Kodal Minerals PLC (AIM:KOD) said it has now submitted formal notice that its Bougouni lithium project in southern Mali has moved into the phased development stage after good progress on the dense media separation (DMS) plant.
Notification details the Phase 1 DMS development plan at Ngoualana, followed by the future flotation operation (Phase 2).
The DMS plant design is close to completion, Kodal added, with procurement specifications finalised in readiness for the drawdown of the US$100 million funding package from partner Hainan, subject to final regulatory approvals in Mali.
Bernard Aylward, Kodal Minerals' chief executive, added: “Kodal and key Hainan representatives have met in Mali to meet with government officials and undertake site visits in preparation for the commencement of development.
“The Phase 1 DMS development plan provides a fast-track pathway to lithium concentrate production, at comparatively low capital costs and an expected construction timeline of around 12 months, exploiting the coarse-grained spodumene prevalent at the Ngoualana deposit.
"Phase 2 will see the construction and commissioning of a down-stream flotation plant which is expected to be supported by utilising Phase 1 cash flows in order to exploit the finer-grained spodumene resources at Sogola-Baoulé and Boumou, as well as longer-term exploration prospects.”