Kodal Minerals confirms high-grade lithium mineralisation at Mali mine

AIM-listed explorer Kodal Minerals’ initial assay results have confirmed high-grade lithium mineralisation within the pegmatite intersections at its Bougouni project in Mali.

The results showed lithium mineralisation at new prospects, Sogola-Baoule and Boumou, within the pegmatite intersections.

Four of the five drill holes at Sogola-Baoule had significant mineralisation including, 9m at 1.84% lithium oxide from 186m, 11m at 1.65% lithium oxide from 131m, and 8m at 1.53% lithium oxide from 117m.

One of the six drill holes at Boumou had significant mineralisation including, 10m at 1.61% lithium oxide from 50m, and 6m at 1.45% lithium oxide from 106m.

Infill and extension drilling is nearing completion at the Ngouanala prospect to target extensions to the high-grade lithium mineralisation following intersections of up to 1.85% lithium oxide in the first phase of drilling.

The company is extending the drill programme and will move back to the Sogola-Baoule prospect to begin follow-up of these initial results.

Chief executive Bernard Aylward said: "These initial drilling results from the Boumou and Sogola-Baoule prospects are very exciting as they demonstrate the potential to define additional zones of high grade mineralisation which will complement the excellent grades and width of mineralisation previously intersected at the Ngoualana prospect.

“We are now starting to identify the key areas for follow-up and definition drilling that will underpin the future development of the Bougouni lithium project. We are expecting to continue drilling for an extended period.”

Meanwhile, Suay Chin International £4.3m investment in the Kodal announced in March is “progressing well”.

Suay Chin, which will see its holding in Kodal increase to 20%, has completed its due diligence procedures and the companies are now negotiating the final terms of the investment agreements.

The completion of the second stage placement will provide the company with finance to expand the exploration and definition work at Bougouni.

Shares in Kodal Minerals were up 3.19% to 0.307p at 1036 BST.