Kodal Minerals Regulatory News (KOD)

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

1 May 2018

Kodal Minerals plc ('Kodal Minerals' or 'the Company')

Additional High Grade Lithium Mineralisation Confirmed at Exploration targets,

Bougouni Project, Southern Mali

Kodal Minerals plc, the mineral exploration and development company focussed on West Africa, is pleased to provide an update on the exploration drilling at the Company's Bougouni Lithium Project in Southern Mali ("Bougouni" or the "Project"). Final assay results have been received for the Project's reconnaissance drill testing at the Ngoualana prospect, which has returned high grade mineralisation to the south of the main pegmatite vein, and at the newly identified Bougouni South prospect, where assay results confirm the presence of mineralised pegmatite veins.

Highlights

· Ngoualana prospect southern offset returns high grade mineralisation. Broad zone over 26m interval returning intersections including:

§ 7m at 1.63% Li2O from 69m

§ 4m at 1.62% Li2O from 90m

· Ngoualana prospect exploration target open and to be drill tested in current campaign

· Bougouni South target confirms lithium mineralisation in reconnaissance drilling programme - follow-up drilling planned to commence in May

· Sogola-Baoule prospect extension of pegmatite vein to over 600m strike length confirmed in current drilling campaign, assay results pending

· Bulk sample about to commence with excavator on site and road access upgrades completed

· Environmental consultants Digby Wells completing preliminary social meetings as part of Environmental Impact Assessment for future mining application

Bernard Aylward, CEO of Kodal Minerals, said: "We are very pleased to be able to report these new lithium pegmatite veins intersected by our exploration drilling. The new zone at Ngoualana is very interesting as it is close to our existing main vein and these results open up a significant area for further testing. The target is a broad zone with multiple pegmatite veins that we will be looking to drill test rapidly to attempt to add further strike length and definition to this area. The identification of mineralisation at Bougouni South is also very encouraging and we are immediately moving one of our drill rigs to this prospect to determine its potential to host significant mineralisation.

"Our activity continues at Bougouni with the ongoing drilling campaign targeting the Sogola-Baoule prospect and field review of the drilling indicates that the pegmatite vein has now been extended to over 600m strike length and remains open along strike and at depth. This is an exciting time at our second advanced prospect at Bougouni.

"While drilling continues through to the beginning of the rainy season in June/July 2018, we have parallel activities underway with the mobilisation of a mining fleet to site to commence the large scale (5,000 tonne) bulk sampling , as well as our environmental assessment and metallurgical work continuing."

Further Information

Bougouni Lithium Project - Drilling Update

Ngoualana Prospect

The exploration drilling programme that targeted an offset position of the main Ngoualana vein that had been identified by Kodal's geological reconnaissance (as announced 13 February 2018) has confirmed the presence of high grade lithium mineralisation. The reverse circulation ("RC") drilling has identified a new area located approximately 200m to the south of the main vein with a series of pegmatite veins with a broad 30m wide interval returning mineralisation. This target area remains open in all directions and will be followed up by definition drilling as part of this current campaign. The geological review of the drilling indicates that this new area is similar to the main zone and, in conjunction with a review of our detailed ground magnetic survey, possible extensions to the prospect area will be targeted with further drilling.

Assay results have been received for the RC drill holes and intersections are tabled below, with intersections calculated using a 1% Li2O lower cut-off, maximum 2m internal dilution:

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 Li2O% by a factor of 2.153. Intersections are reported using a 1%Li2O lower-cut-off, and allowing for a maximum of 2m internal dilution. * Intersection KLRC062B is reported here as previously not released it was drilled in December 2017.

Bougouni South Prospect

The Bougouni South prospect was identified by geological mapping and reconnaissance sampling completed in January 2018. The prospect is located just 3km to the south of the Bougouni townsite, and reconnaissance drilling has targeted several zones of outcropping pegmatite veins. The geological reconnaissance indicates this is potentially a large prospect area, and the wide-spaced reconnaissance drill testing has returned mineralisation and confirmed that the zones of interest are up to 30m in width.

Follow-up drilling is planned to target along strike of the identified veins, to target extensions to the mineralised veins and to complete reconnaissance testing of the areas under shallow transported cover. This next phase of drilling is planned to determine the potential of the prospect to host significant mineralisation and allow prioritisation of our growing number of exploration prospects.

Assay results have been received for the RC drill holes and intersections are tabled below, with intersections calculated using a 1% Li2O lower cut-off, maximum 2m internal dilution:

Notes: As above table.

All samples were analysed by ALS Laboratories, with sample receipt and preparation at ALS Bamako Mali with final analysis completed at ALS Johannesburg, South Africa. Samples analysis was completed with a four acid digest and final detection by ICP-AES method.

Sogola-Baoule Prospect

Exploration drilling is continuing at the Sogola-Baoule prospect and is targeting extensions to the zone of outcropping mineralisation. Geological mapping and interpretation of our geophysical data indicated potential fault offsets of the zone and our current drilling has confirmed this. The geological logging of the drillholes is indicating a continuous main vein, up to 26m in width, with consistent sub-veins up to 10m in width over a strike length now exceeding 600m. Geological logging is continuing to identify spodumene rich pegmatite, with the veins intersected beneath shallow cover of between 6 and 10m depth.

Assay results are pending for the drilling and will be reported as soon as available.

Bougouni Lithium Project - Development Activities Update

The exploration campaign continuing at Bougouni has a range of activities occurring in parallel as the Company attempts to fast track the development of the Bougouni project.

The 5,000t bulk sample has commenced with the mobilisation of a mining fleet to site. Sampling will commence with the extraction of high grade mineralisation at Ngoualana. The project is expected to take up to three months, and initial road repair and site clearing has been completed to allow truck access for loading of material to transport to the sea port at Dakar. Further updates will be provided as work progresses.

Environmental assessment is continuing with consultants from Digby Wells on site undertaking initial water sampling and preliminary community social consultations. This assessment work is an important starting point for future applications for mining licences and to inform community interaction as we look to develop the Bougouni Lithium project.

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% Li2O through to 1.4% Li2O. The intersections reported in this announcement have been estimated using a 1.0% Li2O 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% Li2O. 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 the Company's Bougouni lithium project.

Recent lithium concentrate (grade 6%) prices are approximately US$600/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: