REG - Kodal Minerals PLC - Bougouni Electrical Plant Update

Kodal MineralsAnnouncement

20/01/2025 07:00

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RNS Number : 9285T  Kodal Minerals PLC  20 January 2025

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK Market Abuse
Regulation.

 

Kodal Minerals Plc / Index: AIM / Epic: KOD / Sector: Mining

20 January 2025

Kodal Minerals plc

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

 

Power Generation Plant Installed and Operational at Bougouni Lithium Project

 

Kodal Minerals, the mineral exploration and development company, is pleased to
announce that at its flagship Bougouni Lithium Project in Southern Mali
("Bougouni" or the "Project") the power generation plant is now operational
and this "Power-On" milestone paves the way for full commissioning of the
Stage 1 Dense Media Separation ("DMS") processing plant in the coming weeks.
The construction and commissioning of the DMS processing plant at the
Ngoualana open pit mine at the Project continues ahead of lithium Spodumene
production, which is expected in the first quarter of 2025.  The Project is
fully funded through the US$117.5m Hainan funding transaction (as announced by
the Company on 15 November 2023). This funding transaction includes a US$100m
investment into Kodal Mining UK Limited ("KMUK"), a company owned 51% by the
Hainan Group and 49% by Kodal, which is the developer of the Project.

 

Highlights:

·    The power generation plant was efficiently installed at Bougouni and
this important "Power-On" milestone paves the way for full commissioning of
the DMS processing plant.

·    Commencement of commercial production is on track for the first
quarter of 2025 and construction costs remain within the US$65 million capital
development budget.

·    Both crushing modules are now installed, and all drives have been
cabled to the power plant via the motor control centre ("MCC").

·    The electrical cabling to the various drives within the DMS
processing plant and cable terminations at the MCC are close to completion.

·    Erection of structural steelwork at the DMS processing plant is fully
completed.

·    Electrical cabling in the field, motor terminations and piping
installations are nearing completion in advance of full commissioning.

·    Permits for the pumping of water from the Baoulé River are in place,
and the water pump and piping system are now operational.

·    All equipment, materials and spares are on site.

·    Open pit mining activities at the Ngoualana deposit continue to
advance ahead of commissioning. At last count, a total of just over 240,000
tonnes of ore with average grade of 1.17% Li(2)O, were mined in preparation
for commissioning, representing almost three months of ore processing.

·    The on-site laboratory is now fully operational.

 

Bernard Aylward, CEO of Kodal Minerals, remarked: "The team on site has
performed fantastically to successfully finish the installation of the power
generation plant and achieve the important "Power-On" milestone at Bougouni.
Piping and electrical cabling has also continued to advance, and we are
looking forward to commissioning of the DMS processing plant in the coming
weeks ahead of first commercial production later this quarter. Achieving this
crucial "Power-On" milestone is a critical step for Kodal and its aim of being
one of the first Lithium producers in West Africa and the first London-listed
lithium producer. We look forward to delivering on these firsts and continuing
the growth of the Company."

 

FURTHER INFORMATION

Construction and Commissioning

A fully functional power generation plant is the first important step in the
DMS processing plant commissioning phase. It provides the means to test all
the drives, electrical and instrumentation systems within the DMS processing
plant. The power plant generators arrived on site in mid-December 2024, and
the site team worked tirelessly to successfully complete the installation,
cabling and testing of the equipment, to achieve this important "Power-On"
milestone.

 

Both crusher modules are now fully installed, and cabling for all drives has
been terminated at the MCC. Both modules can now be operated via the power
generation plant and provides the Company with the opportunity to build a
stockpile of crushed ore in advance of the full commissioning of the DMS
processing plant.

 

Construction is close to completion and design verification checks have
commenced. This will be followed by directional testing of all the drives via
the MCC. Once all drives are operational and instruments tested, the DMS
processing plant will be commissioned using water and air to ensure all
systems and control loops operate as designed.

 

When these tasks are complete, full commissioning will start with the
introduction of ore.

 

The water supply system has been commissioned and is now operational. This
process included obtaining the permit from local authorities, installation of
the Baoulé River water pump and piping, and completion of the raw water pond
adjacent to the plant.

 

Mining

Mining activities have continued to progress smoothly. A total of just over
240,000 tonnes of ore, grading on average 1.17% Li(2)O, has been mined in
preparation for commissioning. That represents almost three months of ore
processing and provides the advantage that the DMS processing plant
commissioning will not be hampered by insufficient mined ore.

 

There are also just over 50,000 tonnes of low-grade ore (grading circa 0.40%
Li(2)O) that has been stockpiled separately from the high grade. The low-grade
ore will be used initially during the early commissioning phase to bed down
the circuit performance before introducing high grade ore. Longer term, the
low-grade stockpile will provide a buffer that can be blended with the
high-grade ore in the unlikely event that mining operations are impacted. The
mining plan objective is to ensure that mined ore is always a step ahead of
processing rates throughout the mine's life.

 

The on-site laboratory is now operational and will improve the efficiency of
ore mining in the pit as grade control samples will not need to be sent
off-site for analysis. The laboratory will also provide all testing required
for the operation of the DMS plant.

 

**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/Vivek Bhardwaj                                          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/Charlie Hammond                                         Tel: 0207 523 4680

 Burson Buchanan, Financial PR

 Bobby Morse/Oonagh Reidy                                              Tel: +44 (0)20 7466 5000

                                                                       kodal@buchanancomms.co.uk

 

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.

 

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