The Kodal Minerals PLC (LON: KOD) share price rose 8.14% after issuing a progress update about its Bouguoni lithium mine operations in Southern Mali. The company revealed that it had drilled 14 reverse circulation (RC) and 18 diamond drill holes at Bouguoni for a total depth of 6,360 metres.
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The mining company reminded investors that its current drilling operations were meant to develop and extend the Ngoualana prospect while including exploration drilling at the Kola, Boumou and Bougouni South prospects. The firm has dispatched 3,406 samples for laboratory testing and has received impressive results.
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Some of the samples have returned up to 2.78% Li2O, including 18m at 1.31% Li2O from 42m and 8m at 1.55% Li2O from 77m in drill hole KODGW001 at Ngoualana, 8m at 1.50% Li2O from 29m in drill hole KLRC185 and 9m at 1.47% Li2O from 29m in drill hole KLRC186 at the Kola prospect.
Kodal Minerals is still awaiting the laboratory results for 2,606 samples, which are still pending. Still, the company has continued advancing with the engineering works for the dense media separation (DMS) plant option, as outlined in a previous release.
The mining company has advanced the environmental and social studies for the DMS plant development route, including establishing a community consultation committee comprising local leaders and representatives from neighbouring communities.
Kodal reminded investors that The Mali Mining Code has a provision for issuing a notification of change to the DNGM, which is required to receive approval for the DMS development route. The company has already drafted the Change Notification, which is undergoing legal review before its formal submission.
Hainan Mining has submitted application forms and supporting information to the China National Development and Reform Commission (NDRC) and the Department of Commerce for the China approvals needed to complete its investment in Bougouni and Kodal.
Bernard Aylward, CEO of Kodal Minerals, remarked: “Kodal has continued to receive overwhelming support from shareholders and stakeholders alike for our funding package of US$117.75 million from Hainan Mining. We maintain regular dialogue with the key Hainan executives regarding the proposed Bougouni project development and plans to quickly move into a construction phase once the transaction is complete and all funds received.”
*This is not investment advice.
Kodal Minerals share price.
The Kodal Minerals share price edged 8.14% higher to trade at 0.425p, from Friday’s closing price of 0.393p.
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