Kodal Minerals PLC Replacement: Bougouni Project update (4919H)

TIDMKOD

RNS Number : 4919H

Kodal Minerals PLC

15 November 2018

This announcement replaces the Bougouni Project Update announcement released today at 09:22 under RNS number 4670H as the title was incorrect. The title has been corrected in the announcement below and all other details remain unchanged.

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

15 November 2018

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

Bougouni Project update - high grade Diamond Core drill results from Sogola-Baoule Prospect and Boumou Prospect

Kodal Minerals, the mineral exploration and development company focused on the Bougouni Lithium Project, is pleased to report further assay results for the diamond drill holes completed during the wet season at the Sogola-Baoule prospect ("Sogola-Baoule") and Boumou prospect ("Boumou") located on the Company's 450km(2) Bougouni Lithium Project in Southern Mali ("Bougouni").

Highlights

   --   At Sogola-Baoule, diamond core intersections include: 

o 18m at 1.35% Li(2) O from 74.75m in drill hole MDDH005;

o 16.5m at 1.32% Li(2) O from 153.5m in drill hole MDDH004;

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

-- First diamond core intersections at Boumou prospect return multiple mineralised pegmatite intersections including:

o 6m at 1.39% Li(2) O from 65.55m;

5m at 1.32% Li(2) O from 80.5m; and

9.5m at 1.41% Li(2) O from 93.3m in drill hole KLDH007; and

o 7m at 1.43% Li(2) O from 43.49m in drill hole KLD008;

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

   --   Diamond drilling recommencing at Sogola-Baoule today 

Bernard Aylward, CEO of Kodal Minerals, said: "These continued high-grade results for Sogola-Baoule are very pleasing. The main pegmatite zone is proving to be very consistent and we are planning our drill holes to infill the prospect for updating our mineral resource estimate and continuing to extend the prospect to the northeast. At Boumou we are adding definition to our multiple pegmatite veins and we will be looking to extend these zones where we have veins in close proximity that will improve our potential mining optimisations."

"Our new drilling season is commencing today, and this is a very important stage for us as we look to move rapidly to development. Our programme will commence with two drill rigs at Sogola-Baoule and then following with extension drilling at Boumou and Ngoualana."

Further Information

Bougouni Lithium Project - Drilling Update

This announcement updates the drilling results for Sogola-Boule with additional results for three diamond drill holes and the first three holes for the Boumou prospect. We are pending results for the remaining three core holes at Boumou. Following a site visit and review of the core, additional sampling is being completed for the Sogola-Baoule core. 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 % 
 Baoule      MDDH003     1253718    653445    102.2    70.45    73.95    3.5         1.61 
  MDDH003                                              70.45    76.45    6           1.30 
  MDDH003                                              81.23    90.23    9           1.62 
 ----------             ---------  --------  -------  -------  -------  ----------  ------ 
 Baoule      MDDH004     1253627    653184    234.5    116.44   120.94   4.5         1.16 
  MDDH004                                              153.50   170.00   16.5        1.32 
  MDDH004                                              227.45   232.45   5           1.28 
 ----------             ---------  --------  -------  -------  -------  ----------  ------ 
 Baoule      MDDH005     1253784    653603    135.21   74.75    92.75    18          1.35 
            ----------  ---------  --------  -------  -------  -------  ----------  ------ 
 Boumou      KLDH007     1255574    655328    108.4    65.55    71.55    6           1.39 
  KLDH007                                              80.50    85.50    5           1.32 
  KLDH007                                              93.30    102.80   9.5         1.41 
 ----------             ---------  --------  -------  -------  -------  ----------  ------ 
 Boumou      KLDH008     1255792    655401    174.5    36.99    43.99    7           1.43 
  KLDH008                                              89.19    92.19    3           1.32 
  KLDH008                                              103.78   106.28   2.5         1.42 
 ----------             ---------  --------  -------  -------  -------  ----------  ------ 
 
 

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.

Sogola-Baoule Prospect

The results at Sogola-Baoule prospect continue to have a very high correlation with the Company's current geological model and increase our confidence in the interpretation. The current drilling programme is designed to infill the geological model and is focussed on providing data to upgrade our mineral resource estimate. The reverse circulation ("RC") drilling will focus on extension of the main pegmatite zone as well as delineating the parallel veins.

Kodal Minerals is undertaking some further sampling of the diamond core and completing detailed geological logging.

Boumou Prospect

Diamond core drilling at the Boumou prospect targeted both the 'northern' and 'southern' zones for the 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 geological interpretation from our initial RC drilling highlighted the separate 'northern' and 'southern' zones that formed the initial minerals resource estimate. This announcement details assay results received for the first three diamond core holes that targeted the southern zone. Geological logging and assay results for the prospect received so far confirm our geological model.

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.

**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 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 15, 2018 05:53 ET (10:53 GMT)