Currently viewing Global edition

Kodal ups Bougouni mineral resource by 23%

Kodal Minerals (AIM:KOD) has lived up to its timeline and released an updated JORC mineral resource estimate at its Bougouni lithium project in Mali.
Kodal ups Bougouni mineral resource by 23% Kodal ups Bougouni mineral resource by 23% Kodal ups Bougouni mineral resource by 23% Kodal ups Bougouni mineral resource by 23% Kodal ups Bougouni mineral resource by 23%

Kodal has released an updated mineral resource at its Bougouni project in Mali

Staff reporter

Bougouni's new mineral resource estimate is an increase of 23% to 21.3 million tonnes at 1.11% Li2O, with 55% in the indicated category and the rest inferred. 

The updated resource estimate included the Sogola-Baoule, Ngoualana and Boumou prospects.

Sogola-Baoule's resource increased 18% to 12.2Mt at 1.1% Li2O with 69% in the indicated category, while the Ngoualana prospect's resource increased 9% to 5.1Mt at 1.2% Li2O, with 61% in the indicated category.

The Boumou prospect's resource remained in the inferred category, but increased 81% to 4Mt at 1.02% Li2O.

Kodal said the mineral resources remained open along strike with potential to expand with further drilling, and further definition drilling was required at Boumou to improve the resource classification.

CEO Bernard Aylward said a key thing about the updated resource estimate was that Kodal had been able to classify a large portion as an indicated resource, which was "fundamental for the ongoing mine development study". 

"The drilling recently completed was focused on defining and extending the known resources utilising the important target areas contained within the previously optimised open pit mining shells," he said.  

"The initial review of this updated mineral resource highlights that the increases in the resource are contained within the previous optimised shells, that the interpretation now has been strengthened and that the areas of very wide pegmatite hosted mineralisation have been clearly defined." 

Kodal is advancing Bougouni's mine development study, with the environmental and social impact assessment (ESIA) almost complete and it has commissioned engineering consultants to advance the mine planning.

Aylward said the first step of the mine development studies had started with a new openpit optimisation review that would lead into the planning of the processing plant and production schedule.

He said Kodal was continuing meetings with Mali officials to keep them informed of the project's progress and the intentions to lodge the ESIA when complete, followed by the mining licence application on the completion of the study work.

Kodal shares dropped 5.13% Thursday after the news to 0.18p (US0.24c), although this is 28.6% higher than the start of the year.