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

13 February 2018

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

Drilling Results Confirm Sogola-Baoule Extension at Bougouni Lithium Project

Kodal Minerals plc, the mineral exploration and development company focussed on West Africa, is pleased to provide the final drilling assay results received for the extension drill testing at the Sogola-Baoule prospect at its Bougouni Lithium Project located in southern Mali ('Bougouni').

Highlights:

· Sogola-Baoule prospect tested with 10 reverse circulation ('RC') drill holes for 1,263m completed. These are the results from the final six holes following the announcement on 18 January 2018 of the results from the first four holes.

· Drilling confirms extension of multiple pegmatite veins, with strike length of at least 450m and remaining open to east and west and at depth

· Significant intersections not previously reported include:

o 24m at 1.58%Li2O from 115m in drill hole MDRC026;

o 8m at 1.50%Li2O from 133m in drill hole MDRC025; and

o 13m at 1.17%Li2O from 101m in drill hole MDRC027.

· Geological mapping and detailed ground geophysical survey highlight extension and fault offset targets that will be drill tested in the next programme at Sogola-Baoule.

Bernard Aylward, CEO of Kodal Minerals, said: "The Sogola-Baoule prospect is the second target that we have now been able to drill test over a consistent strike length at the Bougouni Project. The initial geological mapping and surface sampling indicated multiple pegmatite veins in close proximity, and this has been confirmed by our drilling where all holes are returning multiple mineralised intersections. The geological interpretation is showing continuity of high-grade pegmatite bodies that currently remain open along strike. The proximity of multiple pegmatite bodies is significant and could have a positive impact on scaling opportunities for future development.

"As our exploration campaign continues at Bougouni we anticipate further results from the Ngoualana prospect where geological logging of drill holes indicates further strike extensions, and geological reconnaissance has located evidence of pegmatite bodies beyond the current drilling.

"These exploration drilling results, combined with the geological reconnaissance highlight multiple priority targets that continue to suggest a "Mining Hub" can be developed at Bougouni, and our campaign of drilling, metallurgy and bulk sample excavation will provide critical information for this scenario to be tested. We anticipate further newsflow over the coming months as exploration carries on at a rapid rate."

Sogola-Baoule Prospect

The Sogola-Baoule prospect is located in the Madina Concession approximately 10km to the west of the township of Bougouni. Access to the prospect is via bitumen road and local access track. Exploration activity at the prospect has consisted of initial geological reconnaissance mapping, rock chip sampling, trenching and reconnaissance drilling. All initial exploration activity returned positive results, and upon review it was recognised that the multiple veins have potential to provide a bulk-mining scenario.

The RC drilling programme reported here consists of 10 RC drill holes for 1,263m completed that targeted the south-western extension of the pegmatite bodies. The drilling was designed to follow-up RC drill hole MDRC015 that had returned multiple intersections including 12m at 1.68%Li2O from 216m, 12m at 1.59%Li2O from 241m and 17m at 1.79%Li2O from 277m. The drilling was designed to confirm continuity of these intersections, target the up-dip and potential near-surface mineralisation and extend the prospect.

Geological logging and evaluation of the drilling has confirmed multiple mineralised pegmatite veins and extensions to the defined bodies. The prospect is covered by recent alluvial gravel up to 14m in thickness and the bodies have been delineated beneath this cover. Additional drill testing is proposed to target the extensions both to the southwest and northeast and provide additional data to allow an evaluation of the prospect.

These assay results are the final for the completed drilling at the Sogola-Baoule prospect. Intersections 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:

Note: All intersections for the Sogola-Baoule prospect drilling reported. Holes previously reported are MDRC021B and MDRC022

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 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 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.

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

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. Chemical grade spodumene concentrate (typically containing 6% Li2O) is sold for use in battery manufacturing and other industrial applications. 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: