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
21 June 2018
Kodal Minerals plc ('Kodal Minerals' or the 'Company')
High Grade Lithium Intersections Extend Sogola-Baoule Prospect to over 1.4km,
Bougouni Project, Southern Mali
Kodal Minerals plc, the mineral exploration and development company focussed on West Africa, is pleased to provide an update on further lithium mineralised intersections from the Sogola-Baoule prospect ("Sogola-Baoule"), which continue to confirm and extend this developing prospect. Additional drill results are pending for recent drilling completed within the Company's Bougouni Lithium Project in Southern Mali ("Bougouni" or the "Project").
To view this announcement with the illustrative maps and diagrams please use the following link: http://www.rns-pdf.londonstockexchange.com/rns/0629S_1-2018-6-20.pdf
Highlights
· High grade lithium mineralisation from an additional 19 drill holes from follow-up and extension drilling at Sogola-Baoule. Intersections include:
o 22m at 1.58% Li2O from 110m in drill hole MDRC083
o 20m at 1.43% Li2O from 34m in drill hole MDRC084
o 15m at 1.19% Li2O from 70m &
13m at 1.76% Li2O from 117m in drill hole MDRC066;
o 13m at 1.76% Li2O from 123m in drill hole MDRC073;
(Note all depths are downhole depth, and true vertical depth will be shallower or closer to surface)
· Drilling continues to extend mineralisation with strike length of 1,400m confirmed in drilling
· Drilling completed in June with assay results pending for a further 22 drill holes pending assay
· Exploration drilling completed at the Boumou prospect with a total of 41 drill holes completed
· Review of Boumou geology highlights new zone extending for over 400m with intersections up to 25m wide - all assay results pending
Bernard Aylward, CEO of Kodal Minerals, said: "The Sogola-Baoule prospect is continuing to grow in our ranking and we are expecting to receive further mineralised intersections over the next few weeks. The development of this prospect demonstrates the positive results of our exploration approach and at the end of a very busy drilling season, we now have three advanced prospects at Ngoualana, Sogola-Baoule and Boumou. These prospects will form the basis of our initial project assessment and potential for the development of a "mining hub" at Bougouni. In addition, we have undertaken exploration drilling at Bougouni South and regional testing at Ngoualana that continue to develop our pipeline of exploration targets to further grow our project.
"We expect this strong news flow to continue during the next quarter with results returning from our completed drilling and from the metallurgical testing and bulk sampling that has been happening in parallel as we look to fast track Bougouni towards a decision to mine in the near term."
Further Information
Bougouni Lithium Project - Drilling Update
Sogola-Baoule Prospect
As previously reported (1 May 2018, 21 May 2018 and 31 May 2018) exploration drilling at the Sogola-Baoule prospect has continued to define an extensive pegmatite body with current strike length exceeding 1,400m that remains open at depth and along strike. The interpretation of the Sogola-Baoule prospect is continuing to develop as we have identified a "Main" vein with additional hanging wall and footwall pegmatite veins that will add to the potential economic viability of a mining operation at this prospect.
The pegmatite bodies intersected by the drilling are typical of the Bougouni project and are spodumene rich with drill holes such as MDRC066, MDRC073, MDRC082 and MDRC083 demonstrating the consistent width and tenor of mineralisation. Geological logging of drill holes targeting the eastern extension of the prospect has revealed intersections up to 45m in down-hole width and this may indicate the convergence of hanging wall pegmatite veins with the "Main" vein. The Sogola-Baoule prospect has also been interpreted to be "off-set" by fault structures, however the detailed drilling has been able to locate and consistently extend the pegmatite bodies.
The next phase of exploration at Sogola-Baoule will incorporate diamond drilling to allow detailed geological logging, metallurgical testwork and geotechnical review of ground conditions to be incorporated in a mining assessment. Exploration drilling will also focus on infill and definition work as well as continue to test for extensions to the target zone. This drilling is expected to commence as soon as possible following the conclusion of the rainy season.
Assay results have been received for a further nineteen RC drill holes. The drilling has returned numerous mineralised pegmatite intersections as expected for this prospect and the significant intersections based on a minimum 5m width, and calculated using a 1% Li2O lower cut-off, maximum 2m internal dilution are tabled below:
Hole Id |
Northing |
Easting |
Hole Depth m |
From m |
To m |
Thickness m |
Li2O % |
MDRC066 |
1253455 |
652930 |
139 |
55 |
60 |
5 |
1.29 |
MDRC066 |
|
|
|
70 |
85 |
15 |
1.19 |
MDRC066 |
|
|
|
117 |
130 |
13 |
1.76 |
MDRC067 |
1253071 |
652661 |
118 |
58 |
64 |
6 |
1.28 |
MDRC073 |
1253470 |
652955 |
145 |
83 |
90 |
7 |
1.22 |
MDRC073 |
|
|
|
123 |
136 |
13 |
1.76 |
MDRC075 |
1253420 |
652955 |
127 |
69 |
83 |
14 |
1.42 |
MDRC078 |
1253515 |
653035 |
133 |
48 |
53 |
5 |
1.1 |
MDRC078 |
|
|
|
63 |
70 |
7 |
1.22 |
MDRC078 |
|
|
|
110 |
125 |
15 |
1.53 |
MDRC079 |
1253455 |
653035 |
157 |
43 |
59 |
16 |
1.46 |
MDRC080 |
1253395 |
653035 |
123 |
103 |
109 |
6 |
1.06 |
MDRC082 |
1253570 |
653135 |
135 |
76 |
82 |
6 |
1.46 |
MDRC082 |
|
|
|
110 |
132 |
22 |
1.58 |
MDRC083 |
1253510 |
653135 |
116 |
34 |
54 |
20 |
1.43 |
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.
An additional 22 drill holes are pending assay and will be reported as soon as available.
Boumou Prospect
The Boumou prospect is located 3.5km to the northeast of the Sogola-Baoule prospect. Exploration activity at the prospect prior to this programme has consisted of geological mapping and rock chip sampling that returned high-grade assay results (up to 2.52% Li2O, RNS 14 March 2017), trenching and reconnaissance RC drill testing that confirmed mineralised pegmatite veins.
The recently completed exploration and definition RC drilling at Boumou consisted of 41 drill holes for 4,597m completed with all assay results pending. The drilling programme targeted a wide zone of outcropping pegmatite veins and has confirmed a consistent pegmatite vein extending for over 400m with downhole intersections up to 25m being returned from the drilling. Geological logging of the drill holes confirms the pegmatite veins are consistent with the Bougouni pegmatite veins in that they are spodumene rich, have coarse mineral growth and have returned high-grade mineralisation from surface sampling and reconnaissance drill testing.
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. Further tests completed by Shandong Ruifu Lithium Co Ltd, one of the largest lithium carbonate producers in China, and reported by the Company on 9 October 2017, produced a high quality, low impurity battery grade lithium carbonate using spodumene concentrate from Bougouni.
Recent lithium concentrate (grade 6%) prices range between US$800/t and US$950/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 |
