Gold Exploration Joint Venture Update

RNS Number : 5813J

Kodal Minerals PLC

06 December 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

6 December 2018

Kodal Minerals plc ('Kodal' 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 with Resolute Mining Limited ("Resolute") relating to three gold exploration licences located in central and northern Cote d'Ivoire (the "Licences") (the "Joint Venture").  Kodal currently holds a 100% interest in all three Licences, with Resolute, which is financing and managing the exploration programme, earning into a maximum 75% interest.

Highlights:

Resolute Joint Venture - Nielle prospect Exploration Programme

·    Reverse Circulation drilling totalling 27 drill holes for 3,117m completed.

  Results include:

o 10m at 2.00g/t gold from 26m in drill hole NLRC0004;

o 8m at 4.26g/t gold from 8m in drill hole NLRC0006,

including 2m at 11.63g/t gold from 10m;

o 14m at 1.73g/t gold from 26m in drill hole NLRC0008;

o 26m at 1.95g/t gold from 32m in drill hole NLRC0012,

including 4m at 5.51g/t gold from 42m; and

o 26m at 1.79g/t gold from 108m in drill hole NLRC0018,

including 2m at 6.07g/t gold from 110m.

·    Results confirm wide zones of gold mineralisation, with areas of high-grade gold up to 13.88g/t gold over 2m returned.

·    Gold mineralisation associated with shear zone and quartz veining with alteration in mafic volcanics and mineralisation in altered granitoid intrusion.

·    Exploration is continuing at Nielle with the mineralisation remaining open along strike and at depth.

·    Resolute has requested, and been granted, an extension of term for the earn-in period of the Joint Venture to February 2021.

Bernard Aylward, CEO of Kodal Minerals, said: "The Nielle prospect is located in the north of Cote d'Ivoire approximately 50km north of Randgold's Tongon gold mine.  This is a highly prospective region with several exploration prospects returning significant gold mineralised zones.  These new RC drill results highlight the potential to define a new zone of gold mineralisation within the under-explored Nielle concession and exploration is focussed on defining zones of high-grade mineralisation and extending the current footprint of anomalous gold mineralisation.

"Resolute continues to operate the Joint Venture and has spent approximately US$1.35 million to date.  The Nielle concession has been renewed during the year and Kodal is continuing to progress the M'Bahiakro prospect application. Resolute has indicated that it will continue the exploration programme to complete the minimum US$3 million expenditure required under the Joint Venture agreement.

"Resolute is a leading gold development and production company with a long and successful history in West Africa; credentials which make them an ideal joint venture partner for us.  Through this JV we ensure Kodal shareholders retain a minimum 25% interest in these early stage gold assets - guaranteeing exposure to future exploration and development upside.  This structure also ensures that Kodal has the operational, management and financial flexibility to focus our resources on our aggressive development schedule at our flagship Bougouni Lithium Project in Mali, where we are confident we have the ability to translate rapidly the mineralised potential of this strategically important asset into shareholder value." 

About the Resolute joint venture

Kodal is the 100% owner of the Cote d'Ivoire registered company Corvette SARL and has an active Joint Venture with Resolute whereby Resolute is required to spend a minimum of US$3 million on the three concessions (Tiebissou, Nielle and the application M'Bahiakro) to earn a 75% interest over a four year period to February 2019.  Kodal will remain "free carried" through to completion of a Feasibility Study.

Resolute is currently 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 geological mapping, surface geochemical sampling, auger geochemistry, aircore drilling and this subject campaign of RC drilling.

A total of 28 RC drill holes for 3,135m completed (one failed hole for 18m included) with a total of 1,722 composite samples collected (including QAQC).  Drilling was completed on a 100m spaced section with 50m between drill holes.  A strike length of 1,100m has been targeted by this initial reconnaissance RC drilling programme and further drilling is required to define the mineralisation.  All samples were analysed by Fire Assay with a 0.01g/t gold detection limit.  Drilling intersections based on 2m composite sampling, utilising a 0.50g/t gold lower-cut off are tabled below: 

Hole_ID	Northing	Easting	Hole Depth	m From	m To	Intersection Width	Grade g/t gold
NLRC0001	206447	1135850	126	0	8	8	0.63
				14	16	2	10.05
				84	86	2	2.48
				106	110	4	2.91
				118	124	6	2.59
NLRC0002	206397	1135852	102	0	6	6	3.92
				16	18	2	0.95
				30	32	2	1.57
				60	64	4	1.26
				98	100	2	0.65
NLRC0004	206480	1135954	120	26	36	10	2.00
				82	102	20	0.83
NLRC0005	206520	1135950	140	46	58	12	1.46
incl.				56	58	2	5.12
				68	70	2	1.53
				136	138	2	1.81
NLRC0006	206482	1136042	100	8	16	8	4.26
incl.				10	12	2	11.63
				24	28	4	1.45
NLRC0007	206531	1136052	120	64	70	6	1.14
NLRC0008	206536	1136149	120	26	40	14	1.73
NLRC0009	206577	1136150	144	14	16	2	2.75
				82	84	2	1.92
				132	134	2	2.59
NLRC0011	206579	1136250	126	58	66	8	1.52
NLRC0012	206537	1136350	90	32	58	26	1.95
incl.				42	46	4	5.51
NLRC0013	206575	1136344	126	50	54	4	3.11
incl.				50	52	2	5.23
				76	78	2	4.16
NLRC0014	206589	1136447	102	48	64	16	1.96
				86	96	10	3.62
incl.				88	90	2	13.88
NLRC0015	206639	1136448	120	60	64	4	1.50
				70	80	10	0.59
NLRC0016	206668	1136552	108	80	82	2	1.45
NLRC0017	206716	1136549	120	28	34	6	0.88
				42	52	10	1.03
				60	72	12	1.54
				86	90	4	0.93
				114	116	2	1.13
NLRC0018	206763	1136646	156	108	134	26	1.79
incl.				110	112	2	6.07
				148	150	2	1.13
NLRC0019	206713	1136645	102	52	58	6	1.01
NLRC0022	206440	1135750	122	34	58	24	1.21
incl.				48	50	2	5.28
				74	78	4	1.67
NLRC0023	206443	1135950	100	32	50	18	0.78
incl.				32	36	4	1.45
NLRC0024	206310	1134751	90	62	66	4	2.22
NLRC0026	206450	1134950	101	62	92	30	0.77

Notes:  All drill hole data including assay information, sampling and intersections calculation is based on information supplied by Resolute Mining Limited.  Resolute are the Joint Venture partners for the Nielle concession and are managers of the exploration.  Drill holes are reverse circulation drill holes.  Samples are 2m composite samples with samples analysed at BVML - Abidjan (Bureau Veritas) for fire assay analysis method FA450 with a 0.01g/t gold detection limit.  Intersections are reported using a 0.50g/t gold lower-cut-off, and allowing for a maximum of 4m internal dilution (2 composite samples).

These results confirm wide zones of gold mineralisation, with areas of high-grade gold up to 13.88g/t gold over 2m returned.  The next phase of exploration will focus on continuing to extend the anomalous mineralisation along strike and undertake infill drilling to attempt to define continuity of high-grade mineralisation.

The exploration completed by Resolute has defined a new zone of gold mineralisation that is hosted dominantly in basalt and minor granitoid intrusions and carbonaceous shales.  The mineralisation is strongly associated with medium to strong intensity of pyrite-silica-hematite-ankerite alteration, usually with grey, smoky to milky white quartz veining and gold grade is directly related to the pyrite concentration. 

The weathered profile was confirmed as being shallow with an average depth of 25m vertical.  The profile consists of 1m to 5m of transported ferricrete to lateritic gravels at surface that overlay a residual saprolite (weathered bedrock) profile.  The geology is dominated by massive to weakly foliated, fine grained basalt with minor intrusions of granitoid, felsic dykes, and medium to coarse grained gabbroic or gabbro-diorite dykes also noted.

Expenditure and Extension of Joint Venture

Resolute has spent approximately US$1.35 million on exploration for the Joint Venture with programmes of work consisting of geological mapping, geochemical sampling and drilling completed at the Tiebissou and Nielle concessions.  The exploration programme is focussed on continued drilling and definition at the Nielle concession and, when granted, undertaking early stage reconnaissance exploration at the M'Bahiakro concession.

Kodal has agreed to extend the earn-in period of the Joint Venture as the exploration programme is active and continuing to return encouraging results and there has been delays in finalising concession extension and grant.  The earn-in period has been extended to a final date of 25 February 2021 with the previous date being 25 February 2019.

About Nielle

The Nielle project consists of one licence of 300km² that was granted in 2014 and has 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 (also known as "Wahgnion", owned by Teranga Gold).

**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/Cosima Akerman	Tel: [phone]

About Kodal Minerals

Kodal Minerals' primary focus is on the rapid advancement of its flagship Bougouni Lithium Project in Southern Mali towards production.  The recently completed Maiden JORC Resource Estimate placed the Bougouni Project in the top 15 hard rock lithium projects globally and was calculated using only three of the eight currently recognised prospects demonstrating the significant exploration upside potential remaining across the 450km² project area.  The Mineral Resource estimate for the Ngoualana, Sogola-Baoule and Boumou prospects are tabulated below.  These mineral resources are reported in accordance with the JORC Code:

	Tonnes (Mt)	Li2O% Grade	Contained Li2O  (kt)
Sogola_Baoule	10.4	1.18	122.2
Ngoualana	4.7	1.34	62.8
Boumou	2.2	1.04	22.9
Total	17.3	1.20	207.9

Notes:  Mineral resources are reported using a 0.5% Li2O cut-off.  Figures may not sum due to rounding.  The contained metal is determined by the estimated tonnage and grade.

The Bougouni Project is located in an emerging lithium province that is already attracting the attention of investors and off-take partners interested in securing a long-term supply of lithium.  With the support of its strategic investor and off-take partner Suay Chin International Pte, a Singapore-based lithium and chemical trader, Kodal Minerals is well funded to continue its ambitious development programme at Bougouni.

Further to this, Kodal Minerals is the manager of additional lithium and gold projects that are undergoing low cost exploration programmes in addition to JV funded gold properties in Côte d'Ivoire that offer potentially significant long-term value.

 

END

 

 

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