Kodal Minerals PLC Lithium Mineralisation at Sogola-Baoule and Boumou (7004U)

TIDMKOD

RNS Number : 7004U

Kodal Minerals PLC

16 July 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

16 July 2018

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

Lithium Mineralisation at the Sogola-Baoule and Boumou Prospects,

Bougouni Project, Southern Mali

Kodal Minerals plc, the mineral exploration and development company focussed on the exploration and development of its Bougouni Lithium Project in Southern Mali ("Bougouni" or the "Project"), West Africa, is pleased to provide an update on further lithium mineralised intersections from the Sogola-Baoule prospect ("Sogola-Baoule") and to provide details of the lithium mineralisation intersected at the Boumou prospect ("Boumou"). The Company is awaiting a further 3,100 assay results to be returned from the lab, with additional results expected for the Bougouni South, Ngoualana and Sogola-Baoule prospects from the Project.

To view this announcement with the illustrative maps and diagrams please use the following link:

http://www.rns-pdf.londonstockexchange.com/rns/7004U_1-2018-7-15.pdf

Highlights

-- Sogola-Baoule mineralisation continues to extend to northeast, with a further 7 drill holes received. Intersections include:

o 10m at 1.02% Li(2) O from 114m;

14m at 1.66% Li(2) O from 127m in drill hole MDRC087;

o 15m at 1.49% Li(2) O from 41m in drill hole MDRC090;

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

-- Final results awaited from the remaining 15 drill holes that were completed at the end of the field season at Sogola-Baoule.

   --   Boumou prospect returns multiple mineralised pegmatite intersections. Intersections include: 

o 19m at 1.40% Li(2) O from 69m in drill hole KLRC105;

o 11m at 1.58% Li(2) O from 39m in drill hole KLRC108;

o 11m at 1.55% Li(2) O from 41m in drill hole KLRC121;

o 15m at 1.46% Li(2) O from 45m in drill hole KLRC129

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

   --   All intersections are from shallow depth and confirm continuity of surface pegmatite. 
   --   Mineralisation at Boumou defined over a 400m strike length in northern zone of prospect. 

Bernard Aylward, CEO of Kodal Minerals, said: "We are very pleased that the encouraging assay results for the Boumou prospect are confirming our geological interpretation. This prospect is continuing to develop, and we have a northern zone of pegmatite veins defined for over 400m, and in the southern portion of the prospect we have multiple mineralised veins that remain open along strike. This is very positive for the economic potential of this area and is now our third advanced prospect.

"The Sogola-Baoule prospect continues to return strong mineralisation, and the strike length of 1,400m is very encouraging for significant mineralisation to be defined here. This field season has allowed us to complete a large amount of drilling, with a focus on the Ngoualana, Sogola-Baoule and Boumou prospect to support our resource estimates.

"We are continuing to push for a rapid development of the Bougouni project and will be undertaking diamond drilling in August at the Sogola-Baoule prospect to gain further metallurgical samples and continue definition of this prospect. In parallel we will be undertaking the maiden resource estimate for the project and conducting preliminary mining optimisation studies. We are entering a very exciting phase for the Bougouni project and we look forward to reporting further over the next few months".

Further Information

Bougouni Lithium Project - Drilling Update

Sogola-Baoule Prospect

These additional drill holes for the Sogola-Baoule prospect continue to confirm the extensive mineralised zone and the potential for this prospect. The strike length exceeds 1,400m and is expected to continue to grow as we complete further exploration drilling. A further 15 drill holes are pending assay results for the prospect to finalise the 2017/2018 field season. The initial geological review of these drill holes confirms the continued intersections of the pegmatite body, and in places the pegmatite body is significantly wider indicating a convergence of structures or structural repletion of the vein. This is a further positive indication of the economic potential of this prospect where high grade mineralisation has been consistently intersected under shallow cover and remains open along strike and at depth.

The Company intends to re-commence drilling at this prospect in August (during the rainy season) with diamond drilling for allow detailed geological logging and interpretation. The diamond drill holes will be a mixture of infill and definition drilling and will be followed up by extensional drill holes targeting the zones further to the north east.

Assay results have been received for a further 7 RC drill holes at Sogola Baoule. The drilling has returned numerous mineralised pegmatite intersections as expected for this prospect and the significant intersections based on a minimum 5m width, and calculated using a 1% Li(2) O lower cut-off, maximum 2m internal dilution are tabled below:

 
                                  Hole 
                                  Depth   From   To    Thickness   Li(2) O 
 Hole Id    Northing   Easting      m       m     m        m          % 
           ---------  --------  -------  -----  ----  ----------  -------- 
 MDRC087     1253595    653235      163     84    89           5      1.99 
 MDRC087                                   114   124          10      1.02 
 MDRC087                                   127   141          14      1.66 
           ---------  --------  -------  -----  ----  ----------  -------- 
 MDRC089     1253550    653085      130     77    82           5      1.52 
 MDRC089                                   110   119           9      1.36 
           ---------  --------  -------  -----  ----  ----------  -------- 
 MDRC090     1253490    653085      145     41    56          15      1.49 
           ---------  --------  -------  -----  ----  ----------  -------- 
 

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.

Boumou Prospect

The Boumou prospect is located 3.5km to the northeast of the Sogola-Baoule prospect. All assay results have been received for the recently completed exploration and definition RC drilling at Boumou that consisted of 41 drill holes for 4,597m completed.

The prospect has intersected multiple lithium mineralised pegmatite veins (refer figure 3). In the southern portion of the prospect, drilling has identified 4 closely spaced pegmatite veins with mineralised widths up to 19m (downhole) that confirm previous reconnaissance drill testing and surface mapping. This area requires further drill testing to target the strike extensions and the depth extensions of the veins, and geological review indicates a possible convergence of structures to the west. This is an interesting area for further follow-up and the proposed drilling programme consists of RC drilling to commence following the rainy season.

In the northern portion of the prospect a consistent pegmatite vein extending for over 400m with downhole mineralisation up to 15m width has been confirmed by drilling. Follow-up drilling will target the western extension of the zone where the structure remains open along strike and also indicates a convergence of structures.

The Boumou prospect is the third advanced prospect for the Company at the Bougouni project and is undergoing mineral resource assessment as the Company looks to complete its maiden resource estimate.

Mineralisation intersections returned for the Boumou prospect, based on a minimum 5m width, and calculated using a 1% Li(2) O lower cut-off, maximum 2m internal dilution are tabled below:

 
                                  Hole 
                                  Depth   From   To    Thickness   Li(2) O 
 Hole Id    Northing   Easting      m       m     m        m          % 
           ---------  --------  -------  -----  ----  ----------  -------- 
 KLRC105     1255540    655355      109     69    88          19      1.40 
           ---------  --------  -------  -----  ----  ----------  -------- 
 KLRC106     1255600    655360      106     54    60           6      1.06 
           ---------  --------  -------  -----  ----  ----------  -------- 
 KLRC107     1255660    655355      109     63    69           6      1.55 
           ---------  --------  -------  -----  ----  ----------  -------- 
 KLRC108     1255720    655355      109     39    50          11      1.58 
           ---------  --------  -------  -----  ----  ----------  -------- 
 KLRC117     1256260    655600      109     54    65          11      1.52 
           ---------  --------  -------  -----  ----  ----------  -------- 
 KLRC120     1256260    655500      109     49    55           6      1.61 
 KLRC120                                    59    66           7      1.34 

           ---------  --------  -------  -----  ----  ----------  -------- 
 KLRC121     1256260    655550      109     41    52          11      1.55 
           ---------  --------  -------  -----  ----  ----------  -------- 
 KLRC122     1256260    655650      115     71    78           7      1.00 
           ---------  --------  -------  -----  ----  ----------  -------- 
 KLRC124     1256240    655500      193     98   108          10      1.37 
           ---------  --------  -------  -----  ----  ----------  -------- 
 KLRC125     1256240    655550      100     82    93          11      1.72 
           ---------  --------  -------  -----  ----  ----------  -------- 
 KLRC129     1256320    655500      117     45    60          15      1.46 
           ---------  --------  -------  -----  ----  ----------  -------- 
 

Notes: As above information is the same for Boumou prospect

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. Further tests completed by Shandong Ruifu Lithium Co Ltd, one of the largest lithium carbonate producers in China, and reported by the Company on 9 October 2017, produced a high quality, low impurity battery grade lithium carbonate using spodumene concentrate from Bougouni.

Recent lithium concentrate (grade 6%) prices range between US$800/t and US$950/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.

**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/Megan Dennison                  Tel: [phone] 
                                                1177 
 

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July 16, 2018 02:00 ET (06:00 GMT)