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

22 February 2018

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

Further High-Grade, Shallow Lithium Mineralisation at Ngoualana Prospect

Bougouni Project, Southern Mali

Kodal Minerals plc, the mineral exploration and development company focussed on West Africa, is pleased to provide an update on drilling progress at the Company's Bougouni Lithium Project in Southern Mali ("Bougouni" or the "Project"). Results from a further sixteen drill holes at the Ngoualana prospect, where drilling has successfully extended the prospect to the east, have continued to return high grade mineralisation. Assay results for a further nineteen drill holes at Ngoualana are pending.

Highlights

· Assay results at Ngoualana prospect continue to return high grade lithium mineralisation.

· 16 drill holes completed with high grades of up to 1.75% Li2O targeting the infill and extension drilling of the main prospect as well as holes testing a southern target.

· Multiple mineralised pegmatite intersections in drill holes and shallow depth intersections including:

o 18m at 1.75% Li2O;

o 20m at 1.71% Li2O;

o 17m at 1.63% Li2O;

o 18m at 1.54% Li2O;

· Ngoualana strike length extended to over 850m and remains open along strike. Recent geological traverses have located pegmatite "float" extending beyond drilling.

Bernard Aylward, CEO of Kodal Minerals, said: "We are delighted to see that the Ngoualana prospect continues to return strongly mineralised intersections and is defining continuity of shallow, high grade lithium mineralisation that is important for the economic development of the Project. The extension drilling continues to outline parallel and splay structures that also contain mineralised pegmatite bodies and it is exciting to see our exploration model advancing well as we intersect additional pegmatite bodies close to our existing prospects.

"Exploration drilling recommenced in January, which was initially focussed on new exploration targets located to the west of Ngoualana where outcropping pegmatite bodies have been identified. In addition, geological field traverses to the east of Ngoualana prospect have identified areas of possible pegmatite extension and these are currently being drilled.

"Despite drilling being slower than anticipated as a result of some difficult ground following the wet season, we are happy to see conditions improve as we move to the next phase of drilling. We remain fully funded to continue with our work programme, and further assay results will be reported as soon as they become available."

Further Information

Bougouni Lithium Project -Drilling Update

Exploration drilling at the Ngoualana prospect has targeted strike extensions to the main pegmatite body and completed reconnaissance testing of parallel targets. A total of 45 reverse circulation ("RC") drill holes for 5,619m have been completed since October 2017. Assay results have been returned for twenty-six drill holes to date and these initial results confirm that the Ngoualana prospect has been extended to over 850m in strike length and currently remains open to the east and west. Geological reconnaissance to the east has highlighted new zones of pegmatite "float" that are currently being drilled, and if successful will extend the prospect further east. To the west the Ngoualana pegmatite reaches the Baoule River, and geological mapping has highlighted extensions through the river and to the western river bank. Further geological exploration is targeting the western extension of this zone.

As previously announced, the drilling targeting the main Ngoualana prospect was designed to target strike extension and shallow infill zones to provide additional confidence in the geological model. These results continue to confirm the presence of high-grade mineralisation and are consistent with our geological interpretation.

Drill holes KLRC063 through KLRC066 and KLRC083 targeted zones of geologically mapped pegmatite bodies located to the south of Ngoualana. These drill holes confirmed the presence of pegmatite units, however no zones of wide, continuous mineralisation have been intersected in this reconnaissance drilling.

Assay results have been received for an additional sixteen RC drill holes at the Ngoualana 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:

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.

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: