In its results statement covering the six months to the end of September, Kodal reminded shareholders that it received the environmental permit for the development of the project last month and said the project has received strong support from the local community, stakeholders and Government officials.
The final technical reports needed for the mining licence application are under review. The company expects to achieve a fully permitted Bougouni Lithium project in the first half of 2020.
As one might expect of a pre-revenue company, Kodal is currently loss-making but the half-year loss before tax narrowed slightly to GBP338,574 from a loss of GBP354,979 in the corresponding period of 2018.
Cash balances as at the end of September had declined to GBP315,000 from GBP2.38mln a year earlier and GBP1.41mln at the end of March 2019.
The company has indicated it will need to raise further funds to continue its development work and to be able to continue as a going concern for the foreseeable future.
“In November 2019 the bulk sample of lithium mineralisation from the Ngoualana prospect (within the Bougouni project) arrived at the processing plant in the Shandong province of China,” noted Bernard Aylward, the chief executive officer of Kodal.
“The bulk sample will be tested at a production plant with a processing flowsheet and design layout similar to the plant proposed for our Bougouni Lithium project. This testing will provide valuable first-hand knowledge of the behaviour of the mineralisation to crushing and processing and will allow the company to make final updates to the process design prior to undertaking construction. The bulk sample will be treated when there is availability at the processing plant, with a full report and analysis of the treatment expected in the New Year,” he added.
Aylward said the company continues to monitor the security of its tenure over the whole Bougouni Lithium project and, as part of the ongoing work with the Mali Government, has secured new licences valid for up to a further seven years.