Name of the Project
Bougouni lithium project.

Location
Southern Mali.

Project Owner/s
Gold and lithium miner Kodal Minerals.

Project Description
The project proposes the development of an openpit contract mining operation, and a conventional milling and flotation processing facility capable of treating two-million tonnes a year of ore, complete with asso­ciated infrastructure to mine and process about 16-million tonnes of pegmatite ore over an initial 8.5-year mine life.

Production will average 220 000 t/y of 6% spodu­mene concentrate. Over the life-of-mine the project is expected to produce 1.94-million tonnes of concentrate.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated after-tax internal rate of return of 91.2%, with a payback of 0.8 years.

Capital Expenditure
The project is estimated at $154-million, plus contingency.

Planned Start/End Date
Not stated.

Latest Developments
Kodal has agreed to a conditional funding package of just under $118-million with UK-based Xinmao Investment, which will fully fund the development and start of production at the Bougouni project.

The financing will also support a major exploration programme at the site to define additional lithium mineralisation and increase the life-of-mine.

The investment enables Kodal to fast-track to production of spodumene concentrate in a strong market.

The level of funding enables Kodal to fully fund the dense-media separation plant, with mining planned to start at the high-grade Ngoualana deposit.

Kodal is aiming to complete an offtake agreement for the amount of product that is free to sell outside of existing arrangements and will also review the potential to become involved in downstream processing to enhance the value of the product.

The terms of the funding agreement include Hainan’s becoming a 51% shareholder in Kodal’s newly incorporated UK subsidiary, Kodal Mining UK. In turn, this company will become the shareholder of a new Mali mining company – to be formed by Kodal – to own and develop the Bougouni project.

In addition to the funding agreement, Hainan has indicated it will complete an equity subscription to Kodal for $17-million, which will result in its becoming the biggest shareholder of 14.8% in Kodal.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Kodal Minerals, tel +44 20 3463 2260.