Kodal Minerals PLC (LON:KOD) said good progress is being made on the funding agreement that will finance the exploration programme at the Fatou Gold Project.
Due diligence is nearing completion and documentation is in progress but due to delays over the Christmas period, an extension of two weeks has been granted to the investors for completion of the final contract.
A review of the project is continuing and a drilling programme is being finalised with initial diamond drilling and reverse circulation (RC) drilling planned for the Fatou Main and Fininko prospects.
A review of historic drilling remains in progress and is highlighting zones of high-grade mineralisation that will be followed-up as a priority.
Elsewhere, Kodal completed 508 surface geochemical samples at its Dabakala project in Côte d'Ivoire to infill the extensive 8 kilometre (km) by 2km surface anomaly.
The company is awaiting the assay results from the sampling and will be looking to kick-off a maiden drilling programme this field season.
Extensive artisanal workings have been identified along the strike of the geochemical anomaly further enhancing the Dabakala target zone, Kodal said.
"We are looking forward to commencing drilling at the Fatou Project as soon as possible once the funding agreement is finalised. The review is continuing to highlight opportunities to extend the previously defined gold prospect, as well as priority exploration targets,” said Bernard Aylward, the chief executive officer of Kodal Minerals in a statement.
“The focus of the drilling will initially be to confirm findings of previous drilling and geological information; however, we will also be targeting extensions to the mineralised structure to determine the size potential of the Fatou Project,” he added.