Kodal Minerals PLC Bougouni Lithium Project Update (4827N)

TIDMKOD

RNS Number : 4827N

Kodal Minerals PLC

18 January 2019

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

18 January 2019

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

High-Grade Lithium Intersections for the Sogola-Baoule and Boumou prospects,

Bougouni Lithium Project, Southern Mali

Kodal Minerals, the mineral exploration and development company focused on the Bougouni Lithium Project, is pleased to report further high-grade assay results for the diamond drilling and reverse circulation ("RC") drilling completed in November and December 2018 at the Company's 450km(2) Bougouni Lithium Project in Southern Mali ("Bougouni" or "the Project").

Highlights

-- Sogola-Baoule prospect focused on infill and extension drilling of the defined mineralisation and continued to high grade mineralisation:

o 18.5m at 1.52% Li(2) O from 99.3m in drill hole MDDH007

o 14m at 1.43% Li(2) O from 142.5m in drill hole MDDH008

o 26m at 1.24% Li(2) O from 73m in drill hole MDRC115B

Including 13m at 1.70% Li(2) O from 86m

o 21m at 1.58% Li(2) O from 108m in drill hole MDRC117;

(Note all depths are downhole depth, and true vertical depth will be shallower or closer to surface. Holes MDDH are diamond holes, MDRC are RC holes))

-- Boumou prospect final diamond drill holes intersected multiple mineralised pegmatite veins including:

o 7.5m at 1.04% Li(2) O from 130.3m and

9.5m at 1.04% Li(2) O from 142.8m in drill hole KLDH006;

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

-- Bougouni Project's geological model confirmed by drilling results and an update of interpretation is in progress. Assay results pending for a further 2,732 samples currently in process of analysis

   --   Mineral Resource estimate update expected by the end of February 2019 

Bernard Aylward, CEO of Kodal Minerals, said: "The drilling programme completed last year at the Sogola-Baoule and Boumou prospects has confirmed the continuity and robustness of the lithium mineralisation at Bougouni. This gives us great confidence as we continue to fast track our development plans for the Project. As such, we are in the process of completing a Mineral Resource estimate update that will include all drilling results to date as we look to confirm a long term mine life. This is on track for delivery at the end of February 2019.

"The opportunity highlighted by these continuing good results is that we are now able to assess our proposed operation parameters and factor in a larger mining operation with an initial 1.2Mtpa processing plant, expanding to 1.5Mtpa as the operation moves into steady production phase.

"With this in mind, we are continuing to map out a development programme and will be looking to provide an update to the market on our recent activity and engagement of specialised Engineering contractors to work with Kodal and support this development schedule in due course."

Further Information

Bougouni Lithium Project - Drilling Update

Sogola-Baoule Prospect

Kodal completed a diamond drilling and RC drilling campaign at the Sogola-Baoule prospect in November and December 2018. The drilling programme consisted of:

 
   Sogola-Baoule     No. Drill   Total Metres 
      Prospect         Holes        Drilled 
 RC Drilling            19          3,045 
 Diamond Drilling        4          763.3 
    Grand Total         23         3,808.3 
 

The diamond core portion of the drilling programme was aimed at providing detailed geological information on the pegmatite hosted mineralisation along the strike length of the prospect and providing high quality data to validate our geological model. Geological logging of the diamond core confirms the existing geological interpretation, and importantly highlights the consistency of the mineralised veins along the strike length of the deposit.

The RC portion of the drilling programme was designed to provide infill and definition data for the main zone of the Sogola-Baoule prospect, as well as to continue to define extensions to the mineralisation. Following the Maiden Resource estimate and preliminary open pit optimisation it was evident that the resource could be economically tested at depth as well as along strike. This programme of drilling has confirmed continuity of mineralisation at depth and has potential to impact on future mine design following a Mineral Resource update.

The Sogola-Baoule prospect remains open along strike and at depth and is a priority target for further drill testing. During December 2018 and January 2019 Kodal has completed a ground magnetic survey aimed at providing further understanding of the geological structure of the Sogola-Baoule prospect and assisting in the ranking of targets for further drilling. The interpretation of the ground magnetics is continuing.

This announcement is reporting assay results for a further three diamond drill holes (MDDH006 to MDDH008) and twelve RC drill holes (MDRC110 to MDRC121). 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) 
  Hole Id    Northing   Easting       m         m        m         m        O % 
  MDRC110     1253487    653001        187     52       57             5    1.56 
                                               81       85             4    1.34 
                                               89       92             3    1.61 
                                              107      115             8    1.54 
            ---------  --------  ---------  -------  -------  ----------  ------ 
  MDRC111     1253515    653056        169     48       59            11    1.03 
                                               92      105            13    1.46 
            ---------  --------  ---------  -------  -------  ----------  ------ 
  MDRC112     1253529    653085        151     52       60             8    1.35 
                                               90      109            19    1.30 
            ---------  --------  ---------  -------  -------  ----------  ------ 
  MDRC114     1253443    652952        133     38       60            22    1.10 
                                               93      106            13    1.48 
            ---------  --------  ---------  -------  -------  ----------  ------ 
 MDRC115B     1253544    653129        133     73       99            26    1.24 
                                  Includes     86       99            13     1.7 
            ---------  --------  ---------  -------  -------  ----------  ------ 
  MDRC116     1253719    653421        121     76       82             6    1.91 
                                               87       96             9    1.17 
            ---------  --------  ---------  -------  -------  ----------  ------ 
  MDRC117     1253779    653499        165    108      129            21    1.58 
                                              151      157             6    1.47 
            ---------  --------  ---------  -------  -------  ----------  ------ 
 MDDH006      1253889   653625.      180.4   126.07   129.07        3.00    1.28 
                                             146.00   146.50        0.50    1.87 
                       --------  ---------  -------  -------  ----------  ------ 
 MDDH007      1253638    653288      129.3   53.00    54.00         1.00    1.39 
                                             80.80    81.30         0.50     1.1 
                                             84.80    86.80         2.00    1.92 
                                             99.30    117.80       18.50    1.52 
            ---------  --------  ---------  -------  -------  ----------  ------ 
 MDDH008     12533045    652806      225.3   41.45    42.45         1.00    1.14 
                                             57.80     59.8         2.00    1.31 
                                             72.15    73.15         1.00     1.7 
                                             84.15    86.15         2.00    1.65 
                                             101.65   102.65        1.00     1.7 
                                             107.15   113.65        6.50    1.76 
                                             122.35   123.85        1.50    1.52 
                                             142.54   156.54       14.00    1.43 
                                             192.90   193.9         1.00    2.27 
                                             209.40   214.4         5.00    1.22 
            ---------  --------  ---------  -------  -------  ----------  ------ 
 

Notes: Drill holes prefixed MDDH* 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 holes prefixed MDRC* are RC drill holes. Drill hole collars are surveyed using a differential GPS with sub 1-metre accuracy, coordinate system WGS84 - Zone 29N, and all holes are surveyed 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.

Drill hole MDDH006 is located to the northeast of the prospect and is interpreted to have intersected a fault zone. Review of the ground magnetics does highlight potential geological offset in this region, and further drilling will target an area further to the northeast.

Assay results are pending for an additional 18 RC drill holes and one diamond drill hole. Following receipt of all assay information the Company will complete a geological interpretation and validation followed by completing an updated Mineral Resource estimate. This estimate will be used as a guide to prioritise further drilling at the Sogola-Baoule prospect.

Boumou Prospect

This announcement reports the final diamond drill hole for the Boumou prospect, hole KLDH006, located in the northern zone of the prospect area. In addition to completing the diamond drill hole a programme of RC drilling targeting definition and extensions to the southern zone of pegmatite veins at the Boumou prospect has been completed. All assays are pending for the RC drilling. The completed drilling for November and December 2018 consists of:

 
                     No. Drill   Total Metres 
  BoumounProspect      Holes        Drilled 
 RC Drilling            11          1,337 
 Diamond Drilling        1          225.3 
    Grand Total         12         1,562.3 
 

Drill hole KLDH006 intersected multiple pegmatite veins, consist with the geological interpretation, and significant intersections are tabled below:

 
                                  Hole 
                                  Depth    From      To     Thickness   Li(2) 
 Hole Id    Northing   Easting      m        m        m         m        O % 
 KLDH006     1256400    655500    225.3   56.55    58.05         1.50    1.48 
                                          59.55    60.55         1.00    1.43 
                                          81.15    82.15         1.00    1.34 
                                          117.77   119.77        2.00    1.40 
                                          130.30   137.80        7.50    1.04 
                                          142.80   152.30        9.50    1.04 
           ---------  --------  -------  -------  -------  ----------  ------ 
 
 

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.

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 maiden Mineral Resource estimate for the prospect highlight two distinct zones being the "North" and South" zones. The results of the completed drilling and geological review of the data highlights that the southern zone is proving more robust and will be the target for further definition and extensions drilling. The completed RC drilling programme has continued to demonstrate the extensions of the mineralised pegmatite bodies and further geological review in conjunction with the ground magnetic survey is highlighting priority targets for next phase drilling.

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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January 18, 2019 02:00 ET (07:00 GMT)