REG - Kodal Minerals PLC - Bougouni Assay Results & Funding Package Update

Kodal MineralsAnnouncement

31/05/2023 07:00

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RNS Number : 1453B  Kodal Minerals PLC  31 May 2023

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

 

31 May 2023

Kodal Minerals plc

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

 

Bougouni Lithium Project Final Assay Results Confirm High-Grade Mineralisation

and

Update on Funding Package - Further Extension of Long Stop Date to 30 June
2023

 

Kodal Minerals, the mineral exploration and development company focused on
lithium and gold assets in West Africa, provides an update on the Bougouni
Lithium Project Funding Package with Hainan Mining Co. Limited ("Hainan") and
its wholly owned UK-incorporated subsidiary Xinmao Investment Co. Limited
("Xinmao") and the agreement of all parties to allow a further extension of
the long stop date to 30 June 2023.

 

The Company is also pleased to provide an update on the completed drilling at
the Company's Bougouni Lithium Project located in southern Mali. In this
regard, the Company reports additional lithium mineralised intersections at
the Boumou, Bougouni South and Ngoualana prospects.

 

Highlights:

·    Further wide, high-grade extensions returned at the Boumou prospect
with significant results including:

o  24m at 1.13% Li(2)O from 55m

including 8m at 1.37% Li(2)O from 55m in drill hole KLRC193.

·    The Boumou prospect is a high priority target for further drilling to
extend and define the pegmatite bodies to allow a new resource estimate to be
completed.

·    Final results have been received for the Bougouni South drilling
programme with significant lithium mineralised intersections including:

o  11m at 1.14% Li(2)O from 71m; and

6m at 1.48% Li(2)O from 101m in drill hole MDRC135.

·    Drilling has confirmed extensive pegmatite veins at Bougouni South
that require additional exploration including diamond drilling to determine
structural control and extent of mineralisation.

·    At the Ngoualana prospect diamond drill holes completed along the
strike of the orebody to obtain variability test samples have returned wide
high-grade intersections up to:

o  37m at 2.17% Li(2)O from 3m to end of hole in drill hole MT004.

 

 

Bernard Aylward, CEO of Kodal Minerals, remarked: "Kodal and our partners
Hainan and Xinmao continue to work together to finalise all conditions
precedent for the completion of the funding package.  While it is
disappointing that we have not yet finalised this process and require a
further extension of the long stop date, the parties remain committed to the
transaction and are working together on the preliminary engineering and
development processes required to ensure we move quickly into development upon
completion and receipt of funds.

 

"The assay results received for the drilling campaign continue to demonstrate
significant extensions at the Boumou prospect with wide high grade pegmatite
zones further extended.  We are very confident that further drilling will
continue to expand this prospect and it is now the priority target for infill
and extension drilling.  Upon completion of the next phase of drilling at the
Boumou prospect the JORC Mineral Resource estimate will be updated to be
included in the long-term planning and the timing of the possible further
development of a flotation plant at Bougouni in addition to the initial
proposed DMS (dense media separation) plant.

 

"The Company is continuing with the final metallurgical testing and
engineering design for the proposed DMS development, and we expect to be able
to update shareholders on ongoing activity as details become available."

 

FURTHER INFORMATION

Bougouni Lithium Project - Funding Package

Kodal, Kodal Mining UK Limited ("KMUK"), Hainan and Hainan's wholly owned
UK-incorporated subsidiary Xinmao have agreed to an extension of the deadline
for the completion of the funding package announced on 19 January 2023 to 30
June 2023 (originally 30 April 2023, and first extended to 31 May 2023).

 

The extension is required for conditions precedent to be satisfied, including
the transfer of the Bougouni Project to a new Mali mining company owned by
Kodal's recently incorporated UK subsidiary KMUK.  This restructuring is in
progress and the parties have agreed to further extend the completion deadline
for the funding package to 30 June 2023.

 

The parties are fully committed to the completion of the funding transaction
as soon as possible and continue to work together to prepare for the
development of the project with activities including additional metallurgical
testwork, engineering planning and review and finalisation planning for the
proposed DMS development.

 

The approvals the Hainan and Xinmao have received from the Chinese Government
authorities, and as announced by the Company on 13 April 2023, remain valid
for the parties to complete its funding and investment, including "Overseas
Project Investment Filing Certificates" from the Hainan Province National
Development and Reform Commission ("NDRC") and Company Overseas Investment
Certificate from the Department of Commerce of Hainan Province.

 

 

Ngoualana Prospect

At the Ngoualana prospect a series of diamond drillholes were completed to
provide variability samples along the strike of the orebody for additional
metallurgical testwork.  The drilling targeted near surface mineralisation to
assist in planning of the initial mining period.

 

As expected, the drillholes intersected coarse grained spodumene rich
pegmatite veins consistent with all previous drilling.  The samples visually
contained abundant spodumene crystals and highlight this prospect as a prime
opportunity for the DMS process to successfully produce a high-grade spodumene
concentrate.

 

All assay results have been received for the drill holes, and high-grade
mineralisation has been confirmed commencing from surface.  All significant
intersections are tabled below:

 

 Hole_ID  Northing  Easting  RL   Dip/Azi  Depth  From  To  Width  Grade Li(2)O
 MT001    1255398   664157   330  -90/000  40     6     40  34     1.70
 MT002    1255388   664200   330  -90/000  40     4     40  36     1.65
 MT003    1255380   664249   330  -60/195  63.2   21    47  26     1.69
 MT004    1255355   664289   330  -90/000  40     3     40  37     2.17
 MT005    1255351   664321   330  -90/000  40     8     40  32     1.67
 MT006    1255327   664400   330  -90/000  40     26    40  14     1.62

Notes:   Drill holes are diamond core drill holes.  Drill holes have been
sampled on a geological basis and at a maximum of 1.0m downhole width.
Samples have been cut with a diamond saw and sampled on a representative
basis. Drill hole collars are surveyed using a differential GPS with sub
1-metre accuracy, coordinate system WGS84 - Zone 29N, and all holes are
surveyed down-hole for dip and azimuth on approximately 30m intervals. All
drill holes are geologically logged, and sampling for analysis is based on
geological boundaries.  Samples analysed by ALS Global. Assay results are
reported as Li% and converted to Li(2)O% by a factor of 2.153.  Intersections
are reported using geological boundaries for logged pegmatite, with a nominal
0.5%Li(2)O lower-cut-off and allowing for a maximum of 2m internal dilution.

 

A full summary of the metallurgical testing programme will be provided when
results are received.  Metallurgical testwork is being completed at
laboratories in China, Australia and South Africa to allow comparison and
confirmation of best process.

Boumou Prospect

Final assay results have been received for the 7 RC drill holes for a total of
1,344m that were completed at the Boumou prospect in the recent drilling
campaign.  The drilling has successfully targeted extensions to the west of
the defined resource zone with multiple wide high grade mineralised pegmatite
veins intersected.

Final assay results have been received for all drill holes and confirm the
presence of wide, high grade lithium mineralisation with all significant
results for the drilling tabled below:

 

 Hole_ID   Northing  Easting  RL   Dip/Azi  Depth  From  To    Width  Grade Li(2)O
 KLRC193   1255768   655293   330  -50/180  190    55    79    24     1.13

                                            incl   55    63    8      1.37
                                                   113   118   5      1.31
                                                   125   128   3      1.37
                                                   161   164   3      1.17
 KLRC194   1255560   655299   330  -50/000  183    45    57    12     1.14

                                            incl   49    57    8      1.36
 KLRC196B  1255683   655083   330  -50/180  191    81    85    4      1.49
                                                   126   134   8      1.25
                                                   146   148   2      0.96
                                                   166   173   7      1.13
 KLRC197   1255613   655083   330  -50/180  162    72    81    9      1.26
                                                   93    129   36     1.29
                                                   155   157   2      0.80
 KLRC198   1255543   655083   330  -50/180  174    56    58    2      0.98
                                                   78    129   51     1.08

                                            Incl   89    95    6      1.50

                                            incl   112   121   9      1.77
                                                   137   146   9      1.24
 KLRC199   1255473   655083   330  -50/180  210    42    73    31     1.23
                                                   85    87    2      0.99
                                                   101   108   7      1.20

Notes:  Drillholes KLRC197, KLRC198, KLRC199 previously reported 19 April
2023.  Drill holes are RC drill holes.  Drill holes have been sampled on a
1.0m basis with samples collected via a riffle split system. Drill hole
collars are surveyed using a differential GPS with sub 1-metre accuracy,
coordinate system WGS84 - Zone 29N, and all holes are surveyed down-hole for
dip and azimuth on approximately 30m intervals. All drill holes are
geologically logged, and sampling for analysis is based on geological
boundaries.  Samples analysed by ALS Global. Assay results are reported as
Li% and converted to Li(2)O% by a factor of 2.153.  Intersections are
reported using geological boundaries for logged pegmatite, with a nominal
0.5%Li(2)O lower-cut-off and allowing for a maximum of 2m internal dilution.

 

The Boumou prospect has a current Inferred Resource that remains open along
strike, and this recent phase of drilling indicates a potential strike length
exceeding 750m and up to 1km, providing potential for significant growth in
the Boumou prospect defined resource.

 

The next stage of exploration at Boumou is to undertake infill drilling to
provide geological control on the interpretation of the lithium mineralised
pegmatite veins as well as continue the extension drilling to continue to
expand the prospect as much as possible.

 

Bougouni South Prospect

At the Bougouni South prospect a total of 6 RC drill holes for 989m were
completed as part of the Company's recent drilling campaign.  The programme
has intersected consistent wide pegmatite veins with individual veins up to
48m in downhole width and a cumulative thickness of pegmatite in hole up to
91m in drill hole MDRC135. The geological logging indicates fine to medium
grained mineralisation possibly most suited to flotation processing. The
drilling programme has extended the known pegmatite veins to over 500m in
strike length and remains open along strike.

 

All assay results for the programme have been received, and while the results
confirm that the pegmatite veins are mineralised, the grade is generally lower
tenor.  The review of the geology indicates potential for large veins to be
defined and an economic assessment of the prospect is required to determine if
the metallurgical recovery of spodumene concentrate, and the nature of the
veins will support open pit mining.

 

The next phase of exploration proposed is a series of diamond drillholes to
allow evaluation of the geological controls on the pegmatite veins and supply
samples for initial metallurgical testwork.  The prospect is located close to
the planned processing facility and infrastructure and may prove to be
complementary to the mining development.

Final assay results have been received for all drill holes and significant
lithium mineralised intersections are tabled below:

 Hole_ID   Northing  Easting  RL   Dip/Azi  Depth   From  To    Width  Grade Li(2)O
 MDRC133   1259108   664447   330  -50/000  187     43    47    4      0.88
                                                    58    60    2      1.05
                                                    72    74    2      1.18
                                                    135   142   7      0.46
                                                    135   137   2      0.84
 MDRC134   1258917   664300   330  -50/000  222     153   165   12     0.77
                                            incl    159   164   5      1.27
 MDRC135   1258877   664200   330  -50/000  220     69    108   39     0.93

                                            Incl    71    82    11     1.14

                                            Incl    85    90    5      1.05

                                            incl    101   107   6      1.48

 MDRC136B  1258861   664201   330  -60/000  93      37    48    11     0.80

                                            Incl    44    48    4      1.33

 MDRC137   1258850   664102   330  -50/000  252     44    46    2      1.31
                                                    62    64    2      0.87
                                                    105   113   8      1.05
                                                    119   126   7      0.83

                                            incl    122   126   4      1.11

                                                    188   190   2      1.24

Notes:  Drill holes are RC drill holes.  Drill holes have been sampled on a
1.0m basis with samples collected via a riffle split system. Drill hole
collars are surveyed using a differential GPS with sub 1-metre accuracy,
coordinate system WGS84 - Zone 29N, and all holes are surveyed down-hole for
dip and azimuth on approximately 30m intervals. All drill holes are
geologically logged, and sampling for analysis is based on geological
boundaries.  Samples analysed by ALS Global. Assay results are reported as
Li% and converted to Li(2)O% by a factor of 2.153.  Intersections are
reported using geological boundaries for logged pegmatite, with a nominal
0.5%Li(2)O lower-cut-off and allowing for a maximum of 2m internal dilution.

 

Qualified Person's Statement

 

The Mineral Resource estimates have been prepared by Dr Matthew Cobb who is a
Member of the Australian Institute of Geoscientists.  Dr Cobb is a Principal
Resource Consultant with CSA Global and 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 consents to the inclusion in this 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
(http://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/Vivek Bhardwaj/Nick Harriss                             Tel: 020 3328 5656

 SP Angel Corporate Finance LLP, Financial Adviser & Joint Broker

 John Mackay/Adam Cowl                                                 Tel: 020 3470 0470

 Canaccord Genuity Limited, Joint Broker

 James Asensio/Gordon Hamilton                                         Tel: 0207 523 4680

 St Brides Partners Ltd, Financial PR

 Susie Geliher/Ana Ribeiro                                             Tel: 020 7236 1177

 

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