Kodal Minerals PLC Assay Results up to 7.15% Li2O Bougouni Project (6142G)

TIDMKOD

RNS Number : 6142G

Kodal Minerals PLC

05 March 2018

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR")

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

5 March 2018

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

Continued High-Grade, Shallow Lithium Mineralisation at Ngoualana Prospect and Assay Results up to 7.15% Li(2) O

Bougouni Project, Southern Mali

Kodal Minerals plc, the mineral exploration and development company focussed on West Africa, is pleased to provide this update on drilling progress at the Company's Bougouni Lithium Project in Southern Mali ("Bougouni" or the "Project"). The Company is now reporting assay results for the final 19 holes drilled in 2017.

Highlights

   --    Ngoualana prospect continues to return high grade lithium mineralisation. 
   --    Very high grade individual assays up to 1m at 7.15% Li(2) O 

-- 19 drill holes are reported today with high grades intersections of consistent pegmatite mineralisation up to 1.68% Li(2) O targeting the infill and extension drilling of the main prospect

-- Multiple mineralised pegmatite intersections in drill holes and shallow depth intersections including:

o 1m at 7.15% Li(2) O from 43m;

o 26m at 1.67% Li(2) O from 83m;

o 10m at 1.43% Li(2) O from84m and 16m at 1.59% Li(2) O from 119m;

o 8m at 1.59% Li(2) O from 79m and 19m at 1.68% Li(2) O from 123m;

o 1m at 7.15% Li(2) O from 43m;

   --    Ngoualana strike length extended to over 850m and remains open along strike. 

-- Extension drilling has intersected a new zone of pegmatite up to 30m in width - this will be a priority target for additional drill testing

Bernard Aylward, CEO of Kodal Minerals, said: "Drilling at the Ngoualana prospect has delivered consistently encouraging and predictable results, giving us great confidence for further drilling, extensions and for the assessment for future development. The presence of shallow high-grade mineralisation is very positive, and this new pegmatite intersection located to the south of the main body is extremely encouraging. Our drilling will focus on defining this new zone and we are also reviewing our geological mapping and geophysics to attempt to follow this new zone and determine the relationship to the main zone.

"We have a further 17 drill holes in the lab for analysis that have been focussed on exploration and extension targets. We are continuing with the major exploration campaign and will include further geophysical studies to attempt to locate new zones of pegmatite intrusions and mineralisation. We remain fully funded to continue with our work programme, and further assay results will be reported as soon as they become available."

Further Information

Bougouni Lithium Project - Drilling Update

Exploration drilling at the Ngoualana prospect has targeted strike extensions to the main pegmatite body and completed reconnaissance testing of parallel targets. A total of 45 reverse circulation ("RC") drill holes for 5,619m have been completed since October 2017. This announcement reports the final drill holes completed prior to December 2017 and the final 19 drill holes continued to confirm shallow, high grade mineralisation at Ngoualana.

As reported in the announcement of 22 February 2018, Kodal's geological reconnaissance highlighted new zones of pegmatite "float" that was being drilled. Kodal is able to announce that geological logging of the drill holes confirms that a new zone of pegmatite, up to 30m down hole width, has been intersected. Assay results are pending, however this appears to present a significant opportunity to extend the Ngoualana prospect and this is a priority target for further drilling.

As previously announced, the drilling targeting the main Ngoualana prospect was designed to target strike extension and shallow infill zones to provide additional confidence in the geological model. All drill holes intersected pegmatite bodies, with the holes targeting the main zone continuing to confirm the presence of high-grade mineralisation and are consistent with our geological interpretation.

Assay results have been received for the final RC drill holes at the Ngoualana prospect completed prior to December 2017. Intersections are tabled below, with intersections calculated using a 1% Li(2) O lower cut-off, maximum 2m internal dilution and only reporting intersections of greater than 5m width:

 
                                       Hole 
 Hole                                 Depth   From    To   Thickness 
  Id         Northing      Easting        m      m     m           m   Li2O % 
----------  ---------  -----------  -------  -----  ----  ----------  ------- 
 KLRC085      1255334   664433.001      127     20    27           7     1.33 
                                                68    76           8     1.75 
----------  ---------  -----------  -------  -----  ----  ----------  ------- 
 KLRC086      1255294   664269.001      145     75    80           5     0.92 
                                                83   109          26     1.67 
----------  ---------  -----------  -------  -----  ----  ----------  ------- 
 KLRC087B     1255278   664294.001      151     84    94          10     1.43 
                                               119   135          16     1.59 
----------  ---------  -----------  -------  -----  ----  ----------  ------- 
 KLRC088      1255273   664318.001      151     81    92          11     1.27 
                                               125   137          12     1.64 
----------  ---------  -----------  -------  -----  ----  ----------  ------- 
 KLRC089      1255263   664342.001      163     79    87           8     1.59 
                                               123   142          19     1.68 
----------  ---------  -----------  -------  -----  ----  ----------  ------- 
 KLRC090      1255251   664363.001      181    107   113           6     1.07 
                                               129   143          14     1.64 
----------  ---------  -----------  -------  -----  ----  ----------  ------- 
 

Notes: Drill holes are reverse circulation drill holes completed by specialist contractor Geodrill Limited. Drill holes have been sampled on a 1m basis, with samples collected via a cyclone and riffle splitter. Drill hole collars are surveyed using a differential GPS with sub 1-metre accuracy, coordinate system WGS84 - Zone 29N, and all holes are survey down-hole for dip and azimuth on approximately 30m intervals. All drill holes are geologically logged, and sampling for analysis in based on geological boundaries. 1m samples of pegmatite rock have been collected via riffle splitter, and 3 metre composite samples of metasediment host rock. 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 a 1%Li(2) O lower-cut-off, and allowing for a maximum of 2m internal dilution.

Samples were analysed by ALS Laboratories, with sample receipt and preparation at ALS Bamako Mali with final analysis completed at ALS Johannesburg, South Africa. Samples analysis was completed with a four acid digest and final detection by ICP-AES method.

The Company continued drilling in January and February 2018 and there are an additional 17 drill holes with samples dispatched to the lab and pending results.

Lithium

The pegmatite veins intersected by drilling at Bougouni are spodumene rich (20-30% spodumene content) low mica pegmatite bodies with spodumene being the main lithium bearing mineral in most hard rock lithium deposits. The high-grade lithium mineralisation returned in the assays compares favourably with other hard rock spodumene mineralised pegmatite veins under development around the world where grades range from 1.1% Li(2) O through to 1.4% Li(2) O. The intersections reported in this announcement have been estimated using a 1.0% Li(2) O lower-cut and have consistently high mineralisation throughout the pegmatite bodies.

An initial review of the development process for the Bougouni lithium pegmatite bodies was completed as part of the World Bank sponsored SYSMIN study completed by CSA Global in 2008. This report indicated that a process of mine site crushing, screening and dense media separation techniques was able to produce a good quality spodumene concentrate, with grade over 6% Li(2) O. Chemical grade spodumene concentrate (typically containing 6% Li(2) O) is sold for use in battery manufacturing and other industrial applications. Recent lithium concentrate (grade 6%) prices are approximately US$600/t.

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.

**S**

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                               Tel: [phone] 
  Jeremy Porter/Nick Harriss            5656 
 SP Angel Corporate Finance LLP, 
  Financial Adviser & Broker            Tel: [phone] 
  John Mackay                           0470 
 St Brides Partners Ltd, Financial 
  PR                                    Tel: [phone] 
  Susie Geliher/Megan Dennison          1177 
 

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March 05, 2018 02:00 ET (07:00 GMT)