Kodal Minerals has the exclusive access rights for exploration and development of the Djelibani Sud and Kambali licence areas by the concession owners, Gold Corporation Mali SARL and Tourekounda SARL respectively (together the “SLAM Project”).
Kodal Minerals acquired an interest in the SLAM Project in Mali as part of the acquisition of IG Bermuda in May 2016. The project consists of two nearby licence areas in south-west Mali, Djelibani Sud and Kambali.
Following a final payment of US$25,000 in May 2017, the Group owns the Djelibani Sud licence outright and the licence is being transferred in to the name of IG Mali. The Group holds its interest in the Kambali licence by way of an agreement with Tourekounda SARL (“Tourekounda”) granting exclusive access rights for exploration and development of the licence.
Under the terms of the agreement with Tourekounda the Group has an option to acquire the Kambali licence following a final payment of US$80,000 (however, a reduction of this amount is expected to be negotiated). The Kambali licence expired in July 2016 and a one year extension has been applied for via Tourekounda which is pending formal acceptance by the DNGM. No further payment will be made to Tourekounda until the licence has been extended.
The SLAM Project is located in south-western Mali, approximately 100km from the capital Bamako in the “Siguiri Basin” sequence, which hosts extensive gold mineralisation including the Siguiri Mine (Anglogold Ashanti Limited), the Lefa Gold Mine (NordGold N.V) and the Tri-K Project (Avocet Mining plc).
The former owner of the SLAM Project announced results of an aircore drilling programme at the Kambali licence which highlighted the prospectivity of the SLAM Project, with gold mineralisation returned from shallow depth, and the mineralised system remains open along strike. An extensive zone of artisanal workings is located within the Kambali exploration licence area, and reconnaissance drilling confirmed primary gold mineralisation beneath the shallow workings.
Results of the wide-spaced reconnaissance drilling included:
- 3m at 5.64g/t gold from 3m within a zone of 6m at 2.88g/t gold from 3m; and
- 6m at 1.12g/t gold from 30m to end of hole within a broad zone of 15m at 0.62g/t from 21m.
The next stage of work to be undertaken by the Group for the SLAM Project will require follow-up drilling at Kambali (subject to receiving an extension to the licence term) to attempt to define and extend the gold mineralised structure. It is anticipated that a second stage of reconnaissance aircore drilling will be completed prior to RC drilling.
No drilling has been completed on the Djelibani Sud exploration licence area. Review of the surface geochemistry has highlighted a strong surface anomaly that is associated with laterite material, and minor artisanal workings. This area requires infill geochemistry to define targets for drill testing.