Kodal Minerals PLC (AIM:KOD) has confirmed that first production from the Bougouni lithium mine in Mali remains on track for early 2025 and is within the US$65 million capital development budget.
Construction progress is accelerating after the wet season, it added, with all major buildings taking shape including the main DMS module, the screening building and the filtration building.
Open pit mining activities at the Ngoualana deposit are also ahead of schedule, with several blasts conducted in the hard rock.
The main Ngoualana ore body is exposed and a total of 59,500 tonnes of ore grading on average 1.20% Li2O has been mined in preparation for commissioning.
Assay results have been received for most of the Boumou prospect diamond drilling programme, Kodal said, confirming consistent wide, high-grade drill intersections.
Kodal added that the first half of a US$15 million payment for transferring the Bougouni licence has been paid and discussions are ongoing with partner Hainan about the remainder.
Talks are also ongoing with Hainan about finalising an offtake arrangement with the commercial terms agreed, added the statement.
Bernard Aylward, Kodal Minerals chief executive, commented: “The acceleration in the Bougouni Lithium Project development is very pleasing.
“The crushing circuit and the DMS processing plant are rapidly taking shape and the commissioning of the crushing circuit will commence in December 2024 followed by the DMS units.”
“Additionally, the diamond core drilling results received from the Boumou prospect confirm the continuity of the wide, high-grade pegmatite veins and highlight the potential to continue to expand the mineral resource base at the Boumou prospect.
“Kodal and Hainan are continuing discussions regarding the off-take agreement and who will have ultimate responsibility for the settlement payment to the Mali Government.”