Modern Mining May 2020

LITHIUM

Sound economics for the Bougouni Lithium Project

Test results of the bulk sample of pegmatite hosted lithium miner- alisation from Kodal Minerals’ Bougouni Lithium Project located in southern Mali achieved an overall recovery of up to 83% for a 5,5 to 6% Li 2 O spodumene product. These, CEO Bernard Aylward tells Munesu Shoko , are good recoveries which demonstrate compelling economics for the project.

R ecently announced results of mineral explo- ration and development company Kodal Minerals’ Bougouni project’s bulk sample test work have demonstrated overall recov- ery of up to 83%, which is significantly higher than the 71% recovery identified in the company’s initial Feasibility Study. The test work was completed by Shandong Shengli Environment Protection Technology Co Ltd (Shengli) a company associated with Shandong Ruifu Lithium Co Ltd (Ruifu) at its Yishu plant in Shandong province, China. The Yishui processing plant is a 2-million tonne per annum (Mtpa) DMS (dense media separation) and flotation plant, purpose built for the

Bernard Aylward, CEO of Kodal Minerals. concentration of spodumene mineralisation from pegmatite ore. Aylward tells Modern Mining that a combina- tion of DMS and floatation has improved the overall recoveries and demonstrated a high-quality product. “The recoveries from the test work are higher than utilised in the Feasibility Study,” he says. “Our Feasibility Study has tended to be conser- vative to ensure we have an economically robust project, and this test work demonstrates upside potential through the development. The combi- nation of DMS and floatation does allow some flexibility in the production; it can allow for a lower amount of material to be put into the grinding circuit, offsetting operating costs, and also allows a mixed product (coarse and fine) material that may also attract a broader market,” he adds. Kodal’s Feasibility Study, announced in Q1 2020, highlighted the potential for an economically robust mining operation, with a forecast payback period of under two years and a pre-tax IRR of 58%. “A 58% Internal Rate of Return (IRR) is a good return,” says Aylward. “We see mining proj- ects looking to achieve a 30 % IRR, or in some cases of marginal operation commencing with 15% IRR. The better IRR we can demonstrate highlights the sound economics of the project,” says Aylward. Bulk sampling Kodal transported over 600 dry tonnes of bulk sample of pegmatite hosted lithium mineralisation

Kodal Minerals’ Bougouni project’s bulk sample test work have demonstrated overall recovery of up to 83%.

20  MODERN MINING  May 2020