Kodal Minerals (LON: KOD) has announced the discovery of further mineralized extensions at the Boumou prospect within its Bougouni lithium project in southern Mali, which is on track for first production in the fourth quarter of this year.
The company said on Tuesday it had identified high-grade, wide lithium mineralized intersections at spodumene-rich veins. Ongoing diamond core drilling aims to further test the prospect, with additional assay results still pending.
The length of the Boumou prospect pegmatite bodies has expanded to 970m, which is an increase of 470m from earlier findings. The strike remains open and extends further along the prospect, the company noted.
Kodal expects the ongoing diamond core drilling to inform Stage 2 flotation design and optimize the mining schedule for both the Boumou and Sogola-Baoule prospects on the Bougouni licence.
Chief executive Bernard Aylward expressed optimism about the prospect, noting that the new high-grade intersections further validate the continuity of the pegmatite mineralization, initially defined in a March 2023 drilling campaign.
Located 170 km south of the capital city Bamako, the Bougouni project is situated in an area hosting several established mining operations, including Hummingbird’s Yanfolila mine and B2Gold‘s (TSX: BTO) Fekola mine.
Kodal is in competition with Australia’s Leo Lithium (ASX: LLL) to develop Mali’s first lithium mine. Kodal received its licence in late 2021, while Leo Lithium, now backed by China’s Ganfeng Lithium, was awarded the right to develop its Goulamina asset in August 2019.
Shares of in the company jumped as much as 14% after the announcement closing 8.2% up at 0.62p. This leave lithium developer with a market capitalization of £123 million ($156m).
