Kodal Minerals has announced significant advancements in its Bougouni Lithium Project in Southern Mali. The project, fully funded by a US$117.5 million transaction with Hainan Mining, is progressing on schedule with major construction milestones imminent.

Bougouni Lithium Project Funding and Progress

The Bougouni Project’s funding was secured through a substantial financial commitment from Hainan Mining, ensuring a smooth progression towards production. The total capital expenditure is earmarked at US$65 million, reflecting the project’s scale and the expected annual production capacity of 125,000 tonnes of lithium.

Timely Manufacturing and Shipping Initiatives

Manufacturing of the Dense Media Separation (DMS) processing plant and the crushing circuit of the Bougouni Lithium Project is underway, with equipment expected to be shipped from China to West Africa around June 5, 2024. The project team has successfully orchestrated logistics to minimize delivery times and ensure timely construction commencement.

On-Site Developments and Contractor Mobilization

Significant site preparation has been achieved with the help of mining contractors Auxin Mining Services Mali SARL and Enterprise Générale Traoré et Fréres SARL. These efforts are set to support the start of plant construction in early June. Additionally, Kodal Minerals has awarded the civil construction contract for the Bougouni Lithium Project to Bambara Resources SARL, working in partnership with GZB Mali, a subsidiary of the Chinese Gezhouba Group.

Bougouni Lithium Project : Geological Surveys and Drilling Results

Continued drilling at the Boumou prospect within the mining license has shown promising results, with geological logging confirming the presence of extensive pegmatite bodies. The project’s mineral resource estimate is expected to be significantly enhanced, with 2,128 drill samples currently awaiting assay results.

Executive Commentary

Bernard Aylward, CEO of Kodal Minerals, expressed satisfaction with the project’s progression, stating, “The Bougouni Project is advancing as planned, with both off-site and on-site developments aligning perfectly with our schedule for the first production by the end of 2024.”

Shipping and Logistics Optimized

A dedicated charter shipment is set to transport all major equipment directly to the Port of Abidjan, substantially cutting down transport times to around 21 days—a sharp reduction from the usual 45 days. This strategic move underscores the project’s meticulous planning and execution.

Local Engagement and Environmental Considerations

Kodal Minerals remains committed to community engagement and environmental stewardship. Recent initiatives include the completion of compensation protocols for land acquisition and significant contributions to local infrastructure, such as water supply systems and community farming support.

As the Bougouni Lithium Project moves closer to operational status, the focus remains on maintaining the timeline and ensuring all components are aligned for a successful production launch in Q4 2024.

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