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

18 January 2018

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

Infill and Extension Drilling Confirms High-Grade Lithium Mineralisation

Bougouni Project, Southern Mali

Kodal Minerals plc, the mineral exploration and development company focussed on West Africa, is pleased to provide this update on drilling progress at the Company's Bougouni Lithium Project in Southern Mali ("Bougouni" or the "Project"). These initial results are from drilling completed as part of the major exploration campaign consisting of drilling, metallurgical testing and bulk sampling that the Company announced in October 2017.

Highlights

· Assay results have been received for the first 11 Reverse Circulation (RC) drill holes completed at the Ngoualana (7 drill holes) and Sogola-Baoule (4 drill holes) prospects.

· Ngoualana drilling focussed on infill and extension drilling with the prospect remaining open along strike and at depth.

· Ngoualana prospect new intersections include:

o 31m at 1.61% Li2O from 65m;

o 20m at 1.69% Li2O from 71m; and

o 18m at 1.66% Li2O from 66m.

· Drilling at Ngoualana has targeted shallow depths and confirms wide, consistent pegmatite hosted mineralisation that confirms the existing geological model. A total of 32 RC drill holes for 4,023m have been completed in this phase of exploration drilling.

· Drilling at the Sogola-Baoule prospect, 10 RC drill holes for 1,263m, targeted the southwestern extension of the pegmatite bodies and confirms multiple zones of lithium bearing pegmatite including:

o 12m at 1.69% Li2O from 110m; and

o 10m at 1.56% Li2O from 128m;

Bernard Aylward, CEO of Kodal Minerals, said: "These drilling results are very pleasing for the Ngoualana prospect where our current drilling programme is defining strike extensions to the mineralised pegmatite body, and our infill drilling is confirming continuity and wide zones of high-grade mineralisation. At the Sogola-Baoule prospect we are intersecting multiple zones of pegmatite intrusions and our drilling is continuing to extend this prospect along strike as well. This is very encouraging as we are seeking to build up the number of mineralised zones as we continue to look to develop a mining hub sourcing from multiple veins.

"Our exploration campaign is ongoing with drilling expected to recommence shortly following a Christmas break and the awarding of the bulk sampling contract to be finalised and activities shortly to commence. Additional assay for the drilling completed in December 2017 will be reported to the market as soon as they become available."

Further Information

Bougouni Lithium Project -Drilling Update

The exploration drilling campaign re-commenced at Bougouni in October 2017 with a total of 36 RC drill holes for 5,286m completed prior to the Christmas break. The drilling targeted two key prospects initially - the Ngoualana prospect and the Sogola-Baoule prospect. Drilling has been slower than anticipated as a result of some difficult ground conditions due to higher water table levels following the wet season, and increased travel time to some prospects due to high river levels. The drilling conditions are expected to improve in the next phase of drilling.

At the Ngoualana prospect a total of 32 drill holes for 4,023m were completed with drilling focussed on shallow infill holes, strike extension holes and reconnaissance targeting of off-set structures and parallel pegmatite intrusions. Review of the drill holes indicates that the main pegmatite veins have been successfully extended along strike, and that the shallow infill drill holes are returning wide zones of pegmatite consistent with previous drilling. This information is providing Kodal with additional confidence in the geological model and improves the Company's targeting for ongoing drilling.

At the Sogola-Baoule prospect an additional 10 RC drill holes for 1,263m have been completed targeting the southwestern extension of the pegmatite bodies. Drilling has successfully delineated extensions to the pegmatite bodies with the prospect remaining open along strike and at depth. The geological interpretation of the Sogola-Baoule prospect indicates multiple pegmatite veins in close proximity with good continuity and width. This prospect is being assessed for a potential bulk tonnage mining scenario, however the Company's initial interpretation is focussed on the delineation of individual mineralised veins.

Initial assay results have been received for seven drill holes at the Ngoualana prospect and four drill holes 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:

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: