REG - Kodal Minerals PLC - Bougouni Exploration & Extension Drilling Update

Kodal MineralsAnnouncement

25/06/2024 07:15

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RNS Number : 7467T  Kodal Minerals PLC  25 June 2024

The information contained within this announcement was 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

25 June 2024

Kodal Minerals plc

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

 

Bougouni Lithium Project Exploration and Extension Drilling Update:

Initial Boumou Assay Results Confirm Extension of Wide, High-Grade
Mineralisation

Ngoualana Mine Construction Update

 

Kodal Minerals, the mineral exploration and development company, is pleased to
provide an update on the initial drilling assay results returned at the Boumou
prospect located within the Bougouni Lithium Project in Mali.  The assay
results are from reverse circulation ("RC") drill holes completed in April and
May 2024 targeting the strike and depth extension of the new zones defined in
the March 2023 RC drilling programme. These new zones were incorporated into
the 14 November 2023 Mineral Resource estimate (MRE) for the prospect, which
included 13.1 million tonnes ("Mt") at 1.04% of Li(2)O resource at the Boumou
Prospect.

 

The results confirm further extensions to the Boumou prospect with wide,
high-grade lithium mineralised intersections hosted by spodumene rich veins.
Additional assay results for the RC drilling programme are pending, and
diamond core drilling is continuing onsite to test the prospect further, with
results expected in due course.

 

Highlights:

·    Wide, high-grade extensions returned at the Boumou Prospect include:

o 52m at 1.51% Li(2)O from 175m in drill hole KLRC210;

o 66m at 1.26% Li(2)O from 72m,

Including 20m at 1.74% Li(2)O from 87m, and

                   26m at 1.31% Li(2)O from 179m in drill
hole KLRC211;

o 32m at 1.11% Li(2)O from 93m in drill hole KLRC212; and

o 22m at 1.08% Li(2)O from 169m in drill hole KLRC215

·    Total of 18 RC drill holes for 3,234m completed, with 2,129 samples
submitted for assay.  Intersections reported are for 10 drill holes and 1,200
assay results, representing approximately 60% of the 2024 drilling programme -
further results expected in due course

·    Current drilling campaign has confirmed an increased strike length of
the Boumou prospect pegmatite bodies to 970m, remaining open along strike

·    Diamond core drilling is continuing at the Boumou prospect to provide
detailed geological information as well as samples for future metallurgical
test work and geotechnical logging for open pit optimisation parameters.

 

 

 

Detailed information on the drilling results is provided further below.

 

Bernard Aylward, CEO of Kodal Minerals, remarked: "The Boumou prospect at our
flagship Bougouni Lithium Project continues to exceed our expectations and
these new wide, high-grade intersections provide further support for the
interpretation of the continuity of the pegmatite mineralisation, as defined
in the March 2023 drilling campaign.  The extension and definition of the
Boumou prospect continues to be the highest priority for the exploration
drilling, and the potential to define further coarse grained mineralisation
suitable to dense media separation ("DMS") treatment may provide the
opportunity to further extend the current 4-year life of the Stage 1 Ngoualana
DMS treatment plant currently in construction

 

"The diamond drill core programme is continuing at Boumou and our exploration
 team is reviewing a metallurgical testwork programme to plan for the
optimisation of the Stage 2 floatation design and optimise the mining schedule
with Boumou and Sogola-Baoule Prospects."

 

Ngoualana mine construction update

 

The 2024 drilling programme is concurrent with the building of the Ngoualana
mine and DMS processing plant for Stage 1 of the Bougouni Project, where
significant progress continues.  Current site activity includes the civil
concrete work for the footings of the DMS and crushing circuits, the
preparation of the project office and site area, as well as the completion of
topsoil stripping for the commencement of the Ngoualana open pit
construction.  In addition, the DMS units, crushing circuit, steelwork and
other items are currently in transit to the Abidjan Port in Côte d'Ivoire
from China, and are expected to arrive at Bougouni in the coming weeks.  A
full update on the Ngoualana development is expected to be provided in late
July 2024.

 

FURTHER INFORMATION

Boumou Prospect

At the Boumou prospect, 18 RC drill holes for a total of 3,234m were completed
in this current drilling campaign.  The drilling targeted further westward
extensions of the wide pegmatite bodies intersected in the March 2023 drilling
campaign and the updated Mineral Resource estimate which currently is 13.1Mt
at 1.04% Li(2)O.

This current drilling campaign has confirmed a strike length of 970m, marking
an additional 470m from previous results, and remains open along strike.  A
summary table of the initial mineralised intersections for the assay results
received to date is presented below:

 Hole ID  From (metres)  To (metres)  Width (metres)  Grade Li(2)O (%)
 KLRC210  95             97           2               1.50
          104            105          1               1.07
          167            170          3               0.86
          173            225          52              1.51
 KLRC211  72             138          66              1.26
           Incl 87       107          20              1.74
          179            205          26              1.31
 KLRC212  79             83           4               1.43
          93             125          32              1.11
          130            132          2               1.23
 KLRC215  113            122          9               1.18
          126            152          26              0.69
          162            165          3               1.07
          169            191          22              1.08

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. 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 internal dilution in zones of broad
pegmatite mineralisation.

The assay results received to date are for 10 of the completed RC drill holes
and 1,200 samples tested, representing approximately 60% of the programme.  A
full results table of all RC drilling will be provided once all assay results
have been received.

Diamond core drilling is ongoing to provide detailed geological information to
support the interpretation of the mineralised zones.  The initial geological
logging and comparison of the diamond drill core and the logging of the RC
drill holes has confirmed the continuity of the pegmatite veins and
highlighted the coarse nature and coarse spodumene mineralisation.

 

For further information, please visit www.kodalminerals
(http://www.kodalminerals.com) .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/Ana Ercegovic                                           Tel: 0207 523 4680

 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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