of ordinary shares of 0.03125 pence in the Company ("Shares") following which its shareholding is 469,575,760 Shares representing 9.00 per cent of the Company's outstanding ordinary share capital. On 2 March 2017, Pelamis entered into an orderly market agreement ("Agreement") with the Company and its broker, SP Angel Corporate Finance LLP ("SP Angel"). Under the terms of this agreement, Pelamis has agreed for a period of 12 months to consult with the Company and SP Angel prior to undertaking any further disposals of Shares and will endeavour to conduct any further sales so as to ensure an orderly market. Furthermore, Pelamis has informed the Company that it does not currently intend to make further sales of Shares in the near future.
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 John Mackay/Laura Harrison |
Tel: 020 3470 0470 |
St Brides Partners Ltd, Financial PR Susie Geliher/Lottie Brocklehurst/Megan Dennison |
Tel: 020 7236 1177 |
