Kodal Minerals (LSE:KOD) released the final set of assay results for an updated JORC resource estimate at its flagship Bougouni lithium project yesterday. With the work encountering further high-grade intersections of the critical battery metal, Kodal’s shares had risen 2.7pc to 0.17p as at the time of writing. This gives the business a market cap of £13.4m

Drilling took place at two key prospects within the Bougouni project called Sogola-Baoule and Boumou. Holes at Sogola-Baoule returned further wide mineralisation, with highlight intersections including 31m at 1.3pc lithium dioxide from an 85m drill hole and 27m at 1.1pc lithium dioxide from a 92m drill hole.

Kodal said these figures have provided enough definition to model Sogola-Baoule’s geology and mineralisation with confidence. The firm added that drilling has confirmed the presence of shallow mineralisation with continuity from near surface to more than 150m deep.

Sogola-Baoule is estimated to contain 122.2kt of lithium oxide, making it Bougoni’s largest prospect. Future open-pit mining assessment will target the prospect’s priority central and north-eastern extension as a potential starting zone for a mining operation.

Meanwhile, additional mineralised intersections were located at Boumou, including 11m at 1.3pc lithium dioxide from 114m. Kodal said these further indicate that the prospect remains open to the south-west and north-east, with clear extension and definition targets identified.

However, given that drilling at the prospect has been widely spaced so far, the business said it is likely that it will remain in the inferred category for the time being. Boumou is estimated to contain 22.9kt of lithium oxide.

Kodal CEO Bernard Aylward said Tuesday’s figures round off a drilling programme that has highlighted ‘the excellent continuity and width of the pegmatite mineralisation’ at Sogola-Baoule and Boumou. He added that the firm will now incorporate the results into the geological and mineralisation model that will update its JORC mineral resource at Bougouni.

With a current total mineral resource estimate of 207.9kt contained lithium oxide, Bougoni is among the 15 largest hard rock lithium projects in the world.  However, Kodal believes it shows significant exploration potential that could see this number grow further.

‘Kodal is continuing the fast track development of the Bougouni lithium project and has recently met with both the Mali Minister of Mines and delegation to provide an update on the Project,’ he added. ‘The first step is to complete the update of the JORC Mineral Resource as this will be utilised for the future mine design and scheduling. The company is also finalising the metallurgical testwork and the engineering design of the proposed processing plant.’

Author: Daniel Flynn

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