Gold Anomalous Zones in Nangalasso Trench Samples

RNS Number : 0073K

Kodal Minerals PLC

16 September 2016

 

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

16 September 2016

Kodal Minerals Plc

("Kodal" or the "Company")

Gold Anomalous Zones in Nangalasso Trench Samples

Kodal, the mineral exploration and development company with interests in West Africa, is pleased to announce it has received final results for the trench sampling completed at its Nangalasso project ("Nangalasso" or the "Project"), located in Southern Mali.

Highlights

·    All trenches returned anomalous gold values that confirm the surface gold anomalism previously defined at Nangalasso.

·    Five trenches completed for a total of 264m with a total of 88 composite trench samples, six rock chips samples and QAQC (quality assurance and quality control) samples. A total of 103 samples dispatched to SGS laboratories in Bamako, Mali.

·    Assay results returned a maximum value of 3m at 0.37g/t gold in trench NNTR009.

·    Trench NNTR005 contained zones of anomalism associated with veining and alteration with intersections including 3m at 0.27g/t gold and 6m at 0.12g/t gold.  This trench is located along strike from previous drill intersections and previous trenching that returned significant mineralisation.

·    Trench positions were located to target areas of active artisanal mining and follow-up defined structural trends to improve the targeting of the proposed aircore drilling programme.

·    Rock chip sampling returned anomalous results with a best result of 0.23g/t gold associated with a brecciated quartz vein within altered metasedimentary units.

·    The next phase of exploration at Nangalasso is a programme of field mapping and targeting of the extensions of the defined gold anomalous zones followed by a program of aircore drilling looking to test the depth potential of the gold anomalies beneath the surface affects.

Bernard Aylward, CEO of Kodal Minerals, said: "These results confirm the surface gold anomalism at Nangalasso.  The trench samples have highlighted extensive zones of alteration and structural shearing that is an important target for drill testing at depth.  Previous drilling completed at the project has returned significant gold intersections, so we are confident the surface anomalism is reflecting potential primary gold mineralisation.  The trench sampling has confirmed broad anomalous zones, with up to 45m in width of anomalous values returned. The next steps will be to perform further field geological mapping and sampling to define the zones of alteration and structural complexity prior to undertaking further aircore drilling.

"Follow-up exploration will be planned in conjunction with the commencement of exploration activities on our recently acquired high grade lithium concessions which together form the Bougouni Lithium Project in Southern Mali.  Exploration work to date at Bougouni has indicated the strong potential for high grade lithium mineralisation and it is with this in mind that we are prioritising our efforts here in the short term.  We will however continue to advance our gold projects and anticipate the release of updates following the completion of soil sampling at the Korhogo Gold Project in Cote d'Ivoire and on-going work programmes across our additional gold projects in due course."

Further Information

Nangalasso Project

The 345km² Nangalasso Project consists of two concessions, the Nangalasso and Sotian concessions, over which Kodal holds exclusive access and option to purchase agreements.  The project is located in Southern Mali, approximately 250km from the capital of Bamako and 15km to the west of the world-class Syama Gold mine operated by Resolute Mining Limited (RSG:ASX). 

Previous exploration at Nangalasso has consisted of surface geochemical sampling, auger geochemical drilling, trench sampling and wide-spaced reconnaissance aircore drilling.  A large geochemical gold anomaly has been defined at Nangalasso and results from the reconnaissance drilling include 3m at 7.1g/t gold within a broader zone of 21m at 1.25g/t gold, 3m at 7.84g/t gold, 1m at 7.8g/t gold and broad anomalous zones from trench samples including 7m at 3.84g/t gold.

The trench sampling programme consisted of 5 separate trench locations for a total of 264m.  Trenches were dug to a depth of 2m below surface, and samples were collected on a 3m composite basis.  This sampling is considered a surface geochemical test and provided information regarding the depth of transported cover, information on the geological structure and alteration as well as confirmation of the surface gold anomalism.

The trench sampling programme consisted of:

Trench Number	Length	Maximum Assay returned
NNTR005	60m	0.27g/t gold
NNTR006	60m	0.14g/t gold
NNTR007	60m	0.10g/t gold
NNTR008	60m	0.06g/t gold
NNTR009	24m	0.37g/t gold

This programme has confirmed the widespread surface gold anomalism at Nangalasso.  The identification of the strong alteration, quartz veining and shearing highlight targets of geological interest and the results from the very wide-spaced and reconnaissance drilling completed to date indicates that the surface gold anomalism reflects the sub-surface gold mineralisation.

The Company intends to perform further field geological mapping and sampling to define the zones of alteration and structural complexity prior to undertaking further aircore drilling.

The exploration results and activity reported in this announcement has 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 Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and 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:

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

 

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