Kodal Minerals granted Bougouni Lithium Project mining licence

Highlights

• Permis d'Exploitation number No2021-0774/PM-RM (mining licence) granted to Kodal Minerals' Mali subsidiary company, Future Minerals SARL, and is valid for an initial 12-year term and renewable in 10-year blocks until all resources mined.
• The mining licence is granted under the 2019 Mining Code and extends over 97.2 km² covering the proposed opencast mining and processing operation at Bougouni.
• As a next step, Kodal has commenced a programme of work to update the feasibility study announced in January 2020 ahead of securing funding for mine development and construction. The programme has a six-month time estimate and will focus on:
  • Metallurgical test work for variability testing and confirmation of process flowsheet, investigating the potential for increased metallurgical recoveries.
  • Completion of geotechnical and hydrogeological reviews for opencast and the tailings dam.
  • Update and finalisation of capital cost estimates and operating costs for the proposed development.
  • Community development and stakeholder engagement activities at Bougouni.
• Strongly rising prices for spodumene concentrate highlight opportunity for project development with recent average pricing levels exceeding US$1250/t 5% lithium oxide (Li₂O) spodumene concentrate, compared with the initial US$680/t for 6% Li₂O spodumene concentrate used in the 2020 feasibility study.

Bernard Aylward, CEO of Kodal Minerals, commented: “The granting of the mining licence for Bougouni has come at a great time for Kodal with the increasing global focus on battery metals and the recognition of potential supply deficits highlighting the value of our fully permitted Bougouni Lithium Project.

“We announced our feasibility study in January 2020 and the programme of work we are currently undertaking will lead to an updated feasibility study that is expected to support a decision to mine. Our initial study highlighted very robust fundamentals, but the world of battery metals has shifted significantly in this time, and during 2021 alone, we have seen lithium prices and demand surge. The timing of Kodal's permitting and potential development timeline highlight how well positioned our Bougouni project is to capitalise on the widely forecast lithium hydroxide and lithium carbonate shortages which are expected by 2023.

“We are looking forward to the construction phase of this project and we are confident of achieving support to finance the capital required for our target of development of the first lithium mine in Mali. I look forward to providing further updates on our progress in due course.”

Read the article online at: https://www.globalminingreview.com/exploration-development/08112021/kodal-minerals-granted-bougouni-lithium-project-mining-licence/