Kodal Minerals PLC (AIM:KOD) said it was reviewing a 2020 feasibility study on its flagship Bougouni lithium project in Mali, where it was recently granted a mining licence, ahead of a final investment decision next year.
“We have been undertaking a review of our existing feasibility study to upgrade costs and estimates to reflect current expectations and best practices,” said chief executive Bernard Aylward.
“This work has included a review of our proposed treatment plant plans undertaken with a major Chinese consulting and construction group, to update our original capital estimates and look to improve our flowsheet and metallurgical recoveries.”
A report containing the proposed plant design and upgrades to cost estimates is expected by the end of January 2022.
"The lithium spodumene market, and in general the lithium-ion battery market, is continuing to show very strong market sentiment,” said Aylward.
“Kodal notes the increasing demand and price for the spodumene concentrate type it intends to produce and how the current market price exceeding US$2,300 per tonne of concentrate compares very favourably with the price of US$680 per tonne used as the initial price in our 2020 feasibility study.
“We have outlined a work programme required to update our feasibility study and increase confidence in our existing mineral resource estimate to allow a final investment decision in the first half of 2022."
The AIM-listed company has also started social impact and land usage studies for the community inclusion package for the mine development.
Kodal also announced that an initial drilling programme at the Fatou gold project, also in Mali, has been completed and that results are expected in January 2022.
The drilling indicated zones of sulphide mineralisation as well as highlighting extensions of artisanal workings.
The drilling was focussed on the northern Fatou area where an historic NI43-101 resource estimate had previously been completed around an area of significant artisanal workings. Kodal said drilling was unable to reach the planned depth in five of the eleven completed holes due to the presence of artisanal workings and poor ground conditions.
Elsewhere, Kodal has completed a community follow-up at the Nielle project in northern Cote d'Ivoire. It has held consultations with local farmers about gaining access to areas for drilling in late December-January.
Kodal expects to complete a programme of follow-up drilling as soon as possible to infill and extend the gold mineralised intersections from previously announced initial drilling.
"Kodal is now working on multiple projects across southern Mali and Northern Cote d'Ivoire, including working towards construction at our fully permitted Bougouni lithium project and proving up what we believe will be a very significant global resource inventory across our gold assets,” said Aylward.