TIDMKOD
RNS Number : 1453B
Kodal Minerals PLC
31 May 2023
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
31 May 2023
Kodal Minerals plc
("Kodal Minerals", "Kodal" or the "Company")
Bougouni Lithium Project Final Assay Results Confirm High-Grade
Mineralisation
and
Update on Funding Package - Further Extension of Long Stop Date
to 30 June 2023
Kodal Minerals, the mineral exploration and development company
focused on lithium and gold assets in West Africa, provides an
update on the Bougouni Lithium Project Funding Package with Hainan
Mining Co. Limited ("Hainan") and its wholly owned UK-incorporated
subsidiary Xinmao Investment Co. Limited ("Xinmao") and the
agreement of all parties to allow a further extension of the long
stop date to 30 June 2023.
The Company is also pleased to provide an update on the
completed drilling at the Company's Bougouni Lithium Project
located in southern Mali. In this regard, the Company reports
additional lithium mineralised intersections at the Boumou,
Bougouni South and Ngoualana prospects .
Highlights:
-- Further wide, high-grade extensions returned at the Boumou
prospect with significant results including:
o 24m at 1.13% Li(2) O from 55m
including 8m at 1.37% Li(2) O from 55m in drill hole
KLRC193.
-- The Boumou prospect is a high priority target for further
drilling to extend and define the pegmatite bodies to allow a new
resource estimate to be completed.
-- Final results have been received for the Bougouni South
drilling programme with significant lithium mineralised
intersections including:
o 11m at 1.14% Li(2) O from 71m; and
6m at 1.48% Li(2) O from 101m in drill hole MDRC135.
-- Drilling has confirmed extensive pegmatite veins at Bougouni
South that require additional exploration including diamond
drilling to determine structural control and extent of
mineralisation.
-- At the Ngoualana prospect diamond drill holes completed along
the strike of the orebody to obtain variability test samples have
returned wide high-grade intersections up to:
o 37m at 2.17% Li(2) O from 3m to end of hole in drill hole
MT004.
Bernard Aylward, CEO of Kodal Minerals, remarked: "Kodal and our
partners Hainan and Xinmao continue to work together to finalise
all conditions precedent for the completion of the funding package.
While it is disappointing that we have not yet finalised this
process and require a further extension of the long stop date, the
parties remain committed to the transaction and are working
together on the preliminary engineering and development processes
required to ensure we move quickly into development upon completion
and receipt of funds.
"The assay results received for the drilling campaign continue
to demonstrate significant extensions at the Boumou prospect with
wide high grade pegmatite zones further extended. We are very
confident that further drilling will continue to expand this
prospect and it is now the priority target for infill and extension
drilling. Upon completion of the next phase of drilling at the
Boumou prospect the JORC Mineral Resource estimate will be updated
to be included in the long-term planning and the timing of the
possible further development of a flotation plant at Bougouni in
addition to the initial proposed DMS (dense media separation)
plant.
"The Company is continuing with the final metallurgical testing
and engineering design for the proposed DMS development, and we
expect to be able to update shareholders on ongoing activity as
details become available."
FURTHER INFORMATION
Bougouni Lithium Project - Funding Package
Kodal, Kodal Mining UK Limited ("KMUK"), Hainan and Hainan's
wholly owned UK-incorporated subsidiary Xinmao have agreed to an
extension of the deadline for the completion of the funding package
announced on 19 January 2023 to 30 June 2023 (originally 30 April
2023, and first extended to 31 May 2023).
The extension is required for conditions precedent to be
satisfied, including the transfer of the Bougouni Project to a new
Mali mining company owned by Kodal's recently incorporated UK
subsidiary KMUK. This restructuring is in progress and the parties
have agreed to further extend the completion deadline for the
funding package to 30 June 2023.
The parties are fully committed to the completion of the funding
transaction as soon as possible and continue to work together to
prepare for the development of the project with activities
including additional metallurgical testwork, engineering planning
and review and finalisation planning for the proposed DMS
development.
The approvals the Hainan and Xinmao have received from the
Chinese Government authorities, and as announced by the Company on
13 April 2023, remain valid for the parties to complete its funding
and investment, including "Overseas Project Investment Filing
Certificates" from the Hainan Province National Development and
Reform Commission ("NDRC") and Company Overseas Investment
Certificate from the Department of Commerce of Hainan Province.
Ngoualana Prospect
At the Ngoualana prospect a series of diamond drillholes were
completed to provide variability samples along the strike of the
orebody for additional metallurgical testwork. The drilling
targeted near surface mineralisation to assist in planning of the
initial mining period.
As expected, the drillholes intersected coarse grained spodumene
rich pegmatite veins consistent with all previous drilling. The
samples visually contained abundant spodumene crystals and
highlight this prospect as a prime opportunity for the DMS process
to successfully produce a high-grade spodumene concentrate.
All assay results have been received for the drill holes, and
high-grade mineralisation has been confirmed commencing from
surface. All significant intersections are tabled below:
Hole_ID Northing Easting RL Dip/Azi Depth From To Width Grade
Li(2)
O
MT001 1255398 664157 330 -90/000 40 6 40 34 1.70
--------- -------- ---- -------- ------ ----- --- ------ -------
MT002 1255388 664200 330 -90/000 40 4 40 36 1.65
--------- -------- ---- -------- ------ ----- --- ------ -------
MT003 1255380 664249 330 -60/195 63.2 21 47 26 1.69
--------- -------- ---- -------- ------ ----- --- ------ -------
MT004 1255355 664289 330 -90/000 40 3 40 37 2.17
--------- -------- ---- -------- ------ ----- --- ------ -------
MT005 1255351 664321 330 -90/000 40 8 40 32 1.67
--------- -------- ---- -------- ------ ----- --- ------ -------
MT006 1255327 664400 330 -90/000 40 26 40 14 1.62
--------- -------- ---- -------- ------ ----- --- ------ -------
Notes: Drill holes are diamond core drill holes. Drill holes
have been sampled on a geological basis and at a maximum of 1.0m
downhole width. Samples have been cut with a diamond saw and
sampled on a representative basis. Drill hole collars are surveyed
using a differential GPS with sub 1-metre accuracy, coordinate
system WGS84 - Zone 29N, and all holes are surveyed down-hole for
dip and azimuth on approximately 30m intervals. All drill holes are
geologically logged, and sampling for analysis is 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 geological boundaries
for logged pegmatite, with a nominal 0.5%Li (2) O lower-cut-off and
allowing for a maximum of 2m internal dilution.
A full summary of the metallurgical testing programme will be
provided when results are received. Metallurgical testwork is being
completed at laboratories in China, Australia and South Africa to
allow comparison and confirmation of best process.
Boumou Prospect
Final assay results have been received for the 7 RC drill holes
for a total of 1,344m that were completed at the Boumou prospect in
the recent drilling campaign. The drilling has successfully
targeted extensions to the west of the defined resource zone with
multiple wide high grade mineralised pegmatite veins
intersected.
Final assay results have been received for all drill holes and
confirm the presence of wide, high grade lithium mineralisation
with all significant results for the drilling tabled below:
Hole_ID Northing Easting RL Dip/Azi Depth From To Width Grade
Li(2)
O
190 55 79 24 1.13
KLRC193 1255768 655293 330 -50/180 incl 55 63 8 1.37
113 118 5 1.31
125 128 3 1.37
161 164 3 1.17
--------- -------- ---- -------- -------- ----- ----- ------ -------
183 45 57 12 1.14
KLRC194 1255560 655299 330 -50/000 incl 49 57 8 1.36
--------- -------- ---- -------- -------- ----- ----- ------ -------
KLRC196B 1255683 655083 330 -50/180 191 81 85 4 1.49
126 134 8 1.25
146 148 2 0.96
166 173 7 1.13
--------- -------- ---- -------- -------- ----- ----- ------ -------
KLRC197 1255613 655083 330 -50/180 162 72 81 9 1.26
93 129 36 1.29
155 157 2 0.80
--------- -------- ---- -------- -------- ----- ----- ------ -------
KLRC198 1255543 655083 330 -50/180 174 56 58 2 0.98
78 129 51 1.08
Incl 89 95 6 1.50
incl 112 121 9 1.77
137 146 9 1.24
--------- -------- ---- -------- -------- ----- ----- ------ -------
KLRC199 1255473 655083 330 -50/180 210 42 73 31 1.23
85 87 2 0.99
101 108 7 1.20
--------- -------- ---- -------- -------- ----- ----- ------ -------
Notes: Drillholes KLRC197, KLRC198, KLRC199 previously reported
19 April 2023. Drill holes are RC drill holes. Drill holes have
been sampled on a 1.0m basis with samples collected via a riffle
split system. Drill hole collars are surveyed using a differential
GPS with sub 1-metre accuracy, coordinate system WGS84 - Zone 29N,
and all holes are surveyed down-hole for dip and azimuth on
approximately 30m intervals. All drill holes are geologically
logged, and sampling for analysis is 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 geological boundaries for logged
pegmatite, with a nominal 0.5%Li (2) O lower-cut-off and allowing
for a maximum of 2m internal dilution.
The Boumou prospect has a current Inferred Resource that remains
open along strike, and this recent phase of drilling indicates a
potential strike length exceeding 750m and up to 1km, providing
potential for significant growth in the Boumou prospect defined
resource.
The next stage of exploration at Boumou is to undertake infill
drilling to provide geological control on the interpretation of the
lithium mineralised pegmatite veins as well as continue the
extension drilling to continue to expand the prospect as much as
possible.
Bougouni South Prospect
At the Bougouni South prospect a total of 6 RC drill holes for
989m were completed as part of the Company's recent drilling
campaign. The programme has intersected consistent wide pegmatite
veins with individual veins up to 48m in downhole width and a
cumulative thickness of pegmatite in hole up to 91m in drill hole
MDRC135. The geological logging indicates fine to medium grained
mineralisation possibly most suited to flotation processing. The
drilling programme has extended the known pegmatite veins to over
500m in strike length and remains open along strike.
All assay results for the programme have been received, and
while the results confirm that the pegmatite veins are mineralised,
the grade is generally lower tenor. The review of the geology
indicates potential for large veins to be defined and an economic
assessment of the prospect is required to determine if the
metallurgical recovery of spodumene concentrate, and the nature of
the veins will support open pit mining.
The next phase of exploration proposed is a series of diamond
drillholes to allow evaluation of the geological controls on the
pegmatite veins and supply samples for initial metallurgical
testwork. The prospect is located close to the planned processing
facility and infrastructure and may prove to be complementary to
the mining development.
Final assay results have been received for all drill holes and
significant lithium mineralised intersections are tabled below:
Hole_ID Northing Easting RL Dip/Azi Depth From To Width Grade
Li(2)
O
MDRC133 1259108 664447 330 -50/000 187 43 47 4 0.88
58 60 2 1.05
72 74 2 1.18
135 142 7 0.46
135 137 2 0.84
--------- -------- ---- -------- ------- ------ ------ ------ -------
MDRC134 1258917 664300 330 -50/000 222 153 165 12 0.77
incl 159 164 5 1.27
--------- -------- ---- -------- ------- ------ ------ ------ -------
MDRC135 1258877 664200 330 -50/000 220 69 108 39 0.93
Incl 71 82 11 1.14
Incl 85 90 5 1.05
incl 101 107 6 1.48
--------- -------- ---- -------- ------- ------ ------ ------ -------
MDRC136B 1258861 664201 330 -60/000 93 37 48 11 0.80
Incl 44 48 4 1.33
--------- -------- ---- -------- ------- ------ ------ ------ -------
MDRC137 1258850 664102 330 -50/000 252 44 46 2 1.31
62 64 2 0.87
105 113 8 1.05
119 126 7 0.83
incl 122 126 4 1.11
188 190 2 1.24
--------- -------- ---- -------- ------- ------ ------ ------ -------
Notes: Drill holes are RC drill holes. Drill holes have been
sampled on a 1.0m basis with samples collected via a riffle split
system. Drill hole collars are surveyed using a differential GPS
with sub 1-metre accuracy, coordinate system WGS84 - Zone 29N, and
all holes are surveyed down-hole for dip and azimuth on
approximately 30m intervals. All drill holes are geologically
logged, and sampling for analysis is 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 geological boundaries for logged
pegmatite, with a nominal 0.5%Li (2) O lower-cut-off and allowing
for a maximum of 2m internal dilution.
Qualified Person's Statement
The Mineral Resource estimates have been prepared by Dr Matthew
Cobb who is a Member of the Australian Institute of Geoscientists.
Dr Cobb is a Principal Resource Consultant with CSA Global and 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. Dr Cobb consents to the inclusion in this
announcement of the matters based on his information in the form
and context in which it appears.
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: +61 418 943 345
Allenby Capital Limited, Nominated Adviser
Jeremy Porter/Vivek Bhardwaj/Nick Harriss Tel: 020 3328 5656
SP Angel Corporate Finance LLP, Financial Adviser & Joint Broker
John Mackay/Adam Cowl Tel: 020 3470 0470
Canaccord Genuity Limited, Joint Broker
James Asensio/Gordon Hamilton Tel: 0207 523 4680
St Brides Partners Ltd, Financial PR
Susie Geliher/Ana Ribeiro Tel: 020 7236 1177
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