DYOR....but this is looking promising imvho!



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30 August 2016

Kodal Minerals Plc



("Kodal" or the "Company")



Acquisition of High Grade Lithium Project in Southern Mali



Kodal, the mineral exploration and development company with interests in West Africa, is pleased to announce it has entered into an agreement with Gorutumu Mining SARL ("Gorutumu"), giving Kodal the exclusive rights to explore and acquire a controlling interest in a prospective high grade lithium project in Southern Mali (the "Agreement"). This is in line with Kodal's strategy to identify value accretive strategic mineral opportunities in West Africa.



To view this announcement with the maps included (Figures 1 and 2) please click on the following link: http://www.rns-pdf.londonstockexchange.com/rns/3589I_-2016-8-29.pdf



Highlights

· The Agreement grants Kodal exclusive rights to explore the 250km2 Madina concession in southern Mali ("Madina" or the "Project") (refer Figure 1);

· As part of the Agreement, Kodal has the option to acquire a 90% interest in Madina by completing payments totalling US$140,000 over three annual stages with the initial payment of US$25,000 having been made to Gorutumu;

· Lithium bearing pegmatite units identified in the Project, with initial sampling returning high-grade lithium anomalies (>2% Li2O) (refer Figure 2);

· Historic geochemical sampling has indicated zones of anomalous lithium response associated with known pegmatite and has identified new areas to be reviewed;

· Field review and reconnaissance mapping of pegmatite occurrences to be undertaken immediately - geochemical sampling and prioritisation for drill testing will be completed with the aim of drilling as soon as possible;

· Key targets identified that have potential to advance the Project rapidly with the aim of delineating a mineral resource estimate;

· Lithium has been identified by the Board as a high-value strategic mineral having recently seen strong demand for batteries (electric cars and static storage) and tight supply apply upward pressure on prices;

· Madina is also prospective for gold mineralisation, with previous geochemical sampling returning anomalous gold values - review of exploration work and further follow-up will be undertaken following assessment of lithium potential;



Bernard Aylward, CEO of Kodal Minerals, said: "The market dynamics surrounding lithium are highly compelling, and I am delighted to announce the acquisition of, what I believe has the potential to be, a quality, high grade lithium project with identified priority targets and known mineralisation. The acquisition of Madina is a direct result of our team leveraging its extensive West African experience to identify value accretive opportunities to build a portfolio of quality assets. We now intend to apply our exploration expertise to the Project and rapidly advance it towards proving up a JORC compliant mineral resource. Further news regarding this exploration process, and concurrent work programmes across our gold properties, will be made in due course."


It's all looking very encouraging and perhaps the sp is finally starting to recover.

Already hold Orocobre, LIT and others and added this on the back of the Times article. There will be some interesting developments in the coming years.

Classification of Mineral Resources and Reserves

In the early days of mining there were no standards for the reporting of mineral assets. Companies, or individuals, would usually take grades observed in drill core and using some clever geometry extrapolate them to define a deposit. This usually involved a large amount of guesswork and errors in the tens of percents were not uncommon. This was an investor’s nightmare, as companies would generally pad their numbers along the way. Over the past 50 years some of the more developed nations have implemented reporting standards that can be used across the board. An example of which are the guidelines set out by the Society for Mining, Metallurgy and Exploration (SME) in the United States. Over the past two decades work has been done to harmonize an internationally accepted standard for mineral asset reporting. In 1994 the Committee for Mineral Reserves International Reporting Standards (CRIRSCO) was formed. The committee is a grouping of representatives of organizations that are responsible for developing mineral reporting codes and guidelines in most parts of the world (Australia, Asia, Canada, Chile, Europe, South Africa and the USA). Upon inspection of the list one would notice the absence of China, Russia and India. These countries use similar, but in most cases more elaborate classification schemes.

The difference between a resource and reserve basically boils down one thing: a feasibility study.

Not included in the classification, but often mentioned is a mineral occurrence. Usually an occurrence is synonymous with a prospect or a “showing”. The term itself does not have any real economic meaning, although the mineral occurrence is generally a mineral of economic interest. An occurrence is often mentioned in a report because of the prospect of finding a larger amount of the mineral in close proximity to the occurrence. It would suggest further exploration in the area.

The implemented by CRIRSCO require that report estimates be carried out by a “Competent Person”, also referred to as a “Qualified Person”. This person must be an accredited professional with at least five years experience in the activity, commodity and situation being reported on. This is generally a geologist or engineer with significant experience in mineral exploration, mineral project assessment or mine development.

The terminology used to define mineral assets is divided into 2 major groups:

Resources and Reserves.
Resources and Reserves: The relationships between the five groups of mineral asset reporting.

Mineral Resources
A Resource is a concentration of a minerals that has a reasonable prospect of economic extraction. Its location, grade, quantity and continuity are reasonably known from specific geological knowledge and evidence. Essentially, a prospect is not a Resource until enough work has been done to demonstrate a good understanding of the mineral occurrence, and the quantity and quality show the potential make it an economic play. Within the Resource category there are a few more specific sub-categories.

An “Inferred Resource” is one that is based on limited sampling and is based on reasonably assumed, but limited information. Samples might include those from outcrops, trenches, pits or drill holes. Previous geological maps may allow for reasonable assumptions about the size and scope of the resource.
An “Indicated Resource” is a Resource whose quantity, grade (quality), shape, size and continuity can be more confidently reported. Larger and more closely spaced samples have more reliably established the characteristics of the resource to the point where preliminary economic viability and resource extraction calculations can be made.

A “Measured Resource” represents the highest level of geologic knowledge and confidence in a Resource. The Resource characteristics are well established through detailed and reliable exploration work. Economic and technical factors can be more confidently applied. Mine and production planning can give more detailed estimates of economic viability.

It should be noted that with many projects, a combination of confidence levels and Resource level classifications may be used. A company may target a primary deposit as its “Measured Resource”, but have reasonable evidence of an “Inferred Resource” in the vicinity of the main deposit or “along the trend” of the primary project area.

The decision of which term should be used lies in the hands of the Competent Person preparing the report.

Mineral Reserves
The difference between a resource and reserve boils down one thing: a feasibility study. At the very least a preliminary, or “pre-feasibility” study must be completed which takes into account the “Modifying” non-geological factors. These include technical factors include mining, processing, metallurgy. They also include mine planning, economic planning, environmental and community related factors.

A Reserve is Probable when economic extraction CAN BE justified. A Reserve is Proven when economic extraction IS justified. This distinction is generally based on the geologic knowledge and as with Resources many projects include a hybrid classification (eg. “Proven and Probable”).

It’s important to note that the arrows are two-sided, this means that not only can resources and reserves be upgraded to reserves but the reverse can also be true. Sometimes reserves are downgraded when information pertaining to modifying factors is flawed or turns negative. This can happen quickly when commodity prices turn South.

When evaluating projects and companies pay particular attention to the variable modifying factors, particularly the break-even commodity price used in determining economic feasibility. A break-even price that’s near to a recent market high might be a risky investment. In addition, since many companies may lump “proven and probable” or “inferred and indicated” together, be sure to get the breakdown. How much is proven? How much is probable?

Lastly, understand that all of this information comes from people that provide it. Ultimately you’re relying on the judgement of the Management team and its Competent Person.

edit

Fully loaded here now for an exciting week ahead!!! Lithium is the new Gold

Got some at 0.277p

has been difting to this point and bouncing back for the last 3 days
small spread and better price 0.27 v 0.28p
Leevel 2 of 2 v 1

Well, sp has taken a dive today - reading earlier posts it was v.high (DYOR) but now just 0p18 - The result of today's RNS saying an earlier license was "lost" by incompetence by their partner's omissions. Oh dear. However, KOD isn't knocked-out yet, as they hope to reinstate the Licence for exploration with a local Mining Co closer to officialdom, er, I think. see RNS ...

Several RNS suggesting Gold and Lith deposits.... one might expect sp to rise....but it's stuck at current prices (=0.19pence - DYOR), for a while more, I guess. Maybe no-one believes they will come good.... That must be it. Miners frequently run out of money despite telling everyone they have value in the deposits . . . sadly6 they can't find anyone that wants to continue digging....

Anyone?
.
.
EDIT (14March2018)- sp 0p19 DYOR . . . er, this is as bad as it gets methinks... positive Gold-news I read; yet no-one wants to buy the stock.
EDIT(5June2018)- sp 0.14 and extensive deposits were ann. recently ... I guess no-one believes KOD can perform. Last year's AGM was a tad grim, although well-stocked with hangers-on ...er, IMHO - DYOR.
EDIT(7June2018)-sp=0.15 is hardly an improvement, but FWIW I heard on R4 an item on Lithium.... suggesting it was big in Africa...I recall Zimbabwie was mentioned, but I guess almost anywhere is possible...It's where you can fetch it (i.e. the Infrastructure is very important.... which is where I'm not getting the best of signals from KOD) - - - indeed I get the impression the Dir would like to Sell the Co. - rather than do any digging. . . . . DYOR.
EDIT (18June2018)-very small sp rise as China invests more - Will this become a take-out, at these low prices?
EDIT (13July)-Seems SuChing(?) =China Co. has invested ~£1.2m DYOR and now holds 29% of our company - looks like Retail Shareholders are being pushed aside . . . anyone?
With "lithium" being the "new Nuclear" - I'd expect this outfit to be more valuable, but their sp performance to date has been a long downhill run.
EDIT (1Aug2018)- Co ann participation in "Shares" event later this year DYOR, with sp up only a little to 0.17 pence....not a stonking stock, but maybe some hope for the future? [=EDIT-13Aug-sp=0.27pence=].
EDIT (28Aug2018)- I may have understood for now, sp doubled abt. 30July2018 and the RNS giving good results of drill-survey was posted 22Aug....giving those with better knowledge than most the opportunity to buy-in . . . no doubt they will sell when the Market props up this price..... I think the Co. should have made an interim statement 20-days prior to these "Results".... What do others think?
EDIT(3Dec2018)-sp 0.15 (down a bit, even though lithium is discovered in Malawi. I thought that was what they were looking for?