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

03 May 2017

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

Further High-Grade Lithium Mineralisation at Bougouni Project

Kodal Minerals plc, the mineral exploration and development company focussed on West Africa, is pleased to announce further high-grade lithium mineralisation has been returned from the first-pass drilling at the new prospects "Sogola-Baoule" and "Boumou" at the Company's Bougouni Lithium Project in Southern Mali ("Bougouni" or the "Project"). Exploration drilling is continuing with the drill rig currently returned to begin immediate follow-up at Sogola-Baoule. Additional assay results are pending for the "Orchard" and "Ngouanala" prospects and will be reported to the market as soon as they become available.

Highlights

· Final assay results have been received for the drilling at the Sogola-Baoule and Boumou prospects confirming high-grade lithium mineralisation

· Sogola-Baoule prospect: results received for the final drill hole with multiple intersections of lithium bearing pegmatite including:

o 8m at 1.24% Li2O from 40m;

o 7m at 1.29% Li2O from 63m; and

o 8m at 1.62%Li2O from 104m

· Boumou prospect: results received for the remaining five of the six drill holes. New intersections include:

o 13m at 1.44% Li2O from 111m, including 5m at 2.02% Li2O from 116m;

o 8m at 1.63% Li2O from 62m; and

o 10m at 1.55% Li2O from 23m

· Infill and extension drilling has been completed at the Ngouanala prospect and all samples have been submitted to the laboratory for analysis

· Drilling has now re-commenced at the Sogola-Baoule prospect to begin immediate follow-up and extension of the initial results

Bernard Aylward, CEO of Kodal Minerals, said: "These final assay results from the first pass drilling at the new Boumou and Sogola-Baoule prospects confirm additional zones of high grade mineralisation. Exploration drilling is continuing to target extensions along strike and at depth to define the size potential of the areas and demonstrate how these prospects will complement the more advanced Ngouanala prospect.

"We have now completed the second stage drilling at Ngouanala with drilling targeting an approximate 600m strike length, and testing to depth of greater than 150m. This programme is focussed on providing detailed information for the high-grade pegmatite vein previously identified with the aim of providing sufficient information to support a preliminary JORC compliant Mineral Resource estimate. Drilling has continued to confirm high-grade lithium mineralisation, and the prospect remains open in all directions. Assay results are pending for this latest phase, however it is anticipated we will return to the prospect to continue drilling strike extensions. We will also be planning diamond drilling to provide additional geological information on the structure and provide samples for detailed metallurgical and geotechnical test work."

Further Information

Bougouni Lithium Project -Drilling Update

Final results for the first-pass drilling at the Sogola-Baoule prospect and for the Boumou prospect have been received. This initial phase of drilling was designed as a wide-spaced test to confirm the surface rock chip and trench anomalism. These drill results indicate that high-grade lithium mineralisation is associated with the pegmatite veins, and these prospects remain open along strike and at depth. Follow-up drilling is in progress at the Sogola-Baoule prospect, and will be planned for the Boumou prospect following geological review and interpretation of the drilling results.

A summary of the drilling completed and intersections received is:

· Sogola-Boule: Five drill holes for 864 metres completed. The drilling is returning multiple pegmatite veins, and preliminary review is indicating continuity along strike of good width and grade pegmatites. The prospect remains open along strike and at depth, and follow-up and extension drilling has commenced

· Boumou: Six drill holes for 842 metres completed. All drill holes have returned significant lithium mineralisation and geological interpretation is continuing to determine the continuity and structural controls on the multiple pegmatite veins. The prospect remains open along strike and at depth, and geological mapping of the area continues to reveal further zones of significant pegmatite intrusion that will require first-pass drill testing. The Boumou prospect is defined over a significant area, and the amount of pegmatite veins is an indication of the high prospectivity of this area

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:

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.

A total of 853 samples are reported in this announcement, with an assay range varying from a minimum of below detection limit (0.005% Li) to a maximum result of 2.97% Li2O. Samples are reported as Li% and converted to Li2O% by multiplication of a factor of 2.153.

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 could 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**

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