Kodal Minerals Plc released an initial resource estimate for its Bougouni project in southern Mali, with inferred resources of 17.3 million tonnes at 1.20% lithium oxide.
The estimate uses a 0.5% cutoff and covers three deposits known as Sogola-Baoule, Ngoualana and Boumou. Sogola-Baoule hosts 10.4 million tonnes at 1.18% Li2O, Ngoualana hosts 4.7 million tonnes at 1.34% Li2O and Boumou hosts 2.2 million tonnes at 1.01% Li2O.
The company said Sept. 5 that it also completed preliminary open pit optimizations to identify key areas for further drill testing and definition of the pegmatite-hosted mineralization. The study outlined conceptual open pit material totaling 13.2 million tonnes at 1.2% Li2O.
Kodal also commissioned a third-party processing review for Bougouni based on ongoing metallurgical testing, which estimated capital costs of A$14 million to build a dense media separation component at the processing plant.
The review also defined potential production costs of US$400/t of spodumene concentrate, which the company compared to current market selling prices in the range of US$800/t and US$900/t.
Additionally, the company expects an ongoing environmental and social impact assessment on Bougouni to be completed in the first quarter of 2019.