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

11 August 2017

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

Diamond core assay results confirm high-grade pegmatite intersections at Ngoualana Prospect within Bougouni Lithium Project, Mali

Kodal Minerals plc, the mineral exploration and development company focussed on West Africa, is pleased to announce the results of the diamond core drilling completed at the Ngoualana prospect, located at the Company's Bougouni lithium project in Southern Mali ("Bougouni" or the "Bougouni Project").

Highlights

· Ngoualana prospect: final results for the five diamond drill holes for 362.1m of core have been received. Intersections include:

o 41.5m at 1.71% Li2O from 45.89m;

o 27.25m at 1.61% Li2O from 28.65m;

o 26.25m at 1.51% Li2O from 30.46m; and

o 17m at 1.69% Li2O from 25.55m.

· Diamond core targeted shallow depths to confirm interpreted width and nature of mineralisation, and all holes returned mineralisation as expected.

· Geological logging of diamond core and comparison to assay results confirms consistent mineralisation throughout the zones and spodumene rich pegmatites. 

· Ngoualana prospect remains open at depth and along strike and further drilling is planned following cessation of the annual rains.

Bernard Aylward, CEO of Kodal Minerals, said: "These diamond core drill results provide us with a high-level of confidence in the information captured from the earlier reverse circulation ("RC") drilling, and continue to demonstrate the high-grade mineralisation and continuity of the Ngoualana prospect. We will continue with the metallurgical testing of the diamond core to improve our understanding of the characteristics of the mineralisation. We anticipate being able to extend this prospect when we recommence drilling following the rainy season.

"We are continuing with our field programme with our geological team at Bougouni preparing for the ground magnetic survey that may assist in delineating key structures and controls on mineralisation around the Ngoualana prospect, as well as planning for a very busy field season ahead. We are well funded and have strong support to maintain the rapid exploration and delineation programme."

Further Information

Bougouni Lithium Project

The Bougouni Project consists of two concessions, the Kolassokoro and Madina concessions, which cover a contiguous area of 500km2. 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. Kodal has been exploring the concessions since September 2016 and has completed a series of geological reconnaissance, rock chip sampling, geophysical review, trench sampling and RC and diamond drilling. The exploration activities continue to enhance the project, with numerous exploration targets developed and drill results confirming high-grade mineralisation.

Ngoualana Prospect

Kodal completed diamond drill testing at the Ngoualana prospect in June 2017 with a total of five diamond drill holes for 362.1m completed. All results for the diamond core have now been received.

The Ngoualana prospect consists of one wide main vein that is continuous throughout the prospect, and multiple parallel and subsidiary pegmatite veins. The prospect has been confirmed over a strike length of 650m, and remains open along strike with the final drill holes confirming lithium mineralisation. The prospect remains open at depth, with drilling having tested to greater than 225 vertical metres.

Geological logging of the diamond core confirmed the information from the RC drilling and highlighted the width and continuity of the pegmatite vein. The pegmatite is rich in spodumene and analysis of the assays confirms the high-grade results are clearly associated with the spodumene rich zones. The review of assay results further confirms that the mineralisation is consistent throughout the pegmatites, with the complete vein mineralised.

Further detailed metallurgical test work will be completed on the mineralised zones of the drill core, and a composite bulk sample is being collected.

Summary Drill Intersections

Intersections reported in this announcement are tabled below, with intersections calculated using a 1% Li2O lower cut-off, maximum 2m internal dilution and only reporting intersections of greater than 5m width. The intersections have been reviewed against the logged geology to confirm zones.

The 1% Li2O lower cut-off is a regarded as a high limit for reporting and reflects the nature of the spodumene rich pegmatite units and the consistency of the mineralised zones.

Table 1: Summary diamond core intersection, Ngoualana prospect August 2017

Notes: Drill holes are diamond core drill holes completed by specialist contractor Geodrill Limited. Drill holes have been sampled on a geological basis with zones of pegmatite identified in geological logging and selectively sampled on a 0.25m interval (or shorter for geological contacts). Samples are half-core HQ core size. Drill hole collars are surveyed using a hand-held GPS with sub1-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 based on geological boundaries. Samples have been analysed by ALS Global. Assay results are reported as Li% and converted to Li2O% by applying a factor of 2.153. Intersections are reported using a 1%Li2O lower-cut-off, and allowing for a maximum of 2m internal dilution.

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**

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