REG - Kodal Minerals PLC - Bougouni Lithium Project Mineral Resource Update

Kodal MineralsAnnouncement

14/11/2023 07:15

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RNS Number : 3714T  Kodal Minerals PLC  14 November 2023

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

14 November 2023

Kodal Minerals plc

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

 

Bougouni Lithium Project Mineral Resource Update:

Total Resource increased to 31.9 Mt at 1.06% Li(2)O

 

Kodal Minerals, the mineral exploration and development company focused on
lithium and gold assets in West Africa, announces a new JORC Mineral Resource
estimate (MRE) for the Bougouni Lithium Project located in southern Mali
("Bougouni") of 31.9 million tonnes (Mt) at 1.06% Lithium Oxide (Li(2)O), an
increase of over 40% from the previous Mineral Resource completed in 2019.
The significant increase is specific to the Ngoualana and Boumou deposits
following the drilling programmes completed in early 2023.

 

The updated Mineral Resource estimate has been prepared as part of the
development plans for Bougouni. As previously announced, the Company plans for
a two stage development strategy: Stage 1 through processing ore from the
Ngoualana deposit through a dense media separation ("DMS") process plant; and
Stage 2 through processing ore from the Boumou and Sogola-Baoulé deposits
through a flotation plant.

 

Highlights

·    The 40% increase in Bougouni's spodumene resource adds 10.6Mt to
bring the overall MRE to 31.9Mt at 1.06% Li(2)O following 3,230 metres of
RC/diamond drilling during 2023.

·    New JORC Mineral Resource estimates have been prepared for the Boumou
and Ngoualana prospects:

o  Boumou:             13.1Mt at 1.04% Li(2)O, an increase of
236% from the 2019 estimate

(Boumou Resource reported using a 0.75% Li(2)O lower cut-off, no top cut-off)

o  Ngoualana:         6.7Mt at 1.00% Li(2)O, an increase of 9% from
the 2019 estimate

(Ngoualana MRE reported using 0.5% Li(2)O lower cut-off, no top cut applied)

The MRE update also improves Kodal management's confidence in the previously
defined resource at the Ngoualana prospect ahead of the proposed DMS mining
development.

·    Sogola-Baoulé prospect has a resource of 12.2Mt at 1.1% Li(2)O,
which is unchanged from the 2019 resource estimate, and the next phase of
drilling will include additional metres with potential to expand
Sogola-Baoulé.

·    Boumou prospect remains open along strike and drilling is planned to
commence in late November 2023 to target an additional 750m strike length.

·    Ngoualana resource is undergoing open pit optimisation and the mine
design is being updated to capture the increased resources, and to support the
final planning of the Ngoualana prospect's DMS development.

·    The next drilling campaign will commence imminently, focussing on
further resource definition, infill and exploration drilling at Boumou and
Sogola-Baoule prospects, as well as those not included in the MRE to date
including Kola and Bougouni South, all within the current Bougouni mining
licence.

 

Commenting on the 40% increase in Bougouni's MRE, Bernard Aylward, CEO of
Kodal Minerals, stated: "The significant increase in Bougouni's lithium
endowment is a further step towards becoming a West African spodumene producer
of substance and scale. With the results from the latest drilling campaign
delivering over 10Mt of resource, we are looking forward to bringing Bougouni
into production at the end of 2024, as well as ramping up the drilling
programme to include infill and extension definition drilling, and uncovering
additional discoveries within our extensive mining licence.

 

"The drilling campaign completed by Kodal between January and May this year
was the first programme conducted at the Bougouni Lithium Project since
2019.  The results of the drilling programme confirm our positive view of the
prospectivity within our project area, while the updated MRE highlights the
potential for further resource growth at the project through continued
drilling of our priority targets.  The Boumou prospect has been significantly
expanded by this recent drilling programme, and we will be returning in
November 2023 to seek to extend the resource area further as well as
undertaking infill and definition drilling to support future mine planning.

 

"The Ngoualana prospect resource has confirmed and expanded the 2019 resource
estimate, and the new model has been prepared with a focus on the bulk
commodity mining opportunity.  This new model seeks to maximise the recovery
of the pegmatite mineralisation during the mining process rather than
attempting to selectively mine higher grade ore that may result in leaving
mineralisation behind.

 

"We are currently planning the next phases of extension and definition
drilling at the Bougouni Lithium Project with the Boumou prospect being a
clear priority. However, the Sogola-Baoulé prospect is also a key expansion
target as we look to build a major resource base to support the development of
the phase 2 flotation plant.  The aim of the programme is to demonstrate the
potential to bring forward the development of the flotation plant as soon as
possible after the DMS plant has been fully commissioned and maximise the
opportunity we have at the Bougouni Lithium project."

 

Further Information

 

Mineral Resource Estimate

This updated MRE has been completed by independent consultants ERM (formerly
CSA Global).  Kodal supplied a geological database and verified the
geological interpretation that was used to define the lithium mineralised
pegmatite bodies.

 

Resource updates were completed for the Ngoualana and Boumou prospects
following additional reverse circulation ("RC") and diamond drilling.  The
updated JORC compliant Mineral Resource estimate for the Bougouni Lithium
project, including the Sogola-Baoulé, Ngoualana and Boumou prospects is
tabulated below:

 

 Prospect        Indicated                          Inferred                           Total
                 Tonnes  Li(2)O%  Contained Li(2)O  Tonnes  Li(2)O%  Contained Li(2)O  Tonnes  Li(2)O%  Contained Li(2)O

                 (Mt)    Grade     (kt)             (Mt)    Grade     (kt)             (Mt)    Grade     (kt)
 Sogola-Baoulé   8.4     1.09     91.9              3.8     1.13     42.8              12.2    1.10     134.8
 Ngoualana       3.2     1.19     38.0              3.5     0.82     28.5              6.7     1.00     66.7
 Boumou                                             13.1    1.04     135.8             13.1    1.04     135.8
 TOTAL           11.6    1.12     129.9             20.3    1.02     207.1             31.9    1.06     337.2

Notes:  Sogola-Baoulé resource estimate unchanged from 2019.  A 0.5% Li(2)O
lower cut-off applied, and resource wireframe defined by a 0.3% Li(2)O
selected boundary.  Estimate completed utilising Surpac software.

Ngoualana resource estimate reported utilising a 0.5% Li(2)O lower cut-off.
All pegmatite mineralisation modelled including zones of internal waste
material for a fully diluted model. The geological model of the mineralisation
is completed using Leapfrog modelling software.  The Mineral Resource
estimation is completed using Surpac software with grades estimated by
Ordinary Kriging.

Boumou resource reported using a 0.75% Li(2)O lower cut-off. All pegmatite
mineralisation modelled including zones of internal waste material for a fully
diluted model. The geological model of the mineralisation is completed using
Leapfrog modelling software.  The Mineral Resource estimation is completed
using Surpac software with grades estimated by Ordinary Kriging.

Figures in table may not sum due to rounding.  The contained metal is
determined by the estimate tonnage and grade.

 

 

The JORC code Table 1 with details of the resource estimate parameters is
available to view on the Company's website at www.kodalminerals.com
(http://www.kodalminerals.com)

 

 

Exploration and Development Programme

At the Ngoualana prospect, the Company is continuing with the rapid
development of the Bougouni Lithium Project with a focus on the development of
the proposed DMS plant to process the coarse grained mineralisation identified
within this prospect.  The updated mineral resource estimate for the
Ngoualana prospect is currently undergoing an update to the open pit
optimisation to finalise the open pit design and results are expected later
this year.

 

Kodal is currently finalising an extension and definition drilling programme
for the Boumou prospect where this new resource has highlighted a major
increase in the previous estimate and in particular has confirmed the
potential for further significant additional mineralisation along strike and
at depth.   The drilling programme will consist of:

o  RC drilling to continue to target strike extensions over an additional
750m to the west, as well as new targets identified to the east of the
prospect

o  Diamond drilling to provide geological and structural control features of
the pegmatite veins which in turn will enhance success of ongoing targeting

o  Diamond drilling to provide metallurgical samples for testing to confirm
the recoveries and possible material to supplement the proposed DMS plant
and/or future flotation plant, which in both cases will support increased life
of mine potential

o  Diamond drilling to provide geotechnical information for future open-pit
mining.

 

The Company anticipates that the Boumou and Sogola-Baoulé region will
continue to demonstrate the potential for the development of the proposed
2Mtpa flotation plant (Phase 2) outlined in the Company's Feasibility Study
(refer to Kodal's announcement of 27 January 2020).

 

In addition to the detailed programme at the Boumou prospect, the Company
intends to undertake further drilling at the Kola, Bougouni South and
Sogola-Baoulé prospects. Both Kola and Bougouni South do not currently figure
in the Mineral Resource estimate and provide further potential for resource
increase.

 

 

Qualified Person's Statement

The Mineral Resource estimate for the Sogola-Baoulé prospect has been
prepared by Dr Matthew Cobb who is a Member of the Australian Institute of
Geoscientists.  Dr Cobb completed the resource estimation in 2019 and the
resource remains unchanged from that time.  Dr Cobb 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 has consented to the inclusion in this announcement of the
matters based on his information in the form and context in which it appears.

 

The information in this announcement that relates to the Mineral Resource
estimates for Ngoualana and Boumou prospects is based on information compiled
by Mr Phil Jankowski, who is a Fellow of the Australasian Institute of Mining
and Metallurgy and a full-time employee of ERM (formerly CSA Global).  Mr
Jankowski 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 Jankowski
consents to the inclusion in the 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) .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

 Buchanan, Financial PR

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

                                                                       kodal@buchanancomms.co.uk

Glossary of Technical Terms

 "cut off"                            the lowest grade value that is included in a resource statement.  It must
                                      comply with JORC requirement 19: "reasonable prospects for eventual economic
                                      extraction" the lowest grade, or quality, of mineralised material that
                                      qualifies as economically mineable and available in a given deposit.  It may
                                      be defined on the basis of economic evaluation, or on physical or chemical
                                      attributes that define an acceptable product specification
 "Inferred" or "Inferred Resource"    that part of a Mineral Resource for which tonnage, grade and mineral content
                                      can be estimated with a low level of confidence.  It is inferred from
                                      geological evidence and assumed but not verified geological and/or grade
                                      continuity.  It is based on information gathered through appropriate
                                      techniques from locations such as outcrops, trenches, pits, workings and drill
                                      holes which may be limited or of uncertain quality and reliability
 "Indicated" or "Indicated Resource"  that part of a Mineral Resource for which tonnage, densities, shape, physical
                                      characteristics, grade and mineral content can be estimated with a reasonable
                                      level of confidence.  It is based on exploration, sampling and testing
                                      information gathered through appropriate techniques from locations such as
                                      outcrops, trenches, pits, workings and drill holes.  The locations are too
                                      widely or inappropriately spaced to confirm geological and/or grade continuity
                                      but are spaced closely enough for continuity to be assumed
 "JORC"                               The Australasian Joint Ore Reserves Committee Code for Reporting of
                                      Exploration Results, Mineral Resources and Ore Reserves 2012 (the "JORC Code"
                                      or "the Code").  The Code sets out minimum standards, recommendations and
                                      guidelines for Public Reporting in Australasia of Exploration Results, Mineral
                                      Resources and Ore Reserves

 "Measured Resource"                  that part of a Mineral Resource for which tonnage, densities, shape, physical
                                      characteristics, grade and mineral content can be estimated with a high level
                                      of confidence.  It is based on detailed and reliable exploration, sampling
                                      and testing information gathered through appropriate techniques from locations
                                      such as outcrops, trenches, pits, workings and drill holes.  The locations
                                      are spaced closely enough to confirm geological and grade continuity
 "Mineral Resource"                   a concentration or occurrence of material of intrinsic economic interest in or
                                      on the Earth's crust in such form, quality and quantity that there are
                                      reasonable prospects for eventual economic extraction.  The location,
                                      quantity, grade, geological characteristics and continuity of a Mineral
                                      Resource are known, estimated or interpreted from specific geological evidence
                                      and knowledge. Mineral Resources are sub-divided, in order of increasing
                                      geological confidence, into Inferred, Indicated and Measured categories when
                                      reporting under JORC
 "MRE"                                Mineral Resource estimate

 "Mt"                                 million tonnes
 "Kt"                                 thousand tonnes
 "Reserve"                            the economically mineable part of a Measured and/or Indicated Mineral Resource
 "t"                                  tonne (= 1 million grams)

 

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