Aim-listed gold and lithium explorer and developer Kodal Minerals has completed an initial reverse circulation drilling programme at the Fatou gold project, consisting of 11 drill holes for 1 242 m.

However, the company states that it was unable to reach the planned depth in five of the 11 completed holes as a result of the presence of artisanal workings and poor ground conditions.

CEO Bernard Aylward explains that the initial target area has widespread artisanal workings and the historic drilling has not been able to test fully the extent of the gold mineralised zone.

The Fatou project, hosted within the Birimian sequence of West Africa, comprises two concessions – the Fininko (also known as Fatou) and Foutière concessions – located 280 km south of Bamako, in Mali.

The project forms a contiguous landholding exceeding 300 km² and has been acquired through agreements with local vendors.

Initial geological logging of the drillholes has confirmed the presence of sulphide mineralisation and alteration of host rock geology that may indicate the presence of gold mineralisation, while all assay results are pending.

The drilling programme and ongoing geological review of the Fatou project highlights an extensive structural zone of gold mineralisation that currently remains open to the north and south.

Kodal will review additional work following receipt of all assay information. However, in a statement, the company says the project remains “very prospective” and that historical exploration activity has previously defined a National Instrument 43-101 mineral resource estimate that Kodal is looking to validate and expand through its exploration activities.

He says the company is currently working on multiple projects across southern Mali and northern Côte d’Ivoire, including working towards construction at its fully-permitted Bougouni lithium project and proving up what it believes will be a significant global resource inventory across its gold assets.

“Our initial drilling is planned to confirm areas of known mineralisation and attempt to extend to the north along strike,” says Aylward.

Kodal’s geologists are reporting zones of sulphide mineralisation that is expected to correlate to gold mineralisation and reporting new zones away from the artisanal workings, he adds. “All our samples have been dispatched to the laboratory and results are expected in January.”
 
Going forward, Aylward says, Kodal is in the position of being fully permitted to start development activities at the Bougouni lithium project, having that project’s mining licence in hand.

“We continue to focus on the community and environmental aspects of our development activity in the region and are building on our strong relationships as we move to finalise community development and compensation packages as part of our mine development,” he says.

In addition, Kodal has been undertaking a review of its existing feasibility study to upgrade costs and estimates to reflect current expectations and best practices. This work has included a review of Kodal’s proposed treatment plant plans undertaken with a major Chinese consulting and construction group, to update Kodal’s original capital estimates and look to improve its flowsheet and metallurgical recoveries. 

“Results of this important work are expected by the end of January,” says Aylward.

“The lithium spodumene market, and in general the lithium-ion battery market, is continuing to show very strong market sentiment,” he notes.

As such, Aylward says Kodal has noted the increasing demand and price for the spodumene concentrate type the company intends to produce and how the current market price exceeding $2 300/t of concentrate compares “very favourably” with the price of $680/t used as the initial price in Kodal’s 2020 feasibility study.

“We have outlined a work programme required to update our feasibility study and increase confidence in our existing mineral resource estimate to allow a final investment decision in the first half of 2022,” he concludes.