Kodal reports further progress on development at Bougouni

16th Dec 2022 17:16

(Sharecast News) - West Africa-focussed explorer and developer Kodal Minerals updated the market on development progress at the Bougouni Lithium Project in southern Mali on Friday.

The AIM-traded firm said it was progressing with plant engineering and environmental studies required for the dense media separation plant option.

It added that it was also finalising engineering and environmental work to support formal approval for the dense media separation option from the Mali government, for which application was currently set to be submitted early next year.

The current status of work saw the dense media separation plant concept designs and the tailings storage layout and concept design both complete, while the environmental studies required for the change notification were in progress.

Kodal said an exploration manager had also been appointed to lead all exploration and pre-development activities from site, with a focus on expanding dense media separation ore sources within the existing mining licence permit area.

Canaccord had also been appointed as joint broker.

"Our engineering team has made great progress with the various design concepts and environmental updates required to finalise the requirements to commence the fast-track dense media separation (DMS) development," said chief executive officer Bernard Aylward.

"We anticipate that the formalised change notification will be issued to the Malian authorities in early 2023.

"The recent decision by the Mali Ministry of Mines to suspend the issuance of new mining permits does not impact the company's development progress."

Aylward said engineering activities had thus continued to progress alongside the company's ongoing negotiations with potential financing partners.

"To support the company's fast track development timeline, Kodal has re-appointed experienced exploration manager George Michaelides.

"George was responsible for the Company's initial exploration and drilling programmes at Bougouni, from which our 21.3 million tonne resource was defined."

Bernard Aylward said Michaelides would be tasked with expanding the firm's resource base, with the aim to extend the life-of-mine.

"We are also pleased to announce the appointment of Canaccord as the company's joint broker, enhancing our corporate coverage in partnership with our long-term broker SP Angel.

"We look forward to the contribution Canaccord can make as we progress with our financing solution for the development of the Bougouni lithium mine."

At the close on Friday, shares in Kodal Minerals were down 9.31% at 0.23p.

Reporting by Josh White for Sharecast.com.