Kodal Minerals Share Discussion Threads

[polysale] 04/5/2018 08:22

Lithium Investing: Asian Supply Chain Races To Secure Lithium
May 3, 2018 10:23 PM ET
Livio Filice
Long-term horizon, Growth, momentum, Deep Value
(1,563 followers)
Summary
Strong lithium chemical pricing has pushed battery and material manufacturers to enter agreements with lithium explorers and producers.

Advanced junior exploration and early-stage lithium producers will benefit from the emerging demand scenario.

Lithium demand is expected to remain strong in Asia as China shifts towards new energy vehicles.

Highlight transactions between strategic Asian players and lithium explorers and producers.

It has become clear that the lithium supply chain has fallen behind the development curve, which is partially why lithium carbonate pricing has risen from $5,000 T / LCE to over $14,000 T LCE since 2015 (see Lithium Carbonate Price chart below). Chinese domestic pricing for the white material has been trending higher than outside of China pricing by a significant margin. In the same time frame, pricing inside China has increased from $10,000 T LCE to $25,000 T LCE. One of the more significant factors that has allowed for this spread is the fact that China, like Korea and Japan, is a large user of the white metal but is almost entirely reliant on imports of the white metal.

In my opinion, based on lithium prices remaining strong, large Chinese battery and material companies, along with strategic investment groups, will increasingly become interested in advanced junior exploration and early-stage lithium mining companies. I believe that these segments of the market are best-positioned to capitalize on near-term momentum in the lithium space. High lithium chemical prices, coupled with lithium supply security, will ensure that battery and material manufacturers continue to evaluate options throughout the supply chain.

As illustrated throughout this document, this investment thesis has already proven accurate, as a wave of Chinese investment has taken flight into securing lithium-producing assets along with greenfield projects. The flow of Chinese capital into the energy metals market is a clear indication that their new energy economy has being taking a long-term view on the supply chain. Investors looking to capitalize on China’s shift to new energy technologies should consider having exposure to early-stage lithium production and late-stage exploration assets, as these companies are best-positioned to bring meaningful supply to Chinese battery and material manufacturers over the next few years.

[cyrilsneer1] 03/5/2018 21:36

Edge, I think your going to be surprised by the JORC estimate. From the drill results I've collated I'd be disappointed if we are under 25mt at 1.5% lithium or above. Top that off with the additional finds from the last RNS and this share will be a good place to be come June\July.

[edgein] 03/5/2018 10:31

Cyril,

We'll just have to wait and see fella, there's lots more to come from SAV over that 10km+ of mineralised area. They just keep on finding the stuff its also low impurity and can produce concentrate from just simple grav and flotation for high recovery. Also have feldspar as a byproduct giving credits against the lith. Imo SAV will have a higher bulk tonnage supporting a larger mine. Overall longer term likely a larger resource over all. Yes as for KOD they've average higher grades, I'd imagine they'll average 1.3-1.4% in the JORC, however I'm hoping they get close to 10Mt at this point, am expecting somewhere between 5-10Mt here. Cannot see them getting close to SAV on 14Mt as SAV have widths in some holes of 90m+. KOD's best is around 40m. Both companies have high grade shallow lith discoveries with low impurities. Each has other merits, SAV have mining licence so are pretty much good to go after funding, KOD have offtake agreement. Both have their foot on the accelerator towards development. Both companies have other interesting assets besides the lith, both are likely to do very well over the next couple of years, I'm expecting multibags on both.

Regards,
Ed.

[cyrilsneer1] 02/5/2018 18:19

Edge, have to disagree with you on SAV having the best lithium results on Aim. Based on what I've seen the JORC resource on KOD should come up a lot higher than SAVs 1.1%. I hope they both do well none the less.

[edgein] 02/5/2018 08:14

Arry,

It will take a while to dig out and transport 5,000tn. But in the mean time they're fully funded to continue to drill and get to JORC. SAV for example haven't been drilling 12 months yet and have maiden JORC after about 6 months and a 50% increase reported on that today. KOD are the second in line for best lith assets on AIM after SAV, due to grade and thickness of their spodumene too. I know what you mean about 12bn though if he were to sell this would likely re-rate instantly to where it should be 0.5p+.

Regards,
Ed.

[arrynillson] 01/5/2018 17:40

Edgein - the bulk sampling seems to be taking a long time to be transported - do you think 12bn might offer up his Amazon Prime details to speed matters along - he seems a bit desperate these days!

[edgein] 01/5/2018 16:30

Cpap,

Thanks for the posts, there's certainly no shortage of the white stuff in KOD's licences. Every round of the campaign is throwing up more high grade spodumene and further strike extensions. Our secondary target at S-B is now almost as big as our main Ngou in terms of strike length if not thickness.

Regards,
Ed.

[cpap man] 01/5/2018 14:00

Kodal Minerals* (KOD LN) 0.17p, mkt cap £11.1m - Drilling indicates significant increase in potential high-grade lithium resource at Bougouni

Birimian Limited (BGS AU) A$0.54/sh, mkt cap A$123.3m –

Birimian Limited report assay results from recent drilling on the Bougouni lithium project in Mali.
The results from reconnaissance drilling at the Ngoualana prospect and also at Bougouni South project show high lithium grades and the presence of further pegmatite veins.
Ngoualana southern offset. Broad zone >26m interval.
Results from the KLRC094 hole show:
7m at 1.63% Li2O from 69m
1m at 1.02% Li2O from 80m
2m at 1.50% Li2O from 85m
4m at 1.62% Li2O from 90m
KLRC062B hole:

14m at 1.67% Li2O from 31m – drilled in December but not previously released
Bougouni South showing lesser thicknesses but with multiple intersections within each drill hole and still with good grades.
Results from the MDRC028 hole show:
2m at 1.05% Li2O from 89m
1m at 1.38% Li2O from 103m
4m at 1.68% Li2O from 110m
1m at 1.47% Li2O from 118m
MDRC029 hole show:

1m at 1.02% Li2O from 31m
2m at 1.12% Li2O from 75m
MDRC030 hole show:

1m at 1.19% Li2O from 21m
MDRC032 hole show:

2m at 1.44% Li2O from 150m
Sogola-Baoule: exploration drilling is ongoing with >600m strike identified:
Bulk sample for ~5,000t is about to start following recent upgrading of road access. Successful metallurgical results from the bulk sample are important for any lithium to move ahead.
Early work done by Kodal and its Asian partner indicate the Bougouni project spodumene is good for concentration and for further processing for lithium extraction. Importantly, it appears to be relatively low in impurities and particularly in mica content.
Environmental: consultants completing preliminary social meetings as part of EIA for future mining application.
Birimian Limited: recently reported a near doubling of its JORC mineral resource estimate at its Goulamina lithium project. This is good news for Kodal as it strengthens the likelihood of the financing and construction of a hard-rock lithium mine next to Kodal’s likely higher-grade and potentially better quality lithium resources.
Birimian’s new resource is now 65mt at 1.43% Li2O vs 32.9mt at 1.37% Li2O. The Birimian statement shows 43.7mt (67% of the total) to grade 1.48% Li2O as an indicated resource with the remaining 21.3mt at 1.34% Li2O as inferred.
Conclusion: Kodal is working towards the production of a decent sized JORC lithium resource later this year. While we do not expect this to match the scale of the Birimian Limited JORC resource we hope it will demonstrate that Kodal has a project of economic scale and potentially better potential value in time.

*SP Angel act as Financial Advisor and broker to Kodal Minerals. A partner at share price Angel acts as Chairman to the company.

[cpap man] 01/5/2018 13:55

SP Angel . Morning View . Lithium bears fail to consider scale of rising demand



Lithium – Lithium bears fail to consider scale of rising demand

The irreversible transition from internal combustion-engine powered vehicles to electric has boosted the lithium price more than double in the last two years, with current trading prices around $23,000/t for battery-grade lithium carbonate. Prominent bears, including Morgan Stanley and Wood Mackenzie concluded in February that the market would enter 200,000 tonne surplus as an avalanche of new projects come online, driving prices down to $7,000 by 2021.
Threats of oversupply follow governmental approval in Chile for mine expansion which would ‘open up the floodgates’ to new lithium product. In January Chilean development agency Corfu and SQM struck a royalty deal in the Salar de Atacama, in which SQM is free to boost its production quota up to 216,000 tonnes in exchange for higher royalty rates equivalent to those paid by competitor Albemarle. It also permits SQM to partner with state miner Codelco to begin developing the second-largest lithium bearing deposit in Chile; the Maricunga.
While vast numbers of Junior exploration projects are also chasing buoyant lithium prices, the economic and technical challenges remain understated, leading to an industry focused on production from established majors across Australia, Chile, China and Argentina. Consequently, while production targets remain high, realizing the targets will delay output into the market.
A major factor affecting capital costs for lithium brines remains evaporation rates, determining the scale of evaporation ponds necessary to maintain grades for plant feed. Evaporation within ponds is extremely sensitive to climatic conditions, with residence times prior to plant processing extending 12-18 months and delaying first production. In addition, reagent costs associated with the removal of impurities such as potassium, boron, magnesium will are responsible for up to 50% operating costs, significantly driving up expenses for all but the purest brines.
Concentrate production from hard-rock spodumene project require subsequent refinement before use in value-added application such as batteries. Industry investment has focused conversion capacity in China, however maximum throughput across the facilities is creating an upgrade-bottleneck, leading to competitive purchase of only the highest-grade, lowest-conversion-cost spodumene.
Consumption of lithium from the electric vehicle market is rapidly accelerating, particularly with the Asian markets aggressively ramping up EV targets. Asian buyers are seeking to invest and lock up supply, with Chinese sales rising 40% to 700,000 electric cars in 2017. The nation represents over a quarter of the global EV market, and is estimated to own 40% by 2040 (IEA).
Global EV sales surpassed 2 million units in 2016, and Bloomberg New Energy Finance forecast 54% new car sales by 2040.
Tesla alone are targeting 1,000,000 vehicle sales by 2020. Rough estimations (~45kg per Tesla lithium carbonate) suggest 45,454 tonnes of lithium carbonate equivalent requirement, representing 19.5% global 2017 production.
Industry participants agree bear forecasts are unrealistic, as Pilbara Minerals CEO notes “I am firmly of the view that everyone, including Morgan Stanley, is grossly underestimating how quickly the market is moving on the demand side”. Benchmark Minerals Intelligence agrees, saying “Lithium is coming of age in a big way. It’s the core ingredient to 99% of electric vehicles and as a result, demand is going through the roof”.

[cpap man] 01/5/2018 09:07

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

1 May 2018

Kodal Minerals plc ('Kodal Minerals' or 'the Company')



Additional High Grade Lithium Mineralisation Confirmed at Exploration targets,

Bougouni Project, Southern Mali



Kodal Minerals plc, the mineral exploration and development company focussed on West Africa, is pleased to provide an update on the exploration drilling at the Company's Bougouni Lithium Project in Southern Mali ("Bougouni" or the "Project"). Final assay results have been received for the Project's reconnaissance drill testing at the Ngoualana prospect, which has returned high grade mineralisation to the south of the main pegmatite vein, and at the newly identified Bougouni South prospect, where assay results confirm the presence of mineralised pegmatite veins.



Highlights

· Ngoualana prospect southern offset returns high grade mineralisation. Broad zone over 26m interval returning intersections including:

§ 7m at 1.63% Li2O from 69m

§ 4m at 1.62% Li2O from 90m

· Ngoualana prospect exploration target open and to be drill tested in current campaign

· Bougouni South target confirms lithium mineralisation in reconnaissance drilling programme - follow-up drilling planned to commence in May

· Sogola-Baoule prospect extension of pegmatite vein to over 600m strike length confirmed in current drilling campaign, assay results pending

· Bulk sample about to commence with excavator on site and road access upgrades completed

· Environmental consultants Digby Wells completing preliminary social meetings as part of Environmental Impact Assessment for future mining application



Bernard Aylward, CEO of Kodal Minerals, said: "We are very pleased to be able to report these new lithium pegmatite veins intersected by our exploration drilling. The new zone at Ngoualana is very interesting as it is close to our existing main vein and these results open up a significant area for further testing. The target is a broad zone with multiple pegmatite veins that we will be looking to drill test rapidly to attempt to add further strike length and definition to this area. The identification of mineralisation at Bougouni South is also very encouraging and we are immediately moving one of our drill rigs to this prospect to determine its potential to host significant mineralisation.



"Our activity continues at Bougouni with the ongoing drilling campaign targeting the Sogola-Baoule prospect and field review of the drilling indicates that the pegmatite vein has now been extended to over 600m strike length and remains open along strike and at depth. This is an exciting time at our second advanced prospect at Bougouni.



"While drilling continues through to the beginning of the rainy season in June/July 2018, we have parallel activities underway with the mobilisation of a mining fleet to site to commence the large scale (5,000 tonne) bulk sampling , as well as our environmental assessment and metallurgical work continuing."

[skiboy10] 27/4/2018 03:35

27 April 2018BIRIMIAN CAPITALISES ON OUTSTANDING EXPLORATION SUCCESS AS IT DOUBLES GOULAMINA RESOURCEHIGHLIGHTS? Goulamina total Indicated and Inferred Mineral Resource has doubled in size following recent exceptional exploration success.? Revised Mineral Resource is 65Mt @ 1.43% Li2O for 931kt of Li2O.o Represents an increase of 32.1Mt @1.50% compared to the previouslyreported Mineral Resource.o Contained Li2O up from 451kt to 931kt.o New material added is generally higher grade, which has led to an increase in the average grade of the Mineral Resource.? Revised Mineral Resource is from Main, West and Sangar deposits only.? Yando, Danaya and Sabali pegmatites are yet to be included. There is a stronglikelihood of further significant increases in the Mineral Resource for the Project.? A further updated Mineral Resource estimate will be undertaken following completion of the current exploration program underway at Yando and Danaya.? Results exceed Birimian's expectations and validate the strategy to aggressively explore Goulamina. Results bode well for the maiden Ore Reserve and suggest improved project economics in the upcoming revised PFS.https://www.asx.com.au/asxpdf/20180427/pdf/43tj2zd489gzn0.pdf

[goneawol] 23/4/2018 22:42

An overview..

[djj2014] 23/4/2018 15:07

Has the corporate presentation been updated? I'm getting RNS alerts about it sent to my phone, but I can't actually see any new news?

[skiboy10] 23/4/2018 13:38

April 2018 Handouthttp://kodalminerals.com/wp-content/uploads/2018/04/KODAL_handout_April18_PRINT.pdf

[skiboy10] 23/4/2018 13:37

April 2018 Presentation http://kodalminerals.com/wp-content/uploads/2018/04/Kodal-Presentation-23.04.18-FINAL.pdf

[skiboy10] 21/4/2018 17:29

Another from lseToday 15:49 Price: 0.17I3LiP 78 postsUk investor show feedbackSome good stuff Bahadur. I have a sneaking feeling you sat next to me at the presentation. Second row on the far left? I came away with the same impressions, Bernard is a very genuine guy and clearly knows what he's doing. He mentioned that the presentation would be put up on Monday so the rest of you will get to see it too. Just to add to what you wrote, as I also asked him some questions after the presentation: I asked about funding, whether he was looking to the city or to SC and he said that he was keeping his options open. He mentioned that SC were very supportive of the work Kodal was doing but that he was still attending events and spending time in the city to build / maintain connections there. We talked about the site itself and some of the technicalities of mining it. He was very confident that the position lent itself to easy mining. I asked if there were any worries about the river as the high water delayed our drilling this year and he mentioned that he wasn't particularly concerned and that easy access to water was more of a plus. I also mentioned the group and our activities and he asked if I'd bought the rotten fruit to throw at him. I said that we were happy with the management of the project but that communication was a concern. We chatted about it a bit and he stressed that they're working hard but things take time. Particularly as they are taking the more unusual route of doing everything at the same time. Instead of drilling, then testing, then sampling, then environmental assessments sequentially they are all ongoing at once. We are even drilling multiple prospects concurrently. I got the impression that he was doing all he could to report news as soon as possible. We talked very briefly about the shareprice and he mentioned that no-one was happy with it (including the Chinese) which I thought was quite telling given the oft touted rumours here that the Chinese want to keep the share price down. I really got the impression that they didn't and that they are actually working quite hard to move the project along. Finally, and without wanting to fan any wild rumours of my own, I asked about Birimian and the possibilities of a single plant for both sites. To which he smiled and made some very cryptic remarks but said that economically it made a lot of sense considering the similarity of the two projects (and others in the area). All in all I was very impressed and am left quite confident about Bernard and the project in general. I think we might be stuck in the doldrums for a while longer, but when things come together they will do so quickly and all at once. Also don't forget about the gold!

[skiboy10] 21/4/2018 17:28

Copied from lse Today 15:19 Price: 0.17Bahadur 73 postsUk investor show feedbackAll- just been back from the show - as my primary interest was kodal for obvious reasons ! Spoken to Bernard - then attend the presentation - then asked more questions!! Synopsis is: Emotional : - Good Guy, very open to discuss anything and also knows his stuff and came across as a genuine person! Also very good presentation Facts: Q: Any further license skeletons which can bite us ? A: every thing is in hand and disappointed at what happened - now behind us ! Q: how confident are you that JORC will come after current campaign and is not further delayed? And how will it compare to Brimian? A: Jorc will come end of this drilling season! It will be smaller than Brimian as cut off is higher and focusing on quality than quantity and also want to get the digging done and start selling stuff - no point having amazing resource but no plan to sell any! Q: where are we at with 10,000 m drilling ? Have we been making any progress? A: 5000+m done in the past 6weeks as double shifts et. - ( my feeling they are at about 8000m+ from my feeling) could be wrong Q: Bulk sample - how confident we will get it shipped in time before rainy season A: confident however would have liked the work to start early - doing anything possible to make sure 3-5k sample is sent! Seemed to have a plan as went through roads etc next to mine! Q: Suay chin - how confident they won't sell up in May / June? A: they have been very supportive and don't see any reason why they would - something along those line- confident look! All in All - feeling much better to meet a ceo who is not a show off instead focused on delivering the results and very confident of us moving from exploration to development to selling the stuff !! AIMHO Hope this is some help for everyone on this board - we need to stick together - and help each other in this journey!

[cpap man] 19/4/2018 11:10

Kodal Minerals* (KOD LN) 0.17p, mkt cap £11.1m –Bougouni exploration programme update

Kodal Minerals reports that it is currently conducting a reverse-circulation programme of infill and extension drilling at the Ngoualana and Sogola-Baoule prospects within its Bougouni lithium prospect in Mali.

Drilling is operating with two rigs on a double shift rota and is expected to continue until the start of the wet season in June/July.

The drilling is expected to lead to the commissioning of a JORC compliant mineral resources estimate.

In addition to the drilling, Kodal Minerals has signed a contract to extract a 5000t bulk sample of the mineralisation at the Ngoualana prospect for metallurgical testing of its concentration characteristics at the Shandong Ruifu Lithium plant in China.

“This prospect provides an ideal initial test as the Company has surface mapping and sampling, drilling and geophysical date to compare to the mining operation and this will provide excellent data for future mine planning.”

Additional metallurgical testing on drill core material from Ngoualana is underway both in China and in Australia to assess the crushing parameters and recovery characteristics “of the spodumene minerals from the DMS and flotation system.”

Conclusion: The current drilling programme should provide sufficient data for an initial mineral resource estimate later in the year while the metallurgical testing and bulk sampling should generate important data to assess processing methods. We look forward to these results later in the year and to initial resource estimate.

*SP Angel act as Financial Advisor and broker to Kodal Minerals. A partner at share price Angel acts as Chairman to the company.

[edgein] 19/4/2018 08:49

Hyper,

Definitely, Australia and China, best places to test and produce the metallurgy results and the concentrate grade for commercialization of the bulk sample. They've got the right contacts for sure for off-take/development of this high grade discovery. Market is completely missing the value that the Chinese bring here and its not just for the intitial £4.8m they put in (astonishingly that's around half of our market cap down here). KOD's Ngou discovery now in excess of 850m, SAV's extended Grandao now around 700m and also open in multiple directions. Great time to be in companies with significant lith assets.

Regards,
Ed.