Shares of mineral exploration firm Kodal Minerals (LON: KOD) are rising on Wednesday after the company provided an update on the progress of its mining licence application for Bougouni and the results of aircore drilling at the Nielle gold concession.
The Bougouni licence application has now been forwarded from the Ministry of Mines, Energy and Water to the Secretary General’s office for a final review before presentation at the Conseil des Ministres.
This is the final stage before the signing of the licence for the project in Southern Mali, with Kodal saying it has been informed that it is progressing as expected.
Commenting on the Bougouni licence, Bernard Aylward, CEO of Kodal Minerals, said: “Our Mining Licence application for the Bougouni Lithium Project is now in the final stages of approval. The new Mining licence decree has been drafted and verified by the Mali Ministry of Mines and forwarded to the Secretary General’s office. From this point the licence application is prepared for presentation at the Conseil des Ministres of Mali and following agreement will be formally approved.”
At the company’s Nielle gold project in northern Ivory Coast, aircore drill results have been returned, confirming a 4.5km gold mineralised trend with extensions of up to 1.5km south and over 1km north.
According to the company, the drill results are consistent with the initial reconnaissance drilling that discovered the Nielle mineralised zone.
Kodal’s drilling campaign has extended the Nielle gold mineralised trend and confirmed high-grade gold mineralisation. There is to be follow-up and infill drilling carried out in the next phase.
“This aircore drilling is wide spaced, however the tenor of gold anomalism returned is consistent with the initial drilling that discovered the Nielle gold mineralised zone. The Nielle prospect is at an early stage however the results received so far have given encouragement as to the possible resource potential here,” said Aylward.
Kodal’s share price has risen 5.7% on Wednesday to 0.386p.
Should you invest in Kodal Minerals shares?
Kodal Minerals shares are traded on the London stock exchange’s AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Kodal Minerals shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies