TIDMKOD
RNS Number : 8101V
Kodal Minerals PLC
02 February 2017
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
2 February 2017
Kodal Minerals plc
('Kodal' or 'the Company')
First Drilling Assays at Bougouni Lithium Project
Kodal Minerals plc, the mineral exploration and development
company focussed on West Africa, is pleased to announce the receipt
of the first assay batches for the reverse circulation ("RC")
drilling programme at the Bougouni lithium project, Southern
Mali.
Highlights
-- First drill hole at the Ngoualana prospect has returned 21m
at 1.7% Li(2) O from 62m depth, including a high grade core of 12m
at 1.81% Li(2) O from 69m
-- A further seven drill holes from Ngoualana are awaiting assay
results, with drilling continuing to intersect a wide (up to 30m
down hole) main pegmatite vein and multiple subsidiary and parallel
veins
o A strike length of over 250m has been intersected in drilling
and remains open along strike
-- Drilling at the Sogola prospect has confirmed high grade,
near surface mineralisation and intersections include 3m at 1.92%
Li(2) O from surface, including a maximum value of 2.94% Li(2)
O
-- Results indicate that at Sogola the pegmatite has split into
several narrow veins that remain open at depth and along strike
-- Drilling at the Kola prospect has confirmed the pegmatite
veins and returned high grade assays up to 2m at 1.94% Li(2) O
-- Kola is a narrow, continuous pegmatite unit that remains open at depth and along strike
o Coarse spodumene has been noted in drilling and this closely
relates to the assay results - assay results are pending for the
additional two Kola drill holes
Bernard Aylward, CEO of Kodal Minerals, said: "This first
drilling intersection from Ngoualana is highly encouraging, with
wide, high grade mineralisation intersected in drilling confirming
our surface observations. We are eagerly awaiting the final assay
results as our drilling continued to intersect a wide, coarse
grained pegmatite body with high spodumene content. The Ngoualana
prospect remains open along strike and at depth, and we will be
returning to drill this prospect as soon as possible.
"Kodal's strategy is to build a major project within our
Bougouni licence area that will be amenable to mining extracting
from multiple sources. The initial drilling at Sogola and Kola has
confirmed the high grade lithium mineralisation, however the
pegmatite bodies are narrow and exploration will continue to assess
these prospects as potential support for development of a
significant zone at Ngoualana.
"We have a busy exploration programme planned for the months
ahead, with a focus on our lithium projects at Bougouni and
Diendio. We expect to commence a follow up drilling programme in
February 2017 and to advance the priority targets with the aim of
establishing a maiden resource as soon as possible."
Further Information
Lithium
The pegmatite veins intersected by drilling at the Bougouni
lithium project 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.
RC Programme Information
Samples were analysed by ALS Global ("ALS"), with sample receipt
at ALS Bamako Mali, sample preparation at ALS Ouagoudougou, Burkina
Faso, with final analysis completed at ALS Vancouver, Canada.
Sample analysis was completed with a four acid digest and final
detection by ICP-AES method.
A total of 328 samples have been received to date, with a
further 400 samples pending. The maximum assay value returned is
2.92% Li(2) O and is associated with a coarse grained, spodumene
rich pegmatite unit. A total of 54 samples (16% of samples
received) returned assay values greater than 1% Li(2) O, and all
pegmatites intersected in the drilling were mineralised.
RC Drilling Programme
The first pass RC drilling programme targeting the Sogola,
Ngoualana and Kola pegmatite veins at Bougouni was completed in
mid-December 2016. The programme consisted of 18 drill holes for
1,323m completed (6 holes for 415m at Sogola, 8 holes for 712m at
Ngoualana and 4 holes for 196m at Kola) with all geological logging
and sampling completed. The assay results received to date are for
the Sogola prospect, one drill hole of the Ngoualana prospect and
two holes for the Kola prospect.
Geological review of the drilling programme indicates that the
Ngoualana vein has been confirmed for over 250m strike length and
remains open along strike and at depth. Drilling intersected a wide
main vein (up to 20m downhole width) with multiple parallel and
subsidiary pegmatite veins. Logging of the drill holes indicated
coarse spodumene minerals within the pegmatite, confirming the
surface outcrop. The Ngoualana vein is hosted in a sequence of
metasedimentary rocks.
At the Sogola prospect, drilling intersected a series of
pegmatite veins of variable width (>8m) and strike length
exceeding 300m. The prospect remains open along strike and at
depth, with coarse spodumene again identified in the drill chips.
The Sogola vein is hosted in a granodiorite unit.
At the Kola prospect, the drilling intersected a strike
extensive pegmatite vein that was continuous from surface to depth,
and has a strike length exceeding 400m. The prospect remains open
along strike and at depth, however the vein is narrow where
currently explored.
A summary of the drill intersections received to date is tabled
below:
Hole Li(2)
Hole Depth From To Thickness O
Prospect Id Northing Easting m m m m %
----------- --------- --------- -------- --------- ------- ------- ---------- ------
Ngoualana KLRC001 664270 1255407 132 15.00 22.00 7.00 1.41
62.00 83.00 21.00 1.70
includes 69.00 81.00 12.00 1.81
113.00 114.00 1.00 1.24
--------------------- --------- -------- --------- ------- ------- ---------- ------
Kola KLRC010 667048 1256824 40 25.00 27.00 2.00 1.94
----------- --------- --------- -------- --------- ------- ------- ---------- ------
Sogola MDRC001 652856 1254120 20 0.00 3.00 3.00 1.92
includes 0.00 1.00 1.00 2.92
--------------------- --------- -------- --------- ------- ------- ---------- ------
Sogola MDRC002 652856 1254120 21 0.00 4.00 4.00 1.51
----------- --------- --------- -------- --------- ------- ------- ---------- ------
Sogola MDRC003 652777 1254125 92 1.00 7.00 6.00 1.23
54.00 56.00 2.00 1.71
--------------------- --------- -------- --------- ------- ------- ---------- ------
Sogola MDRC004 652777 1254175 96 8.00 9.00 1.00 1.22
29.00 30.00 1.00 1.77
--------------------- --------- -------- --------- ------- ------- ---------- ------
Sogola MDRC005 652886 1254200 120 101.00 105.00 4.00 1.41
includes 102.00 104.00 2.00 2.01
--------------------- --------- -------- --------- ------- ------- ---------- ------
Notes: All drill holes are reverse circulation drilling. Drill
holes have been sampled on 1 metre and 3 metre composite basis with
samples collected via riffle splitter. Samples analysed by ALS
Global. Assay results are reported as Li% and converted to Li(2) O%
by a factor of 2.153. Drill hole collars surveyed by hand-held GPS,
coordinate system WGS84 - Zone 29N. Sample intervals are downhole
thickness.
Bougouni Project
Bougouni consists of two concessions, Kolassokoro and Madina,
which cover a contiguous area of 500km(2) . Kodal has recently
entered into Option to Purchase and Access agreements that grant
Kodal exclusive rights to explore and develop any identified
mineralisation within the project area. Details of the agreements
were announced in August and September 2016.
The project area is located approximately 180km south of Bamako,
the capital of Mali, with excellent access to the project via
sealed road from Bamako. The project area is located close to grid
power, has access to good water supply and for future development
will be able to link to a road-rail-port network from Mali to the
Cote d'Ivoire port at Abidjan.
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/Laura Harrison 0470
----------------------------------------- ----------------
St Brides Partners Ltd, Financial
PR Tel: 020 7236
Susie Geliher/Lottie Brocklehurst/Megan 1177
Dennison
----------------------------------------- ----------------
This information is provided by RNS
The company news service from the London Stock Exchange
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