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Some of the week's mining-related stories in snapshot
Company
LON:KOD
Kodal Minerals PLC is a mining development and exploration company active in West Africa. The company's flagship project is the advanced Bougouni Lithium Project in southern Mali. Kodal also has a range of gold exploration projects in Mali and Cote d'Ivoire.
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Some of the week's mining-related stories in snapshot
The company has raised £3.5mln that it will use to explore targets that it said have been identified for “having potential to host large scale gold mineralisation”
Proceeds will help fund the continued development of its flagship Bougouni lithium project in Mali
The funding will be used for exploration work and to define resources at the company's gold projects in Mali and the Ivory Coast
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Alba Mineral Resources (LON:ALBA) – Licence extension Altus Strategies* (LON:ALS) – New gold discovery at Diba NW Chaarat Gold* (LON:CGH) - BUY – 62p (from 65p) – Earnings Update Kodal Minerals* (LON:KOD) – Geochemical sampling at Dabakala
“The consistency of the gold anomalism, the geological setting and the presence of artisanal workings highlight the potential of this project," said chief executive Bernard Aylward.
Kodal has extensive experience in West Africa, and is also developing the Bougouni lithium project
The company has undertaken further field reconnaissance at Fatou and planning of the maiden drilling programme is to commence as soon as possible once the funding agreement is finalised
The project forms a contiguous landholding exceeding 300 square kilometres and has been acquired through agreements with local vendors.
Kodal boasts a significant lithium resouce at Bougouni
The mineral explorer also said that progress on its mining licence application for the lithium project has recommenced with all documents updated for the new ministry and interim constitution of the Mali Transition Government
The new government comes at a time when the company is advancing the Bougouni lithium project in the country towards its next stage of development
Bringing in a major Chinese partner has had a salutary effect on the company's share price
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Sinohydro has a strong track record of developing and working on engineering projects in Mali and elsewhere in Africa
Kodal has significant lithium exploration acreage in Mali
“This year has again marked major developments for Kodal and our focus on the flagship Bougouni Lithium project"
Kodal also noted that its gold assets in Mali and Cote d'Ivoire have attracted interest from investors and other exploration and development companies
Kodal's bulk sample was sent to a major lithium producing plant in China
The extensions secure the projects for another three years, to April 2023
Kodal has several years of experience operating in Mali
The next meeting is a session convened by the Ministry of Mines and representatives from various ministries
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"The two companies are operating in the same region of Mali and intend to develop similar lithium mining operations. It makes strong sense for the companies to work together where possible to improve the operations and financial return on t
The robust IRR looks especially attractive in the context of current lithium prices
The mineral exploration firm also said it has completed underlying engineering and appraisal work to support its application
All licences of the Bougouni Lithium project are now registered in Kodal Minerals' subsidiary company names covering a total area of around 350km2.
The company is now working on mining assessment and technical reports for a full licence application by the end of 2019.
The new licences cover lithium mineralisation and exploration prospects and will secure the project area for another seven years
Kodal was left with a funding shortfall after SVS fell into administration in August and defaulted on its commitment to pay for 250mln shares
The AIM-listed mineral explorer said its application was progressing as planned, with approval expected “within the legislated timeframe”
Work on logistics, metallurgy and open-pit optimisation continues to move the Mali lithium mine development forwards.
Bougouni contains 21mln tonnes of ore grading 1.11% lithium oxide
Bernard Aylward, chief executive of the mineral explorer, said the submission was a “significant milestone” and the “first critical step” in obtaining a mining licence
Using a Dense Media Separation (DMS) plant, ore from Ngoualana produced a primary concentrate with grades of 6.0% Li2O at recoveries of up to 70%.
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Luke Bryan joined Kodal Minerals in 2013 as chief executive, overseeing the company’s initial public offering later that year
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"This is early stage exploration and we are waiting for assay results, however we are encouraged by the initial pegmatite intersections and we expect to continue drilling when results are received," said Bernard Aylward.
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Kodal continues with its rapid progress at Bougouni
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The minerals explorer the total mineral resource now stood at 21.3mln tonnes (Mt), with 11.6Mt in the indicated category
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The drill results will be incorporated into the new JORC resource
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At the Ngoualana prospect, three diamond core holes were completed targeting the eastern extension of the mineralisation
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"Our work on site has resulted in the identification of three initial priority targets, Sogola-Baoule, Ngoualana and Boumou, and a further five earlier stage exploration prospects; however, we believe that this is just the beginning for Bou
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Gold mineralisation associated with the shear zone and quartz veining has been identified, with alteration in mafic volcanics and mineralisation in altered granitoid intrusion
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Plenty of newsflow is expected, as drilling on the Mali portfolio is continues