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

21 May 2018

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

Sogola-Baoule Prospect extended to over 1,000m

High Grade Lithium Mineralisation Intersected in Drilling,

Bougouni Project, Southern Mali

Kodal Minerals plc, the mineral exploration and development company focussed on West Africa, is pleased to provide an exploration update from the Company's Bougouni Lithium Project in Southern Mali ("Bougouni" or the "Project"), including initial drilling results for the definition and extension drilling at the Sogola-Baoule prospect ("Sogola-Baoule") which has now been extended to over 1,000 metres. The results reported are from 15 drill holes which were drilled in March 2018.

To view this announcement with the illustrative maps and diagrams please use the following link: 

http://www.rns-pdf.londonstockexchange.com/rns/7062O_-2018-5-21.pdf 

Highlights

· Consistent wide pegmatite vein with high grade mineralisation intersected beneath shallow cover at Sogola-Baoule. Intersections include:

o 17m at 1.62% Li2O from 44m

o 18m at 1.53% Li2O from 109m

o 10m at 1.17% Li2O from 81m

· Sogola-Baoule strike length extended to over 1,000m and remains open along strike and assays are pending for an additional 39 drill holes

· Further upside potential along strike and at depth where current drill testing has been conducted to a vertical depth of 100m only

· Exploration drilling continuing at Bougouni with two drill rigs on site and drilling to continue at Sogola-Baoule within two weeks

· Bulk sample mining commenced with the first 1,000 tonnes ready to be transported to port as mining continues

Bernard Aylward, CEO of Kodal Minerals, said: "The Sogola-Baoule prospect is developing extremely encouragingly with our drilling intersecting a consistent, wide pegmatite vein on multiple sections. We will be returning to continue the extension and definition drilling here as we look to expand our second main prospect at Bougouni, with the most advanced of our numerous targets being Ngoualana. As at Ngoualana, assay results received thus far from Sogola-Baoule confirm high-grade mineralisation at shallow depth, and we are keenly awaiting the assays for the remaining 39 drill holes.

"We are currently drilling on site with two drill rigs operating on a 24/7 basis as we look to test our priority targets rapidly. Drilling is currently underway at the Boumou Prospect and the Bougouni South Prospect, with drilling expected to recommence at Ngoualana and Sogola-Baoule shortly to continue the definition drilling.

"Our parallel development activities are continuing with the bulk sample mining now underway with the transport of the first 1,000 tonnes to port expected shortly. The metallurgical testwork is continuing at an independent metallurgical laboratory in Australia to provide verification analysis as well as additional testwork ongoing in China."

Further Information

Bougouni Lithium Project - Drilling Update

Sogola-Baoule Prospect

As reported on 1 May 2018, exploration drilling at the Sogola-Baoule prospect has intersected a consistent, wide pegmatite vein up to 26m in width, with multiple sub-parallel veins in a broad zone. The recent RC drilling has extended the prospect to over 1,000m in strike, and remains open to the east. This extension zone is in an area away from the influence of interpreted faults (refer Figure 1 of attachment) and is demonstrating geological predictability that is confirmed in wide-spaced drilling.

The pegmatite vein has been located beneath shallow cover, up to 10m depth, and drilling has targeted a vertical depth to approximately 100m to date (refer Figure 2 of attachment - drill section).

Assay results have been received for 15 RC drill holes that were targeting the infill around existing drilling and for the first section of the new step-out extension zone. The drilling has returned numerous mineralised pegmatite intersections as expected for this prospect and the significant intersections based on a minimum 5m width, and calculated using a 1% Li2O lower cut-off, maximum 2m internal dilution are tabled below:

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.

An additional 39 drill holes are pending assay and will be reported as soon as available. Additional drilling is planned for the Sogola-Baoule prospect where infill drilling is required to provide definition to the pegmatite vein and continue the step out drill testing to determine the size potential of this prospect. Drilling is expected to be completed prior to the commencement of the wet season.

Bougouni Lithium Project - Development Activities Update

The exploration campaign continuing at Bougouni has a range of activities occurring in parallel as the Company attempts to fast track the development of the Bougouni project.

The 5,000t bulk sample is continuing with mining on site and the transport of the first 1,000 tonnes of material to the port of Dakar is expected to commence shortly.

Metallurgical testwork is continuing in Australia where a broad range of testwork is in progress, designed to provide a full analysis of the Bougouni mineralisation. This testwork is independent of the previous work completed at the Chinese laboratory associated with the Shandong Mingrui Lithium Carbonate plant and will provide verification of the previous results. This work is expected to continue over the next month and when results are available they will be reported to the market.

Lithium

The pegmatite veins intersected by drilling at Bougouni are spodumene rich up 20-30% spodumene (visual assessment) 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. Further tests completed by Shandong Ruifu Lithium Co Ltd, one of the largest lithium carbonate producers in China, and reported by the Company on 9 October 2017, produced a high quality, low impurity battery grade lithium carbonate using spodumene concentrate from Bougouni.

Recent lithium concentrate (grade 6%) prices range between US$800/t and US$950/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: