Name of the Project
Bougouni lithium project.

Location
The project is located in southern Mali.

Project Owner/s
Kodal Minerals.

Project Description
A scoping study completed on the Bougouni project has confirmed its outstanding potential.

The study has evaluated the technical and potential economic viability of an openpit mine development at the project’s Goulamina deposit, where a maiden mineral resource of 15.5-million tonnes at a grade of 1.48% lithium oxide has been defined.

Various processing options have been considered to optimise throughput capacity and recoveries. The current preferred option is to develop Goulamina as a one-million-tonne-a-year, high-grade openpit mine to supply material to a conventional dense-media separation plant (DMS) in Stage 1.

The scope has been defined to transition the processing plant to treat medium-grained material by DMS and flotation in later years (Stage 2).

Stage 2 will comprise the addition of a 450 000 t/y grinding and flotation concentrator to process fines and secondary DMS floats that contain economic lithium grades from finer-grained, spodumene-bearing rock. Subject to further detailed studies, the project could deliver average yearly production of about 190 000 t of 6% lithium oxide concentrate over an initial 13-year life-of-mine.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Initial start-up capital has been estimated at $47.2-million and includes associated project infrastructure.

Stage 2 capital costs have been estimated at $36.2-million, which could potentially be funded by Stage 1 cash flow.

Planned Start /End Date
Not stated.

Latest Developments
Kodal Minerals has raised £250 000 for its Bougouni lithium project.

The fundraise comprises a placing and subscription of new ordinary shares, as well as the placing out of ordinary shares allotted to SVS Securities in a fundraise announced in July.

SVS went into special administration on August 5 and, subsequently, defaulted on its contractual commitment to pay for the SVS shares.

The SVS shares were issued and admitted to trading on Aim on August 2, but not delivered to SVS, and have remained under the control of Kodal.

The company will seek to recover the shortfall from SVS between 0.05p a share, at which the SVS shares have now been placed, and the original price of 0.08p a share, which SVS contracted to pay, as well other costs incurred by the company as a result of SVS's default.

Meanwhile, work at Bougouni lithium project is continuing, as expected, and the company expects to announce positive news shortly in respect of the environmental- and social-impact assessment, the final addendum of which was lodged in early October.

Key Contracts and Suppliers
Zivvo (consultant).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Kodal Minerals, tel +61 418 943 345.