Kodal Minerals Advances Bougouni Lithium Project Toward Early 2025 Production

Highlights:

• On Track for Production: Kodal Minerals confirms Bougouni Lithium Project remains on schedule for first production in early 2025 within its $65 million capital budget.
• Construction and Mining Progress: Key infrastructure developments and open-pit mining at the Ngoualana deposit are ahead of schedule, with significant ore already mined.
• Positive Drilling Results: Assay results from the Boumou prospect show consistent, high-grade intersections, indicating potential for resource expansion.

Kodal Minerals PLC (LSE:KOD) has reaffirmed its commitment to delivering first production from the Bougouni lithium mine in Mali by early 2025, remaining within its $65 million capital development budget. Despite challenges posed by seasonal conditions, the company has reported significant progress in both construction and mining activities.

Construction Milestones and Infrastructure Development

Following the wet season, construction activities have ramped up, with substantial progress noted across all major infrastructure components of the Bougouni project. Key structures, including the Dense Media Separation (DMS) module, the screening building, and the filtration building, are rapidly taking shape. Kodal's focus on expediting the build phase highlights its commitment to meeting the early 2025 production timeline.

Chief executive Bernard Aylward expressed optimism about the project's advancement: "The acceleration in the Bougouni Lithium Project development is very pleasing. The crushing circuit and the DMS processing plant are rapidly taking shape, and commissioning of the crushing circuit is set to begin in December 2024, followed by the DMS units."

Early Mining Activities Surpass Expectations

Mining operations at the Ngoualana deposit have outpaced initial schedules, with several successful blasts completed in the hard rock. The main ore body at Ngoualana has been exposed, and Kodal has already mined a total of 59,500 tonnes of ore with an average grade of 1.20% Li2O. This early mining success provides a solid foundation for the commissioning phase, slated to commence soon.

The company’s open-pit mining activities and efficient ore extraction strategies have laid the groundwork for a seamless transition into the production phase.

Promising Drilling Results and Resource Expansion

The Boumou prospect has delivered encouraging results from its diamond drilling programme. Kodal has received assay results confirming wide, high-grade pegmatite intersections, reinforcing the continuity of the mineral resource. The positive drill results suggest strong potential for expanding the existing resource base, which could further enhance the project’s economic profile.

Aylward noted: "The diamond core drilling results from Boumou confirm the continuity of the wide, high-grade pegmatite veins and highlight the potential to continue expanding the mineral resource base at the Boumou prospect."

Financial and Partnership Updates

In a key financial update, Kodal has received the first half of a $15 million payment related to the transfer of the Bougouni licence. Discussions with project partner Hainan are ongoing, focusing on finalising the remainder of the payment and securing a comprehensive offtake agreement. The commercial terms have been agreed upon, with the final settlement details under negotiation.

Kodal’s collaboration with Hainan underscores its strategic approach to securing stable, long-term partnerships and ensuring a robust supply chain for the Bougouni project.

Outlook and Next Steps

Kodal Minerals remains focused on delivering its flagship Bougouni Lithium Project on time and within budget. The upcoming commissioning of the crushing circuit in December 2024 marks a critical milestone in its path towards early 2025 production. Additionally, continued exploration and resource expansion at the Boumou prospect offer promising prospects for enhancing the project’s overall value.

As Kodal progresses towards its production target, it aims to solidify its position in the lithium market, leveraging strong partnerships and robust project execution strategies to meet rising global demand for battery-grade lithium.