Kodal Minerals PLC Company update on Lithium and Gold Projects (1412O)

TIDMKOD

RNS Number : 1412O

Kodal Minerals PLC

28 May 2020

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

28 May 2020

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

Company Update on the Bougouni Lithium Project

and

Gold Exploration Projects

Kodal Minerals, the mineral exploration and development company, is pleased to provide this update on the progress of the Bougouni Lithium Project ("Bougouni" or the "Project") Mining Licence application in Mali. In addition, the Company provides an update on its gold exploration properties in Mali and Cote d'Ivoire.

Highlights:

Bougouni Lithium Project

-- Kodal informed that the Feasibility Study accompanying the Mining Licence application has been accepted by the Ministry of Mines and Petroleum

-- The Ministry of Mines and Petroleum confirmed that no further COMINE technical and financial meetings are required prior to Mining Licence approval

-- The Directorate Nationale de la Géologie et des Mines ("DNGM") has agreed the new Mining Licence area and new permit boundary that encompasses all resources and the proposed mining and associated infrastructure area

-- Kodal still awaiting formal issuance of final Mining Licence documents and notes that the COVID-19 restrictions have impacted on the Mali Government's process and timing of delivery cannot be confirmed.

Gold Exploration Project Review

-- The gold assets in Mali and Cote d'Ivoire have attracted interest from investors and other exploration and development companies

-- The portfolio of gold assets has been maintained in good standing, and the tenure has been refreshed where possible

-- The projects have been reviewed by our geological team and a strategy for further exploration has been developed for the Nangalasso project in Mali and the Dabakala project in Cote d'Ivoire

-- Nangalasso project review has highlighted a 5,500m gold anomalous trend with intersections including 21m at 1.25g/t gold, including 3m at 7.85g/t gold

-- Dabakala project has an extensive surface geochemical anomaly extending for 8km in strike length in a new region with classical Birimian gold geological setting and structures.

Bernard Aylward, CEO of Kodal Minerals, remarked: "The acceptance of the Feasibility Study, submitted in support of the Mining Licence application, by the Mali Governments is a reflection of the level of detail supplied and incorporated into the study and supports our belief in the economic potential of the project. The Mali Government continues to be very supportive of the development of a lithium mining industry in Mali, and the progress of our permitting reflects the governmental support Kodal has received. Although an exact timeline cannot be given for the final approval of the Mining Licence application, our communication with the Government will continue regularly and we will keep shareholders updated with our progress.

"Kodal's gold projects have continued to attract interest in light of the ongoing strength in the gold price and recognition of a high quality land position in the world class Birimian sequence of West Africa. We have maintained our landholding in Mali where our priority Nangalasso project is located adjacent to the Syama Gold mine, and just 30km to the north of the Sissingue Gold mine. Preliminary exploration has been undertaken at Nangalasso, returning very encouraging intersections over an extensive strike length and follow-up exploration is being developed. In Cote d'Ivoire we have recently renewed licences and at our Dabakala project we expect to undertake infill geochemical sampling to define new drill targets.

"This continues to be an active time for Kodal as we prepare for the granting of the Bougouni Lithium project mining licence and we have the opportunity to advance the exploration on our gold assets to enhance the long term value for the Company."

Further Information

Gold Project Review

Nangalasso Project

The Nangalasso project which consists of three concessions, the Nangalasso, Sotian and Tiedougoubougou concessions covering an area of approximately 310km(2) . The Sotian and Tiedougoubougou concessions are new concessions in the initial three-year term, with two renewals of two years each remaining. The Nangalasso concession has a final two-year renewal remaining. Kodal Minerals is the 100% beneficial owner of the project having completed all option payments. The project is located in the Sikasso region of southern Mali, an area that hosts the Syama Gold Mine and the Morilla Gold Mine, and the regions hosts significant mines in Cote d'Ivoire including the Sissingue Gold mine and the Tongon Gold mine. The Nangalasso project is located in a similar geological setting to the Sissingue deposit located just 30km to the south.

Previous exploration at Nangalasso has consisted of surface geochemical sampling, auger geochemical drilling, trench sampling and wide-spaced reconnaissance aircore drilling. A large geochemical gold anomaly has been defined at Nangalasso and results from the reconnaissance drilling include:

   --    21m at 1.25g/t gold, including 3m at 7.1g/t gold 
   --    3m at 7.84g/t gold including 1m at 13.5g/t gold (eoh) 
   --    1m at 7.8g/t gold. 

A review of the historic drilling, geochemical sampling and artisanal workings has highlighted a 5,500m strike length of gold anomalism requiring further reconnaissance exploration and infill and definition work.

Dabakala Project

The 100% owned Dabakala project is located in central Côte d'Ivoire and consists of one granted concession covering an area of approximately 300km(2) . Previous exploration activity by Kodal Minerals has defined a new extensive surface geochemical anomaly. Field geological mapping highlights the association of sheared and altered geology associated with the anomaly, and the presence of artisanal workings further defines zones of interest. This is a large surface anomaly, extending for over 10km of strike and up to 800m in width.

Exploration at Dabakala is at an early stage with sample spacing at a reconnaissance level of 1,000m line x 200m sample spacing over key areas of the anomaly. Geochemical sampling results from multiple phases of work confirm the extent of the gold anomaly with results up to 97ppb returned. Further work is required to define this prospect prior to initial drill testing.

Development and Exploration Strategy

Kodal Mineral's focus remains the fast track development of the Bougouni Lithium project. The company expect the Mining Licence to be approved and is continuing to review the proposed mining study as well as working to improve the optimisation of the operation and finalising the processing plant design.

The Company's review of its gold assets highlights the potential for a focussed exploration programme at the Nangalasso project in Mali and the Dabakala project in Cote d'Ivoire to deliver exploration success for Kodal. An exploration programme that is being developed to advance these priority projects will consist of:

-- Reconnaissance Aircore drilling along a 5,500m strike length at the Nangalasso project, with drilling being targeted by historic geochemistry, drilling and geological mapping.

-- Infill geochemical sampling at Dabakala including geological mapping of the defined gold anomalous zone to prioritise reconnaissance drilling

Exploration activity will be able to be undertaken by our existing geological team which has substantial experience in the gold exploration in West Africa.

A summary presentation of the Company's projects and strategy has been prepared and is available on the Company's website.

**S**

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 towards production of its flagship Bougouni Lithium Project in Southern Mali. The JORC Resource Estimate places 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:

 
 Prospect         Indicated                     Inferred                      Total 
                                    Contained                     Contained                     Contained 
                           Li(2)     Li(2)               Li(2)     Li(2)               Li(2)     Li(2) 
                  Tonnes    O%       O          Tonnes    O%       O          Tonnes    O%       O 
                   (Mt)     Grade    (kt)        (Mt)     Grade    (kt)        (Mt)     Grade    (kt) 
                 -------  -------  ----------  -------  -------  ----------  -------  -------  ---------- 
 Sogola_Baoule    8.4      1.09     91.9        3.8      1.13     42.8        12.2     1.10     134.8 
                 -------  -------  ----------  -------  -------  ----------  -------  -------  ---------- 

 Ngoualana        3.1      1.25     39.2        2.0      1.12     22.1        5.1      1.20     61.3 
                 -------  -------  ----------  -------  -------  ----------  -------  -------  ---------- 
 Boumou                                         4.0      1.02     40.4        4.0      1.02     40.4 
                 -------  -------  ----------  -------  -------  ----------  -------  -------  ---------- 
 TOTAL            11.6     1.13     131.2       9.7      1.08     105.3       21.3     1.11     236.5 
                 -------  -------  ----------  -------  -------  ----------  -------  -------  ---------- 
 

Notes: Mineral resources are reported using a 0.5%Li(2) O cut-off. Figures may not sum due to rounding. The contained metal is determined by the estimated tonnage and grade.

The Bougouni Project and recently acquired 200km(2) Bougouni West project are 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 positioned 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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May 28, 2020 02:00 ET (06:00 GMT)