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
19 April 2018
Kodal Minerals plc ('Kodal Minerals' or 'the Company')
Update on Exploration Programme at Bougouni Lithium Project
Kodal Minerals plc, the mineral exploration and development company focussed on West Africa, is pleased to provide an update on the Company's exploration programme at the Bougouni Lithium Project in Southern Mali ("Bougouni" or the "Project").
Highlights:
· Reverse circulation drilling continuing on site with two drill rigs operating on a "double shift" basis.
· Drilling planned to continue through to the beginning of the rainy season in June/July 2018 following which the Company expects to be in a position to commission a JORC Compliant Mineral Resource Estimate.
· Following the issuance of the new licences (announced on 17 April 2018), the contract for the bulk sample excavation, crushing and transport has been signed, initial payment made and the contract mining firm will be mobilising to site shortly.
· Metallurgical samples undergoing a test work programme at a facility in Australia designed to validate and expand on the initial metallurgical test results.
· A second sample has been dispatched to Chinese plant of Shandong Ruifu Lithium for further metallurgical testing following the first sample which indicated Bougouni could produce battery grade lithium carbonate.
Bernard Aylward, CEO of Kodal Minerals, said: "We are continuing with the major exploration and definition programme at Bougouni with multiple key activities happening in parallel as we look to fast track our project towards a decision to mine in as short a timeframe as practicable. The drilling is focused on infill and definition at the Ngoualana and Sogola-Baoule prospects, while we are also testing multiple exploration targets to define additional high-grade pegmatite zones.
"Alongside this drilling campaign, we are also progressing our bulk sample work and a contract mining firm will be mobilising to site shortly. The bulk sample will provide us with critical information regarding the mining and processing characteristics of our mineralisation and the metallurgy will provide us with key information on the quality of the product as well as specific information to be included in potential processing plant design."
Exploration Campaign:
Reverse Circulation Drilling
The reverse circulation ("RC") drilling programme is designed to continue infill and extension of the Ngoualana and Sogola-Baoule prospects. These are currently the two advanced prospects and it is anticipated that with well targeted drilling the Company will be in a position to commission a maiden JORC compliant mineral resource estimate following completion of this campaign.
In addition to the definition drilling, the programme is also continuing the exploration drill testing of existing and new prospects to allow us to continue to develop an inventory of targets within the Bougouni Lithium project that will support the development of a future mining hub. Prospects for immediate drill testing include the Boumou prospect, where previous first pass drilling confirmed high-grade pegmatite hosted mineralisation, as well as the newly identified Bougouni South prospect.
There are currently two drill rigs operating on site and this is anticipated to continue until the rainy season commences, normally in June/July. Assay results are pending for drilling completed in February and March 2018 and will be released to the market as received.
Bulk Sample
The contract for the 5,000t bulk sample has been signed and mobilisation is commencing to site. The contract is with the infrastructure development and mining group CGCOC, which has mining operations in Uganda, Nigeria and Guinea. The group has been contracted for the mining, crushing and transport of the sample to the port of Dakar from where it will be transported to the Shandong Ruifu Lithium plant in China for concentrating and processing testwork.
The bulk sample will be extracted from the Ngoualana prospect where outcropping and near surface mineralisation will be mined. This prospect provides an ideal initial test as the Company has surface mapping and sampling, drilling and geophysical data to compare to the mining operation and this will provide excellent data for use in future mine planning.
Metallurgy
The metallurgical testwork is continuing in Australia and China. The sampling is testing selected intervals of the diamond core from the Ngoualana prospect and will review the crushing parameters and recovery results of the spodumene minerals from the DMS and flotation system.
The metallurgical testwork will provide a "flow sheet" of the proposed processing path and potential recovery of the product from processing. The Company has been working towards developing a mining operation in Bougouni with the aim of producing a spodumene concentrate product for sale and this metallurgical test work will be important is assisting the design and development of a processing plant suitable for the Bougouni pegmatite hosted mineralisation. As announced on 9 October 2017, Shandong Ruifi Lithium, one of the largest lithium carbonate producers in China, produced a high quality, low impurity battery grade lithium carbonate using spodumene concentrate from Bougouni.
**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, AIM 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/Megan Dennison |
Tel: 020 7236 1177 |
