Kodal Minerals, the mineral exploration and development company, has provided an update on the progress of construction for the Stage 1 Dense Media Separation (DMS) processing plant and mining activities at the Ngoualana opencast mine, part of its flagship Bougouni Lithium Project in Southern Mali. The project is fully funded through the US$117.5 million Hainan funding transaction, which includes a US$100 million investment into Kodal Mining UK Limited (KMUK), a company owned 51% by the Hainan Group and 49% by Kodal. KMUK is responsible for the project’s development.
The Bougouni Lithium Project remains on schedule, with production expected to begin in the first quarter of 2025. The project is progressing within its US$65 million capital development budget. A shipment containing the remaining steelwork, platework, mechanical equipment, electrical equipment, and piping materials has arrived at Abidjan Port in Côte d’Ivoire and is being transported to the site. Following the unusually long wet season, construction efforts have gained momentum, with structural steelwork advancing rapidly. Major components such as the DMS module, screening building, and filtration building are taking shape.
Electrical generator units are in the process of delivery, with two units having already reached Conakry Port in Guinea. These will be transported to the site shortly, while additional units are en route to Abidjan Port. Mining activities at the Ngoualana deposit are ahead of schedule, with multiple blasts completed in the hard rock. The main Ngoualana ore body is now exposed, and 59,500 tonnes of ore with an average grade of 1.20% Li₂O have been mined in preparation for commissioning.
Assay results from the Boumou prospect diamond drilling program have confirmed consistent, high-grade intersections, including 50.5 m at 1.45% Li₂O and 12.75 m at 1.80% Li₂O from drill hole KLDH029; 36.5 m at 1.30% Li₂O from drill hole KLDH038; 21 m at 1.51% Li₂O from drill hole KLDH039; and 51 m at 1.39% Li₂O from drill hole KLDH041.
Bernard Aylward, CEO of Kodal Minerals, expressed his satisfaction with the project’s progress, noting that the crushing circuit and DMS plant are advancing well, with commissioning of the crushing circuit set to begin in December 2024, followed by the DMS units. Aylward highlighted the drilling results from the Boumou prospect as confirmation of the continuity of wide, high-grade pegmatite veins and underscored the potential to expand the resource base further. Additional drilling is planned to explore extensions of the main zone, investigate new zones, and carry out geotechnical and metallurgical assessments to support open-pit development.
Kodal recently signed a binding memorandum of understanding with the Government of Mali to transfer the mining license to KMUK’s subsidiary, which will operate the Bougouni mine. The first half of the US$15 million settlement payment has been made to the Mali Government to facilitate the transfer, while discussions between Kodal and Hainan on the off-take agreement and settlement responsibilities are ongoing. This progress highlights the project’s momentum and Kodal’s commitment to delivering a significant lithium resource to meet growing global demand.
