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Kodal Minerals releases Bougouni Lithium project update

Published by , Editorial Assistant
Global Mining Review,


Kodal Minerals, the mineral exploration and development company focused on lithium and gold assets in West Africa, is pleased to provide an update on the potential for initial rapid development of its Bougouni Lithium project in Southern Mali (Bougouni). 

The company continues to review opportunities to accelerate the development of the project through a faster and lower capital cost dense media separation (DMS) processing plant option, that will provide an opportunity for the company to take advantage of the near-term high price environment in the lithium market.

Highlights of the DMS option:

  • Capital development cost for the DMS plant and all associated infrastructure and commencement of mining is estimated at US$65 million, generating an estimated NPV7% of approximately US$557 million (US$420 million post-tax) and, based on full equity funding, a short payback of 2 months from commencement of operations.
  • The DMS option is based on:
    • Processing material from the Ngoualana deposit feeding 1 million tpy of lithium ore to a DMS processing plant.
    • Utilising a conventional circuit to maximise spodumene recovery of over 130 000 tpy of spodumene concentrate.
    • An initial 4-year mine life.
  • DMS operation revenue forecast to exceed US$1.05 billion in less than 4 years, based on prevailing broker consensus pricing averaging US$2080/t.
  • The DMS operation targets production of a 5.5% Li2O spodumene concentrate product which is consistent with other producers currently active in the market.
  • Future expansion of the project is expected to continue with the construction and commissioning of a down-stream flotation plant, expected to be supported by utilising the DMS plant cash flows in order to exploit the resources at Sogola-Baoulé and Boumou, as well as longer term exploration prospects.

Bernard Aylward, CEO of Kodal Minerals, remarked:

“The DMS plant scenario provides Kodal with a fast-track option towards achieving our goal of becoming the first operational lithium mine in Mali. At much reduced capital and operating costs, and an expected construction timeline of around 12 months, the DMS development option provides Kodal with a near-term solution to take full advantage of the continuing buoyant lithium market.

“The DMS option has a current mine life of nearly 4 years. This is based on mining all resources at the Ngoualana pit, which boasts the highest grade ore of all deposits, with potential to supply additional DMS ore feed from adjacent exploration prospects where previous drilling has intersected with high grade pegmatite veins at Bougouni South, Marigo and Orchard. Importantly, the existing upside from the Sogola-Baoulé and Boumou deposits would be retained and processed in a future flotation plant, which can be funded from the DMS operation project cash flows.

“This update utilises prevailing broker consensus pricing for the sale price of spodumene concentrate which has recently traded at spot prices above US$5000/t. The life of mine average concentrate price for the fast track DMS proposal is US$2080/t.

“The lithium market continues to be very strong and our Bougouni Project continues to attract strong interest. The DMS development option has attracted interest from the wider market, and Kodal is progressing discussions with market operators and potential financing partners.”

Read the article online at: https://www.globalminingreview.com/mining/29092022/kodal-minerals-releases-bougouni-lithium-project-update/

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This article has been tagged under the following:

African mining news Lithium mining news