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(Alliance News) - Kodal Minerals PLC said Monday it has submitted a mining license application to the Mali government for the development of the Bougouni lithium project in southern Mali.
The mineral exploration company said the application, lodged with the country's mining department, covers the proposed open-pit mining and processing operations at Bougouni.
As part of the application, the company said it has also completed a feasibility study.
The feasibility study revealed a minimum 8.5 year mine life, producing on average 220,000 tonnes of 6% spodumene concentrate per year.
Kodal Minerals predicts life of mine revenue to exceed USD1.4 billion, with an initial concentrate sale price of USD680 per ton based on operations commencing in the second half of 2021, and increasing 2% year-on-year.
Chief Executive Efficer Bernard Aylward said: "The expected timeframe for our operation to be producing spodumene concentrate is in the second half of 2021, and on current forecasts we will be coming into production in an improving lithium market, which provides further confidence in the robustness of the project."
Kodal Minerals shares were trading 4.6% higher in London at 0.05 pence each on Monday morning.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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