Kodal Minerals PLC Bougouni Lithium Project Update (4111I)

TIDMKOD

RNS Number : 4111I

Kodal Minerals PLC

26 November 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

26 November 2018

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

Further Diamond Core Intersections, Boumou Prospect,

Bougouni Lithium Project, Southern Mali

Kodal Minerals, the mineral exploration and development company focused on the Bougouni Lithium Project, is pleased to report assay results for an additional three diamond drill holes at the Boumou ("Boumou") prospect located on the Company's 450km(2) Bougouni Lithium Project in Southern Mali ("Bougouni").

Highlights

-- Diamond core intersections at Boumou prospect continue to return multiple mineralised pegmatite intersections including:

o 6.5m at 1.18% Li(2) O from 64.0m and

6.5m at 1.42% Li(2) O from 80.5m and

1.0m at 2.07% Li(2) O from 131.63m all from drill hole KLDH010;

(Note all depths are downhole depth, and true vertical depth will be shallower or closer to surface)

-- Assay grades up to 3.54% Li(2) O returned for individual samples within the mineralised pegmatites;

   --   Diamond core drilling continuing at the Sogola-Baoule and Boumou prospects on site; 

-- Reverse Circulation ("RC") drilling continuing with a focus on mineral resource definition and extension at the Sogola-Baoule prospect.

Bernard Aylward, CEO of Kodal Minerals, said: "The Boumou prospect continues to return high grade lithium mineralisation from the close spaced multiple pegmatite veins. We are continuing to drill at this prospect to define the pegmatite zones as well as extending the mineralisation. We are pending additional results from the diamond core drilling and have commenced the RC drilling that will continue through to Christmas and we expect regular newsflow over this period.

"Our drill programme is an important part of our plans for development of the Bougouni project, and along with the recent appointment of our Project Manager, we are continuing to fast-track the mining development. We have maintained our discussions with the Mali Government about the Bougouni project to ensure that we are complying with all requirements for our future mining application."

Further Information

Bougouni Lithium Project - Drilling Update

This announcement updates the drilling results for the Boumou prospect with an additional three diamond drill holes reported. We have undertaken additional sampling of the core from both the Sogola-Baoule and Boumou prospects to assist in geological definition. In addition, diamond core hole KLDH011 at Boumou has been extended to attempt to intersect additional veins indicated by the other drill holes and interpretation. Significant intersections calculated using a 1% Li(2) O lower cut-off, maximum 2m internal dilution are tabled below:

 
                                              Hole 
                                              Depth    From      To     Thickness   Li(2) 
 Prospect    Hole Id    Northing   Easting      m        m        m         m        O % 
  Boumou     KLDH010     1255759    655229    159.4   64.00     70.5         6.50    1.18 
        KLDH010                                       114.00   120.5         6.50    1.42 
        KLDH010                                       131.63   132.63        1.00    2.07 
 --------------------  ---------  --------  -------  -------  -------  ----------  ------ 
  Boumou     KLDH011     1255577    655400     90.3   66.00     68.5         2.50    1.38 
            ---------  ---------  --------  -------  -------  -------  ----------  ------ 
  Boumou     KLDH012     1255681    655400    216.3   58.20     59.7         1.50    1.88 
            ---------  ---------  --------  -------  -------  -------  ----------  ------ 
 

Notes: Drill holes are diamond core drill holes with core at HQ diameter. Drill holes have been sampled on a 0.5m basis, with core cut along an orientation line, and subsequent quarter core collected for assay test work. 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. 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.

Boumou Prospect

Diamond core drilling at the Boumou prospect targeted both the 'northern' and 'southern' zones for the prospect. The Boumou prospect has continued to return high grade mineralisation, with early surface geochemical sampling returning assay results over 2.0% Li(2) O for surface sampling, and the recent drilling returning assay results up to 3.54% Li(2) O for fresh pegmatite vein samples. The high grade nature of the mineralisation and the close proximity of the pegmatite veins is a positive for future mining development of this prospect. The Boumou prospect is characterised by multiple lithium mineralised pegmatite veins with an overall strike trending east-northeast/south-southwest and dipping to the north. The diamond core holes are confirming our geological interpretation and highlighting areas for additional drilling. The drill hole KLDH011 has been extended to intersect additional veins noted in other drill holes, and logging of the core confirms the presence of additional veins and assay results are pending.

The Boumou prospect will be targeted by RC drilling in the next campaign with a focus on continuing to expand the mineralised zone and define mineralisation with potential to support open pit mining.

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.com or contact the following:

 
 Kodal Minerals plc 
  Bernard Aylward, CEO                          Tel: [phone] 
                                                345 
 Allenby Capital Limited, Nominated Adviser 
  Jeremy Porter/Nick Harriss                    Tel: [phone] 
                                                5656 
 SP Angel Corporate Finance LLP, Financial 
  Adviser & Broker                              Tel: [phone] 
  John Mackay                                   0470 
 St Brides Partners Ltd, Financial PR 
  Susie Geliher/Cosima Akerman                  Tel: [phone] 
                                                1177 
 

About Kodal Minerals

Kodal Minerals' primary focus is on the rapid advancement of its flagship Bougouni Lithium Project in Southern Mali towards production. The recently completed Maiden JORC Resource Estimate placed the Bougouni Project in the top 15 hard rock lithium projects globally and was calculated using only three of the eight currently recognised prospects demonstrating the significant exploration upside potential remaining across the 450km(2) project area. The Mineral Resource estimate for the Ngoualana, Sogola-Baoule and Boumou prospects are tabulated below. These mineral resources are reported in accordance with the JORC Code:

 
                                      Contained Li(2) 
                  Tonnes   Li(2) O%    O 
                   (Mt)     Grade      (kt) 
 Sogola_Baoule    10.4     1.18       122.2 
                 -------  ---------  ---------------- 
 Ngoualana        4.7      1.34       62.8 
                 -------  ---------  ---------------- 
 Boumou           2.2      1.04       22.9 
                 -------  ---------  ---------------- 
 Total            17.3     1.20       207.9 
                 -------  ---------  ---------------- 
 

Notes: Mineral resources are reported using a 0.5%Li2O cut-off. Figures may not sum due to rounding. The contained metal is determined by the estimated tonnage and grade.

The Bougouni Project is located in an emerging lithium province that is already attracting the attention of investors and off-take partners interested in securing a long-term supply of lithium. With the support of its strategic investor and off-take partner Suay Chin International Pte, a Singapore-based lithium and chemical trader, Kodal Minerals is well funded to continue its ambitious development programme at Bougouni.

Further to this, Kodal Minerals is the manager of additional lithium and gold projects that are undergoing low cost exploration programmes in addition to JV funded gold properties in Cote d'Ivoire that offer potentially significant long-term value.

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November 26, 2018 02:00 ET (07:00 GMT)