Minerals exploration and development company Kodal Minerals has recorded encouraging initial test results of the bulk sample of pegmatite-hosted lithium mineralisation from the Bougouni lithium project in southern Mali.
The test work was completed by Shandong Shengli Environment Protection Technology, a company associated with Shandong Ruifu Lithium at its Yishu plant in Shandong province, People’s Republic of China.
The Yishui processing plant is a two-million-tonne-a-year dense media separation (DMS) and flotation plant, purpose built for the concentration of spodumene mineralisation from pegmatite ore.
Recoveries of the Bougouni bulk sample from the plant achieved an overall recovery of up to 83% for a 5.5% to 6.0% lithium oxide spodumene product.
This recovery is significantly higher than the 71% recovery used in Kodal’s initial feasibility study and indicates upside on the project.
The spodumene concentrate is low in impurities with iron content reported at below 0.5%.
Bulk sample test results will be included in an optimisation study to identify upside at Bougouni.
“These results from the testing of the Bougouni bulk sample continue to highlight that the mineralisation defined at the project can be processed close to commercial scale to produce a high-grade, low-impurity spodumene concentrate suitable for processing to battery-grade lithium carbonate or lithium hydroxide.
"The bulk sample was collected from our Ngoualana prospect and this is the first area proposed for mining in our current plan,” says Kodal Minerals CEO Bernard Aylward.
He highlights that the significant improvement in the overall recovery of over 80% highlights potential improvement for the project and future revenue.
Kodal will internally undertake an update of the optimisation of the recently completed feasibility study, to investigate the potential upside possible from this improved recovery outcome using a combination of DMS and flotation.
Aylward indicates that the feasibility study, the results of which were announced in the first quarter, highlights the potential for an economically robust mining operation, with a forecast payback period of under two years and a pre-tax internal rate of return of 58%, therefore, the confirmation of potential upside is “very exciting indeed”.
“With respect to the Bougouni mining licence application submitted in January, Kodal is maintaining regular communication with officials at the Mali Ministry of Mines to monitor progress of the application.
"The application is proceeding, however, no firm timing guidance can be provided for the granting of the mining licence while Ministerial review is ongoing,” Aylward says.