LONDON (ShareCast) - (Sharecast News) - West Africa-focussed mineral exploration and development company Kodal Minerals updated the market on its gold exploration projects in southern Mali and Cote d'Ivoire on Friday, reporting that a review of the Fatou Gold Project in Mali was continuing, with further field reconnaissance highlighting "extensive" artisanal workings and geological control on mineralisation.
The AIM-traded firm said a drilling programme was being finalised with initial diamond drilling and reverse circulation drilling planned for the Fatou Main and Fininko prospects.

It said an ongoing review of historic drilling was highlighting zones of high-grade mineralisation that would be followed-up as a priority.

Meanwhile, in Côte d'Ivoire, Kodal said it had completed 508 surface geochemical samples at the Dabakala project, to infill the "extensive" eight kilometre by two kilometre surface anomaly.

It said "extensive" artisanal workings had been identified along the strike of the geochemical anomaly, further enhancing the Dabakala target zone.

Looking at the proposed funding agreement it announced on 17 December, to provide up to $2.5m from the AIM-quoted Riverfort Global Opportunities, Kodal said "good progress" had been made with the investors in finalising the agreement, with due diligence nearing completion and documentation in progress.

It noted that, due to delays over the Christmas period, an extension of two weeks had been granted to the investors for completion of due diligence and final contract.

"We are looking forward to commencing drilling at the Fatou Project as soon as possible once the funding agreement is finalised," said chief executive officer Bernard Aylward.

"The review is continuing to highlight opportunities to extend the previously defined gold prospect, as well as priority exploration targets.

"The focus of the drilling will initially be to confirm findings of previous drilling and geological information, however, we will also be targeting extensions to the mineralised structure to determine the size potential of the Fatou Project."

Aylward said the "extensive artisanal workings" at the Dabakala project in Côte d'Ivoire that had developed along strike of the company's previously-defined surface geochemical anomaly were a "positive indication" of the area.

He said the firm was awaiting the assay results for the sampling, and would be looking to continue to advance the prospect through a maiden drilling programme in the current field season.

"We have been working closely with the Investors to finalise the due diligence and drafting of the final agreements for the proposed $2.5m exploration funding to be used to progress the work on our gold projects.

"As requested by the Investors, we have agreed to extend the due diligence period by two weeks due to delays over the Christmas period, however, the process is well advanced.

"Kodal has received the initial funding advance of $0.3m under the term sheet for the proposed funding agreement, and has completed the stage one consideration payments for the acquisition of the Fininko and Foutière concessions that form the Fatou Project."

At 0905 GMT, shares in Kodal Minerals were down 4% at 0.1p.

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