TIDMKOD
RNS Number : 0629S
Kodal Minerals PLC
21 June 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
21 June 2018
Kodal Minerals plc ('Kodal Minerals' or the 'Company')
High Grade Lithium Intersections Extend Sogola-Baoule Prospect
to over 1.4km,
Bougouni Project, Southern Mali
Kodal Minerals plc, the mineral exploration and development
company focussed on West Africa, is pleased to provide an update on
further lithium mineralised intersections from the Sogola-Baoule
prospect ("Sogola-Baoule"), which continue to confirm and extend
this developing prospect. Additional drill results are pending for
recent drilling completed within the Company's Bougouni Lithium
Project in Southern Mali ("Bougouni" or the "Project").
To view this announcement with the illustrative maps and
diagrams please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/0629S_1-2018-6-20.pdf
Highlights
-- High grade lithium mineralisation from an additional 19 drill
holes from follow-up and extension drilling at Sogola-Baoule.
Intersections include:
o 22m at 1.58% Li(2) O from 110m in drill hole MDRC083
o 20m at 1.43% Li(2) O from 34m in drill hole MDRC084
o 15m at 1.19% Li(2) O from 70m &
13m at 1.76% Li(2) O from 117m in drill hole MDRC066;
o 13m at 1.76% Li(2) O from 123m in drill hole MDRC073;
(Note all depths are downhole depth, and true vertical depth
will be shallower or closer to surface)
-- Drilling continues to extend mineralisation with strike length of 1,400m confirmed in drilling
-- Drilling completed in June with assay results pending for a
further 22 drill holes pending assay
-- Exploration drilling completed at the Boumou prospect with a total of 41 drill holes completed
-- Review of Boumou geology highlights new zone extending for
over 400m with intersections up to 25m wide - all assay results
pending
Bernard Aylward, CEO of Kodal Minerals, said: "The Sogola-Baoule
prospect is continuing to grow in our ranking and we are expecting
to receive further mineralised intersections over the next few
weeks. The development of this prospect demonstrates the positive
results of our exploration approach and at the end of a very busy
drilling season, we now have three advanced prospects at Ngoualana,
Sogola-Baoule and Boumou. These prospects will form the basis of
our initial project assessment and potential for the development of
a "mining hub" at Bougouni. In addition, we have undertaken
exploration drilling at Bougouni South and regional testing at
Ngoualana that continue to develop our pipeline of exploration
targets to further grow our project.
"We expect this strong news flow to continue during the next
quarter with results returning from our completed drilling and from
the metallurgical testing and bulk sampling that has been happening
in parallel as we look to fast track Bougouni towards a decision to
mine in the near term."
Further Information
Bougouni Lithium Project - Drilling Update
Sogola-Baoule Prospect
As previously reported (1 May 2018, 21 May 2018 and 31 May 2018)
exploration drilling at the Sogola-Baoule prospect has continued to
define an extensive pegmatite body with current strike length
exceeding 1,400m that remains open at depth and along strike. The
interpretation of the Sogola-Baoule prospect is continuing to
develop as we have identified a "Main" vein with additional hanging
wall and footwall pegmatite veins that will add to the potential
economic viability of a mining operation at this prospect.
The pegmatite bodies intersected by the drilling are typical of
the Bougouni project and are spodumene rich with drill holes such
as MDRC066, MDRC073, MDRC082 and MDRC083 demonstrating the
consistent width and tenor of mineralisation. Geological logging of
drill holes targeting the eastern extension of the prospect has
revealed intersections up to 45m in down-hole width and this may
indicate the convergence of hanging wall pegmatite veins with the
"Main" vein. The Sogola-Baoule prospect has also been interpreted
to be "off-set" by fault structures, however the detailed drilling
has been able to locate and consistently extend the pegmatite
bodies.
The next phase of exploration at Sogola-Baoule will incorporate
diamond drilling to allow detailed geological logging,
metallurgical testwork and geotechnical review of ground conditions
to be incorporated in a mining assessment. Exploration drilling
will also focus on infill and definition work as well as continue
to test for extensions to the target zone. This drilling is
expected to commence as soon as possible following the conclusion
of the rainy season.
Assay results have been received for a further nineteen RC drill
holes. 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 %
--------- -------- ------- ----- ---- ---------- --------
MDRC066 1253455 652930 139 55 60 5 1.29
MDRC066 70 85 15 1.19
MDRC066 117 130 13 1.76
--------- -------- ------- ----- ---- ---------- --------
MDRC067 1253071 652661 118 58 64 6 1.28
--------- -------- ------- ----- ---- ---------- --------
MDRC073 1253470 652955 145 83 90 7 1.22
MDRC073 123 136 13 1.76
--------- -------- ------- ----- ---- ---------- --------
MDRC075 1253420 652955 127 69 83 14 1.42
--------- -------- ------- ----- ---- ---------- --------
MDRC078 1253515 653035 133 48 53 5 1.1
MDRC078 63 70 7 1.22
MDRC078 110 125 15 1.53
--------- -------- ------- ----- ---- ---------- --------
MDRC079 1253455 653035 157 43 59 16 1.46
--------- -------- ------- ----- ---- ---------- --------
MDRC080 1253395 653035 123 103 109 6 1.06
--------- -------- ------- ----- ---- ---------- --------
MDRC082 1253570 653135 135 76 82 6 1.46
MDRC082 110 132 22 1.58
--------- -------- ------- ----- ---- ---------- --------
MDRC083 1253510 653135 116 34 54 20 1.43
--------- -------- ------- ----- ---- ---------- --------
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.
An additional 22 drill holes are pending assay and will be
reported as soon as available.
Boumou Prospect
The Boumou prospect is located 3.5km to the northeast of the
Sogola-Baoule prospect. Exploration activity at the prospect prior
to this programme has consisted of geological mapping and rock chip
sampling that returned high-grade assay results (up to 2.52% Li(2)
O, RNS 14 March 2017), trenching and reconnaissance RC drill
testing that confirmed mineralised pegmatite veins.
The recently completed exploration and definition RC drilling at
Boumou consisted of 41 drill holes for 4,597m completed with all
assay results pending. The drilling programme targeted a wide zone
of outcropping pegmatite veins and has confirmed a consistent
pegmatite vein extending for over 400m with downhole intersections
up to 25m being returned from the drilling. Geological logging of
the drill holes confirms the pegmatite veins are consistent with
the Bougouni pegmatite veins in that they are spodumene rich, have
coarse mineral growth and have returned high-grade mineralisation
from surface sampling and reconnaissance drill testing.
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: +61 418 943
345
Allenby Capital Limited, Nominated Adviser
Jeremy Porter/Nick Harriss Tel: 020 3328
5656
SP Angel Corporate Finance LLP, Financial
Adviser & Broker Tel: 020 3470
John Mackay 0470
St Brides Partners Ltd, Financial PR
Susie Geliher/Megan Dennison Tel: 020 7236
1177
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END
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