Kodal Minerals, the mineral exploration and development company, has provided an update on the progress of construction of the Stage 1 Dense Media Separation processing plant and mining at the Ngoualana opencast mine at its flagship Bougouni Lithium Project in Southern Mali.
The Project is fully funded through the US$117.5 million Hainan funding transaction. The Hainan Transaction included a US$100 million investment into Kodal Mining UK Limited, a company owned 51% by the Hainan Group and 49% by Kodal, which is the developer of the Project.
Highlights
- The start of production at Bougouni remains on track for the 1Q25 and remains within the US$65 million capital development budget.
- The shipment carrying remaining steelwork, platework, mechanical equipment, electrical equipment and piping materials arrived at the Abidjan Port in Côte d'Ivoire. These items have been unloaded and are en route to site.
- Following completion of the abnormally long wet season, construction progress is accelerating and structural steel erection work has progressed well with all major buildings taking shape, including the main DMS module, the screening building and the filtration building.
- Electrical generator units are currently being delivered with the first two units having reached the Conakry port in Guinea and will be transported to the site as soon as possible. The remainder of the electrical generator units are currently being shipped to the Abidjan Port.
- Opencast mining activities at the Ngoualana deposit continue to advance ahead of schedule, with several blasts conducted in the hard rock. The main Ngoualana ore body is exposed and a total of 59 500 t of ore grading on average 1.20% Li2O was mined in preparation for commissioning.
- Assay results have been received for the majority of the Boumou prospect diamond drilling programme, which confirms consistent wide, high grade drill intersections including:
- 50.5 m at 1.45% Li2O from 139.5 m and 12.75 m at 1.80% Li2O from 126.8 m in drill hole KLDH029.
- 36.5 m at 1.30% Li2O from 76.35 m in drill hole KLDH038.
- 21 m at 1.51% Li2O from 109.8 m in drill hole KLDH039.
- 51 m at 1.39% Li2O from 110.75 m in drill hole KLDH041.
Bernard Aylward, CEO of Kodal Minerals, remarked: “The acceleration in the Bougouni Lithium Project development is very pleasing. The crushing circuit and the DMS processing plant is rapidly taking shape and the commissioning of the crushing circuit will commence in December 2024 followed by the DMS units.”
“Additionally, the diamond core drilling results received from the Boumou prospect confirm the continuity of the wide, high grade pegmatite veins and highlight the potential to continue to expand the mineral resource base at the Boumou prospect. Further drilling is planned for the prospect to target extensions of the main zone as well as target new zones with off-set positions from interpreted fault structures. The next phase of drilling will also include geotechnical drilling and metallurgical sampling for assessment of the opencast development of the Boumou prospect.”
“As announced on 1 November 2024, a binding memorandum of understanding was signed with the Government of Mali to confirm the transfer of the mining licence to KMUK’s subsidiary mining company that will operate the Bougouni mine and the first half of the US$15 million settlement payment has been made by KMUK to ensure we finalise this transfer shortly. Kodal and Hainan are continuing discussions regarding the off-take agreement and who will have ultimate responsibility for the settlement payment to the Mali Government.”