Gold Exploration Joint Venture Update

RNS Number : 3275F

Kodal Minerals PLC

20 February 2018

 

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 February 2018

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

Gold Exploration Joint Venture Update

Kodal Minerals plc, the mineral exploration and development company focussed on West Africa, is pleased to provide an update on the Company's joint venture gold exploration projects in Cote d'Ivoire.  Kodal has two joint ventures in Côte d'Ivoire, one with Resolute Mining Limited ("Resolute") for three licences and a second with Newcrest Mining Limited ("Newcrest") for one licence.

Highlights:

Resolute joint venture - Nielle Exploration Programme

·    Auger drilling defines new gold anomaly in the Nielle licence

A total of 542 auger holes completed with samples collected at base of transported material (max value 1.66g/t gold) and bottom of hole (max value 8.28g/t gold)

·    Reconnaissance 7,000m aircore drilling programme completed

Initial 4 metre composite sample results have been received from first 4 sections drilled.  Results include:

o 16m at 1.14g/t gold from surface;

o 4m at 3.40g/t gold from 12m;

o 8m at 1.53g/t gold from 16m;

o 12m at 2.39g/t gold from surface, including 4m at 6.62g/t gold from surface; and

o 4m at 3.91g/t gold from 4m.

·    Gold mineralisation associated with shear zone and quartz veining with alteration in mafic volcanics

·    Further results are pending and mineralisation remains open in all directions

Newcrest joint venture - Dabakala licence

·    315 auger drilling samples collected and analysed for low level gold mineralisation (max 309 ppb gold) and multi-element association (31 additional elements analysed)

·    Newcrest also completed updated geological interpretation and interpretation of geophysical data for regional structural framework

·    Newcrest has notified Kodal of its intention to withdraw from the Dabakala joint venture

·    Kodal retains 100% ownership of the licence

Bernard Aylward, CEO of Kodal Minerals, said: "The gold mineralised intersections reported by Resolute at the joint venture project over the Nielle licence in Côte d'Ivoire are very encouraging for this reconnaissance phase of exploration.  The Nielle licence is located approximately 50km to the north of Randgold Resources Limited's Tongon gold mine and this is some of the first exploration completed in this highly prospective region.

"Further results are pending from the reconnaissance programme, however Resolute has confirmed that the initial results from the drilling combined with the geochemical sampling indicate a programme of reverse circulation drilling is required to test this new gold mineralised zone.

"Following Newcrest's withdrawal from the joint venture, the Dabakala licence has been returned to Kodal, giving us 100% ownership.  This licence is in a highly prospective region in Côte d'Ivoire and Kodal is currently reviewing opportunities for this landholding."

Resolute joint venture

Resolute is actively exploring the Nielle licence, located in the north of Côte d'Ivoire approximately 50km to the north of the Tongon Gold mine operated by Randgold Resources Limited ("Randgold").  Exploration activity completed by Resolute consists of surface geochemical sampling, auger geochemistry and a recently completed 7,000m aircore drilling campaign completed as a reconnaissance test of the surface geochemical anomalies.

Results have been received for the initial aircore drill sections and have provided encouragement for the potential for a new gold mineralised zone to be delineated.  The drilling has tested the auger anomaly on a reconnaissance spacing of over 200m between drill sections and 40m between drill holes.  The prospect remains open along strike to the north and south and further results are pending.  Initial drill results include:

·    16m at 1.14g/t gold from surface;

·    4m at 3.40g/t gold from 12m;

·    8m at 1.53g/t gold from 16m;

·    12m at 2.39g/t gold from surface, including 4m at 6.62g/t gold from surface;

·    4m at 1.76g/t gold from 20m.

Final results are pending for the reconnaissance aircore drilling, however the combination of the auger geochemical anomaly and these initial results indicated further exploration work is warranted.  A programme of reverse circulation drilling is proposed to further test this area of new gold anomalism.

The Nielle project consists of one licence of 400km² that was granted in 2014 and has recently been renewed for a further 3-year period.  Resolute is earning into the licence via the joint venture agreement, and at this stage the licence is still 100% owned by Kodal.  The area is underexplored, however it is well located in the Tongon-Banfora greenstone belt that is host to multi-million ounce gold resources at the Tongon Gold mine (operated by Randgold) and the Banfora gold deposit (owned by Teranga Gold).

Dabakala joint venture

The Dabakala licence is located in central Cote d'Ivoire and is 100% owned by Kodal subsidiary company International Goldfields CIV SARL.  The licence was granted in 2014 and renewed in 2017.

Newcrest has been the joint venture partner since September 2015.  In this time Newcrest has completed a regional stream sediment, rock chip and laterite sampling programme and 315 auger geochemical samples.

Reconnaissance geochemical sampling completed on a regional scale by earlier explorers outlined extensive surface gold anomalism associated with a major shear structure in the east of the licence.  The anomalies in the east of the licence are regionally extensive and require infill geochemistry to define targets for reconnaissance drilling.  The Newcrest work has exclusively focused on the west of the licence.  The Newcrest auger sampling has identified a narrow anomaly associated with a major regional shear.  Further work is required to assess this zone, however Kodal believes that the main focus going forward should be on the eastern anomaly.

Kodal is currently reviewing opportunities for this landholding including undertaking additional surface geochemical sampling directly or entering into further Joint Venture partnerships.  Kodal notes that there is increasing interest in the exploration for gold mineralisation in Cote d'Ivoire and we anticipate interest in this prospective ground from other parties.

**ENDS**

For further information, please visit www.kodalminerals.com or contact the following:

Kodal Minerals plc Bernard Aylward, CEO	Tel: [phone]
Allenby Capital Limited, AIM Nominated Adviser Jeremy Porter/Nick Harriss	Tel: [phone]
SP Angel Corporate Finance LLP, Financial Adviser & Broker John Mackay	Tel: [phone]
St Brides Partners Ltd, Financial PR Susie Geliher/Megan Dennison	Tel: [phone]

 

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