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

20 June 2017

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

Wide, high-grade lithium mineralisation continues 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 further wide, high-grade lithium mineralised drill intersections from the 'Ngoualana Prospect', located at the Company's Bougouni lithium project in Southern Mali ("Bougouni" or the "Bougouni Project"). 

To view a version of the announcement with maps and pictures, please click on the following link: 

http://www.rns-pdf.londonstockexchange.com/rns/5343I_-2017-6-19.pdf

Highlights

· Assay results continue to confirm consistent wide, high-grade lithium mineralisation at the Ngoualana prospect with intersections including:

o 28m at 1.96% Li2O from 178m;

o 24m at 1.73% Li2O from 37m;

o 17m at 1.58% Li2O from 187m; and

o 16m at 1.82% Li2O from 156m

· Ngoualana drilling completed - total of 33 reverse circulation ("RC") drill holes for 4,802m and five diamond drill holes for 362.1m completed

· Assay results remain pending for a further 10 RC drill holes that have been submitted to the laboratory

· Diamond drill core is being geologically logged and prepared for sampling and all the diamond core will be geotechnically logged and reviewed for detailed metallurgical test work

· Sogola-Baoule prospect (Bougouni Project) follow-up drilling completed with a further nine RC drill holes for 1,463m completed. All assay results are pending

· Major drilling campaign completed at the Bougouni Project with four prospects tested for a total of 57 RC drill holes for 8,912m and five diamond drill holes for 362.1m completed

Bernard Aylward, CEO of Kodal Minerals, said: "These assay results continue to confirm the high-grade and consistent mineralisation of the Ngoualana pegmatite that currently remains open along strike and at depth. We have completed a programme of diamond drilling to provide the best quality geological information and we are extremely pleased to report that the diamond core confirms the width of the pegmatite intersected in the RC drilling and highlights the consistency of the vein. Furthermore, the multiple parallel and subsidiary veins are also demonstrating continuity of strike that will add to the potential for mining.

"In addition to this major drilling campaign, we have been undertaking metallurgical testing and a review of the logistics for mining in the Bougouni region. Our exploration is at an early stage, however we are ensuring that we are maintaining a very fast pace to move rapidly through the mining development phases.

"Kodal is well funded to maintain this aggressive exploration and development phase of the project and we are delighted with the support received from our major shareholder Suay Chin International Pte Ltd assisting in this focus on the Bougouni Lithium project."

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. The exploration activities continue to enhance the project, with numerous exploration targets developed and drill results confirming high-grade mineralisation.

Figure 1: Bougouni Lithium Project Location and Active Exploration Prospects

Ngoualana Prospect

Kodal completed the first phase of RC drilling at Bougouni in December 2016 with a best result returned for the Ngoualana prospect of 28m at 1.85% Li2O from 72m as announced on 8 February 2017.

This second phase of drill testing at the Ngoulanan prospect has now been completed with a total of 33 RC drill holes for 4,802m and five diamond drill holes for 362.1m completed. The prospect has now been confirmed over a strike length of 650m, and remains open along strike. Field investigation has demonstrated the presence of subcrop, or low-quality rock material, that represents the extension of the pegmatite vein beyond the current drilling. The consistent lithium mineralisation returned in assay results confirms the geological logging where a high percentage of spodumene was noted in the drill chips, with a relatively low amount of mica noted. The prospect remains open at depth, with drilling having tested to greater than 225 vertical metres.

The Ngoualana prospect consists of one wide main vein that is continuous throughout the prospect, and multiple parallel and subsidiary pegmatite veins. Drilling is continuing to intersect pegmatite veins that have no outcropping evidence and the potential exists for additional veins to be delineated. The pegmatite veins are high-grade, with assays up to 3.12% Li2O returned, and review of the assay results indicates consistent mineralisation throughout the pegmatite veins. The coarse spodumene minerals within the pegmatite observed in surface outcrop is confirmed in drilling, and several intersections appear to have spodumene content in excess of 30%. The pegmatite veins are hosted in a sequence of metasedimentary rocks with minor granodiorite intrusions and quartz veins identified.

To date, assay results have been returned for a total of 23 RC drill holes, with all holes returning mineralisation (except KLRC038 that was terminated early due to drilling difficulty). The remaining 10 RC drill holes are in the laboratory pending final analysis.

The diamond drill core is being geologically, structurally and geotechnically logged prior to sampling. It is anticipated that a portion of the drill core will be sent for more detailed and advanced metallurgical testing to confirm the initial test work.

Figure 2: Diamond drill core showing abundant Pegmatite veining:

Figure 3: Field inspection of RC drill chips

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 and the duplicate sampling reviewed to confirm reliability of information.

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.

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. Drill hole KLRC025 terminated early due to drift of drill hole and has not tested main zone.

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: