What is the significant progress made by Kodal Minerals for the Nielle gold exploration project?

Summary

  • The mining license application for the Bougouni Lithium Project is progressing well despite the political turbulence in Mali.
  • KOD is well prepared for the reverse circulation (RC) drilling programme in the Nielle gold exploration project.
  • The aircore drilling will be completed in two weeks.

Kodal Minerals PLC (LON: KOD) is the mining stock listed on the London stock exchange. KOD’s shares have generated a return of 635.71% in the last 12 months.

Company Overview

Kodal Minerals PLC is a mining Company focused on Bougouni Lithium Project and gold projects in West Africa. KOD is listed on the FTSE AIM All-Share index. 

Recent Update on Gold Exploration activities 

Nielle Project – The Company had initiated aircore drilling at the Nielle Project in northern Cote d'Ivoire to test for gold mineralization. Moreover, it is expected that the 5,000 metres of aircore drilling would be completed in two weeks. Furthermore, KOD is also prepared for the reverse circulation (RC) drilling programme and expects two weeks of time to complete the activity. With regards to the Dabakala project in central Cote d'Ivoire, the infill sampling programme was completed, and KOD has submitted samples for the analysis.

Bougouni Lithium Project – KOD had completed all the changes in the previous feasibility study and updated the application for the 2019 Mining Code. Furthermore, the Company is closely coordinating with the DNGM (“Direction Nationale de la Géologie et des Mines”) and expects a request for payment of the Mining Licence fee.

Political turbulence in Mali – The Company is closely monitoring the political developments in Mali and make mention of the recent political unrest. Moreover, the country representatives and employees have confirmed that the situation is normal for commercial activities. KOD’s operations in the country are progressing without any interruptions. 

One Year share price performance of Kodal Minerals PLC

(Data Source: REFINITIV)

KOD shares were trading at GBX 0.2575 and were up by close to 7.29% as of 28 May 2021 at 02:23 PM GMT. The 14-day RSI stood at ~56.93, while the 20-day simple moving average was around GBX 0.2438. KOD’s 52-week Low and High were GBX 0.032 and GBX 0.365, respectively. Kodal Minerals PLC had a market capitalization of around £37.95 million.

Business Outlook

The Interim Prime Minister of Mali, Moctar Ouane, had resigned on 14 May 2021 but reappointed immediately. Now, He is going to gather a new ministry aiming to reduce the influence of the military in the Interim Government.  Moreover, Mali's Interim Government confirmed regarding the constitutional referendum scheduled on 31 October 2021, with Government elections to follow in February 2022. KOD expects that this process would not delay the Kodal license application.

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