REG - Kodal Minerals PLC - Gold Exploration Update & Bougouni Lithium Project

Kodal MineralsAnnouncement

14/12/2021 07:05

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RNS Number : 5695V  Kodal Minerals PLC  14 December 2021

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

 14 December 2021

 

Kodal Minerals plc

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

 

Update on Gold Exploration and Activity at Bougouni Lithium Project

 

Kodal Minerals, the mineral exploration and development company, is pleased to
provide this update on the recent activities at the Fatou Gold project
drilling for gold mineralisation and the ongoing activity at the Bougouni
Lithium project, both located in southern Mali.

 

Highlights

Gold Exploration

Fatou Gold project

·    Initial reverse circulation ("RC") drilling programme consisting of
11 RC drill holes for 1,242m completed with initial programme focussed on the
northern Fatou area where historic NI43-101 resource estimate had previously
been completed around an area of significant artisanal workings.

·    Kodal is seeking to validate the width and tenor of mineralisation in
this area and drilling has indicated zones of sulphide mineralisation as well
as highlighting extensions of artisanal workings.

·    All samples have been dispatched to laboratory for analysis and
results are expected in January 2022.

 

Nielle Gold project

·    Kodal has completed community follow-up at the Nielle project in
northern Cote d'Ivoire with consultation with local farmers to access areas
for drilling in late December-January.

·    Kodal is expected to complete a programme of follow-up drilling as
soon as possible to infill and extend the gold mineralised intersections from
previously announced initial drilling including:

i.      13m at 5.07g/t gold from 12m in drill hole NLRC035

- including 3m at 16.33g/t gold from 13m.

ii.     5m at 15.42g/t gold from 7m in drill hole NLRC032

- including 2m at 31.54g/t gold from 8m

(all results previously announced on 11 October 2021)

 

Bougouni Lithium Project

·    Following grant of the Mining Licence, as announced on 8 November
2021, Kodal has commenced social impact and land usage studies for the
community inclusion package for the mine development.

·    Kodal undertaking a review of processing plant and update of proposed
capital costs with major Chinese contracting and construction firm.  A report
of proposed plant design and upgrades to cost estimates is expected by the end
of January 2022.

 

Bernard Aylward, CEO of Kodal Minerals, commented: "Kodal is now working on
multiple projects across southern Mali and Northern Cote d'Ivoire, including
working towards construction at our fully permitted Bougouni Lithium project
and proving up what we believe will be a very significant global resource
inventory across our gold assets.

 

"This initial drilling programme at the Fatou Gold project is very exciting.
The initial target area has widespread artisanal workings and the historic
drilling has not been able to test fully the extent of the gold mineralised
zone. Our initial drilling is planned to confirm areas of known mineralisation
and attempt to extend to the north along strike.  Our geologists are
reporting zones of sulphide mineralisation that is expected to correlate to
gold mineralisation and reporting new zones away from the artisanal
workings.  All our samples have been dispatched to the laboratory and results
are expected in January 2022.

 

"Kodal is now in the position of being fully permitted to begin development
activities at the Bougouni Lithium project following the granting of our
Mining Licence.  We continue to focus on the community and environmental
aspects of our development activity in the region and are building on our
strong relationships as we move to finalise community development and
compensation packages as part of our mine development.  In addition, we have
been undertaking a review of our existing Feasibility Study to upgrade costs
and estimates to reflect current expectations and best practices.  This work
has included a review of our proposed treatment plant plans undertaken with a
major Chinese consulting and construction group, to update our original
capital estimates and look to improve our flowsheet and metallurgical
recoveries.  Results of this important work are expected by the end of
January 2022.

 

"The lithium spodumene market, and in general the lithium-ion battery market,
is continuing to show very strong market sentiment.  Kodal notes the
increasing demand and price for the spodumene concentrate type it intends to
produce and how the current market price exceeding US$2,300 per tonne of
concentrate compares very favourably with the price of US$680 per tonne used
as the initial price in our 2020 Feasibility Study. We have outlined a work
programme required to update our feasibility study and increase confidence in
our existing mineral resource estimate to allow a final investment decision in
the first half of 2022."

 

FURTHER INFORMATION

 

Drilling Programme

Kodal has completed an initial RC drilling programme at the Fatou Gold project
consisting of 11 drill holes for 1,242m completed.  Drillholes were unable to
reach planned depth in five (5) of the eleven (11) completed holes due to the
presence of artisanal workings and poor ground conditions.  Initial
geological logging of the drillholes has confirmed the presence of sulphide
mineralisation and alteration of host rock geology that may indicate the
presence of gold mineralisation.  All assay results are pending.

 

The drilling programme and ongoing geological review of the Fatou project
highlight a very extensive structural zone of gold mineralisation that
currently remains open to the north and south.  Kodal will review additional
work following receipt of all assay information, however this remains a very
prospective project and historical exploration activity has previously defined
a NI43-101 Mineral Resource estimate that Kodal is looking to validate and
expand through its exploration activities.

 

Fatou Gold project

The Fatou project consists of two concessions, the Fininko (also known as
Fatou) and Foutière concessions, located 280km south of Bamako, the capital
city of Mali (refer Figure 1).  The project forms a contiguous landholding
exceeding 300km(2) and has been acquired through agreements with local vendors
(refer announcement 17 December 2020).

 

Geological Setting

The Fatou project is hosted within the Birimian sequence of West Africa, a
sequence of mafic volcanic rocks separated by sedimentary basins and are
intruded by granitic rocks of varying composition.  The geology at Fatou
project is mostly sedimentary sequences interlayered phyllite and siltstone
along with abundant volcaniclastic and tuffaceous strata. These rocks are
intruded by three phases of granodiorite occurring as small plutons and
stocks. Minor mafic and felsic dikes occur as tabular stocks. The geology is
weathered to a depth of 75m (typical depth between 35m and 50m) and laterite
capped mesa are formed with the laterite extending for several metres' depth.

 

The dominant structural feature observed at the Fatou project is a major
northwest-trending shear zone which aligns the gold targets, local shear
fabrics, folds, cross faults, low angle faults, planar fabrics, and
crenulation. The northwest shears are inferred to be steeply dipping to
slightly east-dipping and further low-angle structures have been interpreted
in drill hole modelling that dip to the east.

 

**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, Adam Cowl                                          Tel: 020 3470 0470

 St Brides Partners Ltd, Financial PR                            Tel: 020 7236 1177

 Susie Geliher

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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