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
5 March 2018
Kodal Minerals plc ('Kodal Minerals' or 'the Company')
Continued High-Grade, Shallow Lithium Mineralisation at Ngoualana Prospect and Assay Results up to 7.15% Li2O
Bougouni Project, Southern Mali
Kodal Minerals plc, the mineral exploration and development company focussed on West Africa, is pleased to provide this update on drilling progress at the Company's Bougouni Lithium Project in Southern Mali ("Bougouni" or the "Project"). The Company is now reporting assay results for the final 19 holes drilled in 2017.
Highlights
· Ngoualana prospect continues to return high grade lithium mineralisation.
· Very high grade individual assays up to 1m at 7.15% Li2O
· 19 drill holes are reported today with high grades intersections of consistent pegmatite mineralisation up to 1.68% Li2O targeting the infill and extension drilling of the main prospect
· Multiple mineralised pegmatite intersections in drill holes and shallow depth intersections including:
o 1m at 7.15% Li2O from 43m;
o 26m at 1.67% Li2O from 83m;
o 10m at 1.43% Li2O from84m and 16m at 1.59% Li2O from 119m;
o 8m at 1.59% Li2O from 79m and 19m at 1.68% Li2O from 123m;
o 1m at 7.15% Li2O from 43m;
· Ngoualana strike length extended to over 850m and remains open along strike.
· Extension drilling has intersected a new zone of pegmatite up to 30m in width - this will be a priority target for additional drill testing
Bernard Aylward, CEO of Kodal Minerals, said: "Drilling at the Ngoualana prospect has delivered consistently encouraging and predictable results, giving us great confidence for further drilling, extensions and for the assessment for future development. The presence of shallow high-grade mineralisation is very positive, and this new pegmatite intersection located to the south of the main body is extremely encouraging. Our drilling will focus on defining this new zone and we are also reviewing our geological mapping and geophysics to attempt to follow this new zone and determine the relationship to the main zone.
"We have a further 17 drill holes in the lab for analysis that have been focussed on exploration and extension targets. We are continuing with the major exploration campaign and will include further geophysical studies to attempt to locate new zones of pegmatite intrusions and mineralisation. We remain fully funded to continue with our work programme, and further assay results will be reported as soon as they become available."
Further Information
Bougouni Lithium Project - Drilling Update
Exploration drilling at the Ngoualana prospect has targeted strike extensions to the main pegmatite body and completed reconnaissance testing of parallel targets. A total of 45 reverse circulation ("RC") drill holes for 5,619m have been completed since October 2017. This announcement reports the final drill holes completed prior to December 2017 and the final 19 drill holes continued to confirm shallow, high grade mineralisation at Ngoualana.
As reported in the announcement of 22 February 2018, Kodal's geological reconnaissance highlighted new zones of pegmatite "float" that was being drilled. Kodal is able to announce that geological logging of the drill holes confirms that a new zone of pegmatite, up to 30m down hole width, has been intersected. Assay results are pending, however this appears to present a significant opportunity to extend the Ngoualana prospect and this is a priority target for further drilling.
As previously announced, the drilling targeting the main Ngoualana prospect was designed to target strike extension and shallow infill zones to provide additional confidence in the geological model. All drill holes intersected pegmatite bodies, with the holes targeting the main zone continuing to confirm the presence of high-grade mineralisation and are consistent with our geological interpretation.
Assay results have been received for the final RC drill holes at the Ngoualana prospect completed prior to December 2017. Intersections are tabled below, with intersections calculated using a 1% Li2O lower cut-off, maximum 2m internal dilution and only reporting intersections of greater than 5m width:
Hole Id |
Northing |
Easting |
Hole Depth m |
From m |
To m |
Thickness m |
Li2O % |
KLRC085 |
1255334 |
664433.001 |
127 |
20 |
27 |
7 |
1.33 |
|
|
|
|
68 |
76 |
8 |
1.75 |
KLRC086 |
1255294 |
664269.001 |
145 |
75 |
80 |
5 |
0.92 |
|
|
|
|
83 |
109 |
26 |
1.67 |
KLRC087B |
1255278 |
664294.001 |
151 |
84 |
94 |
10 |
1.43 |
|
|
|
|
119 |
135 |
16 |
1.59 |
KLRC088 |
1255273 |
664318.001 |
151 |
81 |
92 |
11 |
1.27 |
|
|
|
|
125 |
137 |
12 |
1.64 |
KLRC089 |
1255263 |
664342.001 |
163 |
79 |
87 |
8 |
1.59 |
|
|
|
|
123 |
142 |
19 |
1.68 |
KLRC090 |
1255251 |
664363.001 |
181 |
107 |
113 |
6 |
1.07 |
|
|
|
|
129 |
143 |
14 |
1.64 |
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 Li2O% by a factor of 2.153. Intersections are reported using a 1%Li2O lower-cut-off, and allowing for a maximum of 2m internal dilution.
Samples were analysed by ALS Laboratories, with sample receipt and preparation at ALS Bamako Mali with final analysis completed at ALS Johannesburg, South Africa. Samples analysis was completed with a four acid digest and final detection by ICP-AES method.
The Company continued drilling in January and February 2018 and there are an additional 17 drill holes with samples dispatched to the lab and pending results.
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.
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 |
Tel: 020 3470 0470 |
St Brides Partners Ltd, Financial PR Susie Geliher/Megan Dennison |
Tel: 020 7236 1177 |
