5th Sep 2018 10:48
LONDON (Alliance News) - Kodal Minerals PLC on Wednesday published its maiden resource estimate for the Bougouni lithium project in Mali, showing "potential for future mining development".
The resource estimate showed mineralisation captured within the conceptual open pits totalling 13.2 million tonnes at 1.2% lithium oxide.
Shares in the company were trading 25% lower at 0.19 pence per share.
"Preliminary open pit optimisations have been undertaken to identify key areas for further drill testing and definition of the pegmatite hosted mineralisation," the company said.
Kodal added that it also had commissioned a processing review based on the ongoing metallurgical test-work for the Bougouni mineralisation.
"This review indicates a capital cost of AUD14 million for a 1 million tonnes per annum dense media separation plant component. A full plant will require a crushing circuit and additional materials handling components," the company added.
The processing review also indicated a potential production cost of USD400 per tonne of spodumene concentrate compared to a current market selling price of between USD800 and USD900 per tonne.
"This maiden mineral resource estimate is a major milestone in the advancement of the Bougouni lithium project as it confirms the potential for future mining development," Chief Executive Officer Bernard Aylward said.
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