Kodal Minerals PLC (AIM:KOD) said it expects to submit its application for the switch to a dense media separation (DMS) plant at its Bougouni lithium prospect to the authorities in Mali early in the New Year.
The DMS option is a much cheaper upfront option, said Kodal, based on feeding 1Mtpa of lithium ore to produce 130,000 tonnes per annum of spodumene concentrate with an initial four-year mine life.
Bernard Aylward, Kodal Minerals’ chief executive, said: “By opting for the construction of the DMS plant as the starting plant, we are increasing our chances of achieving our goal of becoming the first operational lithium mine in Mali.
“In addition, the reduced capital, and operating costs of the DMS development option provides Kodal with a near-term solution to take full advantage of the continuing buoyant lithium market once sufficient funding is secured."
Aylward added that Kodal had reappointed exploration manager George Michaelides to extend the resource base and extend the life of the mine.
"The lithium market remains strong and our Bougouni project continues to attract considerable interest. The DMS development option has been well received by the wider market, and Kodal is progressing discussions with market operators and potential financing partners,” he added.
Kodal posted losses of £491,000 (£373,000) for the six months to end-September 2022, with a cash balance of £2.63mln at the end of the period.