A feasibility study into mineral exploration and development company Kodal Minerals’ Bougouni lithium project, in southern Mali, has demonstrated robust economics for the development of the project, the company reported on Monday.
The company completed the study as part of its mining licence application for the project, which it has now submitted to the government.
The application, lodged with the Mines Department in Mali – Direction Nationale de la Géologie et des Mines (DNGM), covers a proposed openpit mining and processing operation at Bougouni.
The feasibility study presents a very robust mining operation, with a minimum mine life of eight-and-a-half years.
It indicates the mine producing on average 220 000 t/y of 6% spodumene concentrate, at a life-of-mine (LoM) lithium average metallurgical recovery of 71%, based on laboratory metallurgical recoveries of 75%.
Total LoM will produce 1.94-million tonnes of concentrate.
LoM revenue exceeds $1.4-billion, with an initial concentrate sales price of $680/t based on operations beginning in the second half of 2021, thereafter, increasing 2% year-on-year.
The study also considered the proposed two-million-tonne-a-year processing plant using a conventional flotation circuit to maximise spodumene recovery.
“This is another significant step on our path to the development of the Bougouni lithium project. The lodging of the application marks the culmination of a period of intensive work by our project development team, led by Steve Zaninovich, and highlights the viability of a commercial mining operation at the project.
“The company will continue to work closely with the Mali government to advance the application process as quickly as possible,” commented Kodal CEO Bernard Aylward.
He indicated that the optimisation studies undertaken at Bougouni would continue as this phase of work had highlighted significant opportunities to improve the proposed operation.
Moreover, the company will continue its focus on exploration and definition drilling to further increase its resource base.
“The expected timeframe for our operation to be producing spodumene concentrate is in the second half of 2021, and on current forecasts we will be coming into production in an improving lithium market, which provides further confidence in the robustness of the project,” said Aylward.