Cardinal Expands Namdini Mining Licence Area

Cardinal Resources Limited is pleased to advise that it has received approval for the expansion of the current Mining Licence from 19 km2 to 63 km2, more than tripling the size of the Mining Licence for its world‐class Namdini Gold Project in Ghana.

Cardinal Resources Limited (ASX/TSX: CDV) is pleased to advise that it has received approval for the expansion of the current Mining Licence from 19 km2 to 63 km2, more than tripling the size of the Mining Licence for its world‐class Namdini Gold Project in Ghana.

HIGHLIGHTS

  • Mining Licence increased to a maximum allowable area of 63 km2 from 19 km2 for a term of 15 years and is renewable
  • Expanded   Mining   Licence   allows   for   further   financial   optimisation   by   repositioning infrastructure such as tailings storage facilities, stockpiles and waste dumps
  • Exploration potential enhanced within expanded area along the Namdini shear to the south

 

Cardinal’s Chief Executive Officer / Managing Director, Archie Koimtsidis stated:

“It is most pleasing to have the Minister for Lands and Natural Resources and the Minerals Commission of Ghana support our Mining Licence area expansion. The expansion aligns with the Company’s plan to not only significantly optimise the location of key infrastructure such as tailings storage facilities, stockpiles and waste dumps but also to further explore financial benefits during the Front‐End Engineering  and Design (FEED)  of  the  Namdini  Project.  Further,  it  allows  the  Company  to  expand  its  exploration  activities immediately  south of Namdini which has great potential along the southern extension  of the Namdini shear.”

Namdini Mining Licence
The Minerals Commission of Ghana has approved a significant expansion of the Namdini Mining Licence. The new Mining Licence area covers a total of 63 km2 which is the maximum allowable area (Figure 1).

A Large‐Scale Mining License covering the Namdini Mining License was granted to Cardinal Namdini Mining Limited (“Cardinal Namdini”), a wholly owned subsidiary of Cardinal Resources Limited, by the Minister for Lands and Natural Resources under the Ghanaian Minerals and Mining Act 2006 (Act 703) in 2017.

The Large‐Scale Mining Licence originally covered 19km2  in the Dakoto area of the Talensi District in the Upper East Region of Ghana. The expanded Large‐Scale Mining Licence now covers 63 km2  (Figure 1) and has been granted for an initial period of 15 years commencing in 2020 and is renewable. The expanded Large‐Scale Mining Licence allows Cardinal to optimise and de‐risk mine and infrastructure design and optimise financial outcomes as the Company continues to progress the FEED programme.

 

Cardinal is readying for development of the world‐class Namdini Gold Project located in Northern Ghana, subject to concluding project development financing. Once developed, the Namdini Gold Project is expected to produce over 360,000 ounces per annum for the first two years of operation and over the life of mine is expected to produce an average of 287,000 ounces per annum. The Definitive Feasibility Study completed in late 2019, indicated compelling economics, including a post‐tax NPV5 of over US$958 million which is capable of generating over US$1.55 billion in undiscounted project cashflow (assuming a gold price of US$1,550/oz).

Cardinal’s Project development timetable is outlined below.

Project Development Timeline

Proposed Project Development Schedule (subject to financing*)
Milestone                                                                                                                                                       Target timeline
Advance Resettlement Action Plan to completion**                                                                       Q3 2020
Advance Front End Engineering and Design (“FEED”) to completion                                         Q4 2020
Target production commencement                                                                                                          H2 2022

*The Company’s proposed project development schedule assumes that the Company is fully funded to proceed throughout and beyond the FEED process into early works and full construction. Whilst the Company is currently engaged in the financing process, the actual development schedule will depend upon the manner and timing of the Company’s financing plans as well as any potential delays that may be associated with future Covid‐19 disruptions. Dates are therefore indicative only.
**Key milestone in relation to the RAP was achieved with approval from the Minerals Commission of Ghana (MinCom) received. For more information please see ASX/TSX press release dated 11 March 2020.


Figure 1: Namdini Mining Licence

ABOUT CARDINAL

Cardinal Resources Limited (ASX/TSX: CDV) is a West African gold‐focused exploration and development Company that holds interests in tenements within Ghana, West Africa.

The Company is focused on the development of the Namdini Project, for which the Company has published a gold Ore Reserve of 5.1Moz (138.6 Mt @ 1.13 g/t Au; 0.5 g/t cut‐off), inclusive of 0.4Moz Proved (7.4 Mt @ 1.31 g/t Au; 0.5 g/t cut‐off) and 4.7Moz Probable (131.2 Mt @ 1.12 g/t Au; 0.5 g/t cut‐off).

The Company  announced  completion  of the Definitive  Feasibility  Study (DFS), which  was released  28 October 2019. The technical  report  on the Feasibility  Study,  prepared  in accordance  with  NI 43‐101  of the Canadian Securities Administrators  was issued on SEDAR at  www.sedar.com  on 28 November 2019.

Cardinal  confirms  that it is not aware  of any new information  or data that materially  affects  the information included in its announcement  of the Ore Reserve of 3 April 2019 and its completed Definitive Feasibility Study of 28 October 2019.  All material assumptions and technical parameters underpinning this estimate continue to apply and have not materially changed.

This announcement is authorized by the Board of Cardinal Resources Limited

 

For further information contact:

Archie Koimtsidis                                                                  Alec Rowlands
CEO / MD                                                                                IR / Corp Dev
Cardinal Resources Limited                                               Cardinal Resources Limited
P: +61 8 6558 0573                                                               P: +1 647 256 1922

Cannings Purple
Andrew Rowell or Peta Baldwin
E: [email protected]
E: [email protected]

In Europe:
Swiss Resource Capital AG
Jochen Staiger
[email protected]
www.resource-capital.ch

Competent / Qualified Person Statement

The  scientific  and  technical  information   in  this  announcement   that  relates  to  Exploration   Results,  Mineral Resources and Ore Reserves at the Namdini Gold Project has been reviewed and approved by Mr. Richard Bray, a Registered Professional Geologist with the Australian Institute of Geoscientists  and Mr. Ekow Taylor, a Chartered Professional Geologist with the Australasian Institute of Mining and Metallurgy.  Mr. Bray and Mr. Taylor have more than five years’ experience relevant to the styles of mineralisation and type of deposits under consideration and to the activity which is being undertaken  to qualify as a Competent  Person,  as defined  in the 2012 Edition  of the “Australasian  Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” and as a Qualified Person for the purposes of NI43‐101.  Mr. Bray and Mr. Taylor are full‐time employees of Cardinal and hold equity securities in the Company.

Disclaimer
This ASX / TSX press release has been prepared by Cardinal Resources Limited (ABN: 56 147 325 620) (“Cardinal” or “the Company”).  Neither the ASX or the TSX, nor their regulation service providers accept responsibility for the adequacy or accuracy of this press release.

This press release contains summary information about Cardinal,  its subsidiaries  and their  activities,  which  is current as at the date of this press release.   The information in this press release is of a general nature and does not purport to be complete nor does it contain all the information,  which a prospective  investor may require in evaluating a possible investment in Cardinal.

By its very nature exploration for minerals is a high‐risk business and is not suitable for certain investors.  Cardinal’s securities are speculative.   Potential investors should consult their stockbroker  or financial advisor.   There are a number of risks, both specific to Cardinal and of a general nature which may affect the future operating and financial performance  of  Cardinal  and  the  value  of  an  investment  in  Cardinal  including  but  not  limited  to  economic conditions,   stock  market  fluctuations,   gold  price  movements,   regional  infrastructure   constraints,   timing  of approvals from relevant authorities, regulatory risks, operational risks and reliance on key personnel and foreign currency fluctuations.

Except for statutory liability which cannot be excluded and subject to applicable law, each of Cardinal’s officers, employees and advisors expressly disclaim any responsibility for the accuracy or completeness of the material contained in this press release and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence  of any information in this Announcement  or any error or omission  here from.   Except  as required  by applicable  law, the Company  is under no obligation  to update  any person regarding any inaccuracy, omission or change in information in this press release or any other information made available to a person nor any obligation to furnish the person with any further information.   Recipients of this  press  release  should  make  their  own  independent  assessment  and  determination  as  to  the  Company’s prospects, its business, assets and liabilities as well as the matters covered in this press release.

Forward‐looking statements
Certain statements  contained  in this press release, including  information  as to the future financial or operating performance of Cardinal and its projects may also include statements which are ‘forward‐looking  statements’ that may include, amongst other things, statements  regarding targets, anticipated  timing of the feasibility study (FS) on the Namdini project, estimates and assumptions  in respect of mineral resources and anticipated  grades and recovery rates, production and prices, recovery costs and results, capital expenditures and are or may be based on assumptions  and estimates related to future technical,  economic,  market, political, social and other conditions. These ‘forward – looking statements’  are necessarily  based upon a number of estimates  and assumptions  that, while considered reasonable by Cardinal, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies and involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward‐looking  statements.

Cardinal disclaims any intent or obligation to update publicly or release any revisions to any forward‐looking statements,  whether  as a result of new information,  future events, circumstances  or results or otherwise  after today’s date or to reflect the occurrence of unanticipated events, other than required by the Corporations Act and ASX and TSX Listing  Rules.   The words  ‘believe’,  ‘expect’,  ‘anticipate’,  ‘indicate’,  ‘contemplate’,  ‘target’,  ‘plan’, ‘intends’, ‘continue’, ‘budget’, ‘estimate’, ‘may’, ‘will’, ‘schedule’ and similar expressions identify forward‐looking statements.

All forward‐looking statements  made in this press release are qualified by the foregoing cautionary  statements. Investors are cautioned that  forward‐looking   statements   are  not  guarantees   of  future  performance and accordingly investors are cautioned not to put undue reliance on forward‐looking  statements due to the inherent uncertainty therein.

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