Kodal Minerals’ primary focus is on the development of a mining operation at the Bougouni Lithium Project in southern Mali – an emerging lithium province which has already attracted the attention of investors and off-take partners seeking to secure long-term supply of strategic commodities including lithium.
A Feasibility Study published in Q1 2020 highlighted the potential for a very robust mining operation with a minimum 8.5-year mine life and a payback period of 0.8 years with an IRR of 91.2%. The Company received approval for Environmental and Social Impact Assessment application in Q4 2019 and a Mining Licence application was lodged in 2020.
The Mining Licence was granted in early November 2021 to Kodal’s Mali subsidiary company, Future Minerals SARL, and is valid for an initial 12-year term and renewable in ten-year blocks until all resources mined. The Mining Licence is granted under the 2019 Mining Code and extends over 97.2 square km covering the proposed open-pit mining and processing operation at Bougouni.
The timing of Kodal’s permitting and development timeline highlight how well positioned we are to capitalise on the widely forecast lithium shortages which are expected by 2023. Kodal is confident of achieving support to finance the capital required for developing Bougouni, and reaching our target of being the first lithium mine in Mali.
The Company holds a highly prospective suite of gold assets in West Africa. Exploration and resource definition programmes are underway across a number of priority licences in order to deliver a sizeable JORC Resource inventory.
The Company delivered an update on the Project Feasibility Study and development status for its Bougouni Lithium Project in June 2022, based on a review of the engineering, process recovery and capital cost for the Project operation and improved financial consideration based primarily on an improved market outlook for the sale of lithium spodumene concentrates.