Aim-listed Kodal Minerals has gained exclusive rights to explore – and an option to acquire – two new concessions totalling 200 km2 within 25 km of the company’s Bougouni lithium project, in Mali.
The new licence areas are adjacent to the Goulamina lithium project, owned by ASX-listed Birimian, where a mineral resource of 103-million tonnes, grading 1.34%lithium oxide, has been defined.
The exploration rights were granted following negotiations with a Mali-based company, Bambara Resources. The newly granted concessions – Mafele Ouest and Nkemene Ouest – now form the Bougouni West project.
Kodal has the right to acquire 80% of the concessions through option payments totalling £185 000 in cash and £195 000 in Kodal shares over three stages.
Kodal also has the option, exercisable at its sole discretion once application for a mining licence is made, to move to 100% ownership through an additional payment of £500 000 in cash and the granting of a 2% royalty to Bambara.
Kodal CEO Bernard Aylward on Wednesday stated that, while the primary focus of the company continues to be the development of the Bougouni project, this new option agreement is a good opportunity for Kodal to expand in this highly prospective region.
“Kodal has undertaken initial ground reconnaissance during its due diligence review and has started the prioritisation of exploration targets for immediate follow-up. We intend to continue the previously successful exploration programme of surface geochemistry, ground magnetics and drilling to attempt to define new lithium mineralised zones,” he said.
Kodal is focusing its initial review and targeting on interpreted extensions of the Goulamina structure and parallel positions in a similar geological setting.
Aylward said the Bougouni region of Mali has demonstrated the presence of high-grade lithium mineralisation hosted by pegmatite veins.
Kodal is the largest holder of ground in this region and has already managed to secure ground with demonstrated lithium mineralisation at Bougouni.
“This acquisition has enhanced the possibility of further discovery and support for our proposed development of openpit mining and a spodumene concentrate processing plant centered on the region of Bougouni.”