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Kodal Minerals surges after releasing results of exploration programme at Nielle

Gold mineralisation associated with the shear zone and quartz veining has been identified, with alteration in mafic volcanics and mineralisation in altered granitoid intrusion
Gold nuggets
Kodal's JV partner, Resolute, is a leading gold development and production company with a long and successful history in West Africa

Kodal Minerals PLC (LON:KOD) has received some encouraging news relating to the Nielle gold prospect in the Ivory Coast.

An exploration programme that saw 27 drill holes completed confirmed wide zones of gold mineralisation, with areas of high-grade gold up to 13.88 grams per tonne (g/t) gold over two metres (m) returned.

Highlights from the reverse circulation (RC) drilling results included:

  • 10m at 2.00g/t gold from 26m in drill hole NLRC0004;
  • 8m at 4.26g/t gold from 8m in drill hole NLRC0006,
    • including 2m at 11.63g/t gold from 10m;
  • 14m at 1.73g/t gold from 26m in drill hole NLRC0008;
  • 26m at 1.95g/t gold from 32m in drill hole NLRC0012,
    • including 4m at 5.51g/t gold from 42m; and
  • 26m at 1.79g/t gold from 108m in drill hole NLRC0018,
    • including 2m at 6.07g/t gold from 110m.

Kodal currently holds a 100% interest in all three licences on the prospect, while Resolute Mining Limited is financing and managing the exploration programme, thereby earning a share of the project, up to a maximum 75% interest. Resolute has been granted, an extension of term for the earn-in period of the joint venture (JV) to February 2021.

Exploration is continuing at Nielle with the mineralisation remaining open along the strike and at depth.

"The Nielle prospect is located in the north of Cote d'Ivoire approximately 50km north of Randgold's Tongon gold mine. This is a highly prospective region with several exploration prospects returning significant gold mineralised zones,” said Bernard Aylward, the chief executive officer of Kodal.

“These new RC drill results highlight the potential to define a new zone of gold mineralisation within the under-explored Nielle concession and exploration is focussed on defining zones of high-grade mineralisation and extending the current footprint of anomalous gold mineralisation.

"Resolute continues to operate the joint venture and has spent approximately US$1.35 million to date. The Nielle concession has been renewed during the year and Kodal is continuing to progress the M'Bahiakro prospect application. Resolute has indicated that it will continue the exploration programme to complete the minimum US$3 million expenditure required under the joint venture agreement,” Aylward added.

Shares in Kodal were up 8.4% at 0.15p in early deals.

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