Kodal Minerals PLC Work Programme Commencing at Lithium Project, Mali (0143U)

TIDMKOD

RNS Number : 0143U

Kodal Minerals PLC

19 October 2017

Kodal Minerals Plc / Index: AIM / Epic: KOD / Sector: Mining

19 October 2017

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

Major Exploration and Definition Work Programme Commencing at the Bougouni Lithium Project, Mali

Kodal Minerals plc is pleased to announce details of the work programme to be completed at the Company's Bougouni lithium project in Southern Mali ("Bougouni" or the "Bougouni Project") this season. This work programme is aimed at both expanding and defining the lithium pegmatite veins previously identified, and testing new anomalies, including those identified through ground geophysical survey work undertaken over the summer.

Highlights

-- Multiple high priority targets will be drilled commencing with the Ngoualana and Ngoualana extension areas to be followed by Sogola Baoule and Boumou;

-- Drilling programme is planned to commence next week, with the first stage 10,000m drilling aimed at extension and definition drilling of identified high-grade mineralisation;

-- Metallurgical testwork is continuing on samples of diamond core dispatched to China and Australia;

-- Bulk Sample of 5,000t is to be mined and shipped to China for further large scale processing testwork;

-- Geophysical survey work is continuing to target areas of known pegmatite veining and tracing these into areas of cover and vegetation.

Bernard Aylward, CEO of Kodal Minerals, said: "Kodal is commencing a major work programme at the Bougouni Lithium Project with the aim of both expanding the known areas of mineralisation and conducting definition drilling over previously drilled areas. Since acquiring the Project just over a year ago, Kodal has completed regional first pass exploration and drill tested six areas with very encouraging results at all locations. This next phase of work is designed to build on the results achieved to date and involves drilling, geophysics, metallurgy and bulk sampling. Importantly a number of holes are designed to test targets generated using ground geophysics. If successful this will confirm geophysics as valuable tool in locating extensions to pegmatites under cover.

"Kodal is well funded to undertake this programme and continue the necessary exploration and definition drilling required to assess our very large and prospective landholding. The drilling programme is testing a substantial number of new targets and extensions along with a number of geophysical targets. While the Company is still actively expanding the known areas of mineralisation, we are not looking to establish a JORC Mineral Resource estimate. This position will be reviewed at the end of the current field season."

Programme Details

Drilling Targets

Kodal has continued to review the results of the first drilling campaign in conjunction with the ongoing surface mapping, sampling and recent ground geophysical surveys. This review has generated additional drill targets, with a focus on the Ngoualana prospect and surrounding areas.

The target areas include:

-- Ngoualana Infill and Definition drilling: designed to confirm geological interpretation and provide confidence in continuity of high-grade mineralisation. Drilling will continue to test depth and strike extensions

-- Ngoualana Extension and Offset: drillholes designed to continue targeting main zone to the east and also testing structural offsets highlighted by geophysical survey

-- Ngoualana South: drill holes designed to target and area of multiple, narrow pegmatite veins that have been returning high-grade surface samples

-- Sogola-Baoule: drilling designed to follow-up high grade intersections and target strike extensions of the outcropping pegmatite veins. This area is being reviewed with the potential to host a bulk tonnage, lower grade mineralisation that will support the Ngoualana mineralisation

-- Boumou: drilling planned to target extensions of known veins as well as initial drill testing of veins in the Boumou prospect area that have returned high grade surface samples

   --    New Targets: geological review and mapping has identified new targets for drilling testing 

Bulk Sample

Kodal is planning to extract a 5,000t bulk sample and export this material to China for test processing. The material will be sourced from the Ngoualana and Sogola prospects. The aim is to complete large scale testing of the full production processes from run of mine material to a saleable Lithium carbonate product.

Kodal is currently reviewing options for contract mining of the sample before shipping it to China. This bulk sample is expected to take three months to mine and transport from commencement date.

Metallurgical Testwork

Metallurgical testwork is continuing on the diamond drill core obtained from the Ngoualana prospect. The aim of this programme is to provide further details on the metallurgical characteristics of the ore as well as a full suite of comminution tests. In addition, samples will be sent to a metallurgical laboratory in Australia for verification and check work.

Geophysical Survey

Kodal is continuing a programme of ground magnetic surveys targeting areas of known pegmatite intrusion and following these into areas of transported cover and vegetation. The initial surveys over the Ngoualana and Sogola-Baoule prospects are still being reviewed and processed, however initial indications demonstrate that the prospects, and extensions to the structures, can be identified in the surveys and areas of potential offset and parallel positions have been highlighted. This interpretation work is continuing and is being undertaken by Kodal staff and consultants. Further details of the geophysical surveys will be reported as information is finalised.

Bougouni Lithium Mineralisation

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. Chemical grade spodumene concentrate (typically containing 6% Li(2) O) is sold for use in battery manufacturing and other industrial applications. Recent lithium concentrate (grade 6%) prices are approximately US$600/t.

Annual General Meeting

The Company has previously announced that it is holding its AGM at Fieldfisher LLP, 9th Floor, Riverbank House, 2 Swan Lane, London EC4R 3TT at 12.00 p.m. on Tuesday 31 October 2017.

The Company requests that any shareholders who are planning to attend the meeting please bring a form of photo identification with them due to security procedures at the venue.

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: +61 418 
                                          943 345 
 Allenby Capital Limited, Nominated 
  Adviser                                 Tel: [phone] 
  Jeremy Porter/Nick Harriss              5656 
 SP Angel Corporate Finance LLP, 
  Financial Adviser & Broker              Tel: [phone] 
  John Mackay                             0470 
 St Brides Partners Ltd, Financial 
  PR                                      Tel: [phone] 
  Susie Geliher/Megan Dennison/Lottie     1177 
  Wadham 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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October 19, 2017 02:00 ET (06:00 GMT)