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: 020 3328
Jeremy Porter/Nick Harriss 5656
SP Angel Corporate Finance LLP,
Financial Adviser & Broker Tel: 020 3470
John Mackay 0470
St Brides Partners Ltd, Financial
PR Tel: 020 7236
Susie Geliher/Megan Dennison/Lottie 1177
Wadham
This information is provided by RNS
The company news service from the London Stock Exchange
END
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