Kodal Minerals PLC is expanding its lithium exploration activities in Ghana after entering an agreement to develop the Asamankese Lithium Project in the Eastern Region, as improving lithium prices renew interest in the mineral’s commercial potential.
The project covers approximately 156 square kilometres around Asamankese, about 75 kilometres by road from Accra. The company’s move forms part of its broader strategy to strengthen its presence in West Africa’s lithium sector and identify new sources of the mineral used in rechargeable batteries and energy storage systems.
Under the agreement with local partner GH Geo-Consult Limited, Kodal has acquired an initial 10 per cent interest in the project for US$300,000. The arrangement provides a pathway for the company to increase its stake to 80 per cent through staged investments and the achievement of technical milestones over five years.
The agreement gives Kodal an opportunity to investigate the area’s geological potential before committing to more extensive development. However, the project remains at the exploration stage, and further work will be required to determine whether a commercially viable lithium deposit can be established.
Initial rock-chip sampling has produced encouraging results, according to the company. Kodal reported lithium oxide grades of up to 2.49 per cent, with 95 of the 164 samples collected recording grades above 1 per cent. Historical samples from the area had reportedly returned results of up to 3.02 per cent lithium oxide.
These findings have provided a basis for further exploration, but surface samples alone cannot establish the size, continuity or economic viability of a mineral deposit. Additional geological investigations and drilling will be needed to determine the extent of the mineralisation beneath the surface.
Kodal planned to begin initial diamond drilling before the end of 2026. The programme is expected to help the company assess the geological characteristics of the project and establish whether further exploration is justified.
The development comes amid renewed interest in lithium as prices recover from earlier market weakness. Lithium is an important component in many rechargeable batteries used in electric vehicles, mobile devices and stationary energy-storage systems.
Price movements in the lithium market can influence exploration budgets and investment decisions. When prices improve, companies may become more willing to investigate new deposits, although the economics of individual projects depend on factors such as resource quality, extraction costs, infrastructure, financing and regulatory requirements.
For Ghana, further exploration at Asamankese could contribute to efforts to identify additional mineral resources and diversify the country’s mining industry. The country has traditionally relied heavily on gold, while lithium exploration has attracted growing attention because of demand associated with battery technology and the global energy transition.
Nevertheless, exploration success does not automatically translate into commercial production. A project must undergo additional technical and economic assessments, obtain the necessary approvals and demonstrate that extraction can be carried out profitably and responsibly.
Kodal’s agreement with GH Geo-Consult therefore represents an early-stage opportunity rather than confirmation of a new commercially recoverable lithium resource. The planned drilling programme and subsequent technical studies will be important in determining the project’s prospects.
As lithium prices and investment interest evolve, the Asamankese project will be watched for evidence that the initial sampling results can be supported by more detailed exploration.
Source: Thepressradio.com
