Updated JORC Mineral Resource Estimate

RNS Number : 3553R

Kodal Minerals PLC

28 February 2019

 

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").  With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

Kodal Minerals Plc / Index: AIM / Epic: KOD / Sector: Mining

28 February 2019

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

Updated JORC Mineral Resource Estimate Increases 23% at Bougouni Lithium Project, Mali

Over 55% of Resource in the Indicated Category

Kodal Minerals, the mineral exploration and development company focused on the Bougouni Lithium Project in Southern Mali ("Bougouni"), is pleased to announce an updated JORC Mineral Resource estimate for the Company's 450km² Bougouni Project. This update incorporates the results of all definition and extension drilling completed in the October to December 2018 drilling campaign and, importantly, has allowed the Company to classify a major portion of the Minerals Resource estimate as Indicated Resource.  The drilling focused solely on the three prospects with existing resources, and in all cases has increased the Mineral Resource demonstrating the expansion potential at each prospect.

Highlights

·   JORC Mineral Resource of 21.3Mt at 1.11% Li₂O, with 11.6Mt at 1.13% Li₂O in the Indicated category and 9.7Mt at 1.08% Li₂O in the Inferred category

·   The updated Mineral Resource is made up of Kodal's three most advanced prospects:

o Sogola-Baoule: 12.2Mt at 1.1% Li₂O (18% increase) - 69% categorised as Indicated;

o Ngoualana:  5.1Mt at 1.2% Li₂O (9% increase) - 61% categorised as Indicated;

o Boumou:  4Mt at 1.02% Li₂O (81% increase) - remains Inferred

(Mineral Resource reported using a 0.5% Li₂O lower cut-off, no top cut-off and is based on the wireframe interpretation of mineralised pegmatites.  Further details of the updated Mineral Resource are set out in the table below)

·   JORC classification of Indicated category confirms confidence in the interpretation, continuity and understanding controls on the lithium mineralisation

·   The updated Mineral Resource represents a 23% increase in the previously reported Mineral Resource of 17.3Mt and includes 55% in the Indicated category.

·   Mineral Resources remain open along strike with potential to expand with further drilling, and the Boumou prospect requires definition drilling to improve resource classification

·   Mine development study advancing with ESIA (Environmental & Social Impact Assessment)  nearing completion and engineering consultants commissioned to advance mine planning

Bernard Aylward, CEO of Kodal Minerals, said: "The significance of this updated and increased Mineral Resource estimate lies in the fact that it enabled us to classify a large portion of the Mineral Resource estimate as an Indicated Resource - this is fundamental for our 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.  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.

These updated Mineral Resource models will now be used to complete our mine development studies. The first step is underway starting with a new open pit optimisation review that will lead into the planning of the processing plant and production schedule.

"The development programme at Bougouni is progressing with the ESIA well advanced and engineering review studies commissioned.  The Company has continued to meet with Mali Government officials to keep them informed of our progress and our intentions to move to lodge our ESIA when complete, followed by our mining licence application when the study work is finalised."

Further Information

Mineral Resource Estimate

This updated Mineral Resource estimate has been completed by independent geological consultants CSA Global.  Kodal supplied a geological database and verified the geological interpretation that was used to define the lithium mineralised pegmatite bodies.

Resource updates were completed for the Sogola-Baoule, Ngoualana and Boumou prospects following additional drilling and a site visit completed by the Independent Resource geologist.  The updated mineral resource has enabled classification into Indicated and Inferred categories as tabled below.  The resource is reported using a lower cut-off grade of 0.5% Li₂O; no upper cut-off has been used.  This application of a lower cut-off applies a potential economic constraint to the resource estimate.

The overall resource grade reported in this update of 1.11% Li₂O for the project is slightly reduced from the maiden resource estimate (as announced on 5 September 2018) largely due to the re-modelling of Ngoualana, with the grade of the Sogola-Baoule and Boumou deposits remaining in line with the maiden resource estimate.  The infill drilling at Ngoualana partly targeted definition and extension of a zone of high-grade mineralisation (>2% Li₂O).  The drilling confirmed the thickness of the pegmatite, however, it intersected lower grade material (KLDH0015 14.5m at 1.74% Li₂O refer RNS 25 January 2019) that has had the effect of reducing the extent of the >2% Li₂O and hence overall reduced the grade of the Ngoualana prospect.  It is important to note that the Ngoualana Indicated Resource grade is reported at 1.25% Li₂O.  Full details of the resource estimate parameters are available in the JORC Table 1 on the Company's website.

The geological interpretation has demonstrated strong continuity of mineralisation in the major pegmatite veins as well as the smaller subsidiary veins that have been identified in each prospect.  The geological model developed for the maiden resource estimate has proven to be very reliable and demonstrated the high level of confidence in the Mineral Resource estimate.

The Mineral Resource estimate for the Sogola-Baoule, Ngoualana and Boumou prospects are tabulated below.  These mineral resources are reported in accordance with the JORC Code¹:

Prospect	Indicated			Inferred			Total
	Tonnes (Mt)	Li2O% Grade	Contained Li2O  (kt)	Tonnes (Mt)	Li2O% Grade	Contained Li2O  (kt)	Tonnes (Mt)	Li2O% Grade	Contained Li2O  (kt)
Sogola_Baoule	8.4	1.09	91.9	3.8	1.13	42.8	12.2	1.10	134.8
Ngoualana	3.1	1.25	39.2	2.0	1.12	22.1	5.1	1.20	61.3
Boumou				4.0	1.02	40.4	4.0	1.02	40.4
TOTAL	11.6	1.13	131.2	9.7	1.08	105.3	21.3	1.11	236.5

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 JORC code Table 1 with details of the resource estimate parameters is available to view on the Company's website at www.kodalminerals.com 

Qualified Person's Statement

The Mineral Resource estimates have been prepared by Dr Matthew Cobb who is a Member of the Australian Institute of Geoscientists.  Dr Cobb is a Principal Resource Consultant with CSA Global and 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 Qualified Person as defined in the AIM Note for Mining and Oil & Gas Companies dated June 2009. Dr Cobb consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

The exploration results and activity reported in this announcement have 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 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	Tel: [phone]
St Brides Partners Ltd, Financial PR Susie Geliher/Lottie Wadham	Tel: [phone]

About Kodal Minerals

Kodal Minerals' primary focus is on the rapid advancement towards production of its flagship Bougouni Lithium Project in Southern Mali.  The JORC Resource Estimate places 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:

Prospect	Indicated			Inferred			Total
	Tonnes (Mt)	Li2O% Grade	Contained Li2O  (kt)	Tonnes (Mt)	Li2O% Grade	Contained Li2O  (kt)	Tonnes (Mt)	Li2O% Grade	Contained Li2O  (kt)
Sogola_Baoule	8.4	1.09	91.9	3.8	1.13	42.8	12.2	1.10	134.8
Ngoualana	3.1	1.25	39.2	2.0	1.12	22.1	5.1	1.20	61.3
Boumou				4.0	1.02	40.4	4.0	1.02	40.4
TOTAL	11.6	1.13	131.2	9.7	1.08	105.3	21.3	1.11	236.5

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 and recently acquired 200km² Bougouni West project are 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 Cote d'Ivoire that offer potentially significant long-term value.

Glossary of Technical Terms

"Inferred" or "Inferred Resource"	that part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence.  It is inferred from geological evidence and assumed but not verified geological and/or grade continuity.  It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability
"Indicated" or "Indicated Resource"	that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence.  It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.  The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed
"JORC"	The Australasian Joint Ore Reserves Committee Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2012 (the "JORC Code" or "the Code").  The Code sets out minimum standards, recommendations and guidelines for Public Reporting in Australasia of Exploration Results, Mineral Resources and Ore Reserves
"Measured Resource"	that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence.  It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.  The locations are spaced closely enough to confirm geological and grade continuity
"Mineral Resource"	a concentration or occurrence of material of intrinsic economic interest in or on the Earth's crust in such form, quality and quantity that there are reasonable prospects for eventual economic extraction.  The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories when reporting under JORC
"Mt"	million tonnes
"Kt"	Thousand tonnes
"Reserve"	the economically mineable part of a Measured and/or Indicated Mineral Resource
"t"	tonne (= 1 million grams)
"cut off"	the lowest grade value that is included in a resource statement.  It must comply with JORC requirement 19: "reasonable prospects for eventual economic extraction" the lowest grade, or quality, of mineralised material that qualifies as economically mineable and available in a given deposit.  It may be defined on the basis of economic evaluation, or on physical or chemical attributes that define an acceptable product specification

 

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