Cardinal Resources Limited (ASX/TSX: CDV) (“Cardinal” or “the Company” - https://www.commodity-tv.net/c/search_adv/?v=299176 ) is pleased to report positive results from a selected area within the proposed starter pit that encompasses the first 2 to 3 years of production at its flagship Namdini Gold Project in Ghana. The infill drill programme results highlight the robustness of the Company’s current Mineral Resource and further supports the Company’s Project Finance plans.
HIGHLIGHTS
- Infill drilling tested down to the base of the proposed starter pit to a vertical depth of 140m
Selected in fill drill hole intersections: |
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Intersections are reported above 0.5 g/t Au using a minimum width of 3m, with no more than 3m of internal dilution of less than 0.5 g/t Au.
Cardinal’s Chief Executive Officer / Managing Director, Archie Koimtsidis said:
“This close spaced infill drill programme, along with the previous Grade Control* programme within our proposed starter pit, confirms the robustness of our Mineral Resource, thereby providing higher confidence in predicting operational outcomes.
“The infill results are also key to underpinning the delivery of a high-quality engineering study which will provide more informed economic data during the critical project finance payback period.
“An added benefit of these infill drill results is enhancing confidence in the first 2 to 3 years production from the proposed starter pit. This will assist Cardinal with project financing options for the Namdini Project with a declared open pit 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).”
* Refer to ASX/TSX press release “Cardinal Grade Control Drill Results Returned” dated 12 December 2017.
Infill Drilling
Cardinal completed a 3,640m Reverse Circulation percussion and Diamond core test infill drill programme which comprised 30 drill holes infilling earlier drilling to a grid pattern of approximately 25m (E) by 25m (N), within the proposed starter pit. The drill programme comprised three 25 metre spaced traverses with an area of approximately 300m (E) by 75m (N) to approximately 140m vertical (Figure 1). Drilling was inclined at around -65° to the east in the Namdini local grid, consistent with drilling undertaken for previous mineral resource (Figures 2, 3 and 4). Detailed results of the drill programme are provided in Schedule 1 to this announcement.
The close spaced infill drill pattern has demonstrated continuity of mineralised zones within this infill drilling area. The results provide another layer of confidence that the spatial distribution and tenor of gold within this test area are in line with the Namdini Mineral Resource expectations.
Drilling, Sampling, Sub-sampling, and Sample Analysis methods:
Reverse circulation percussion drilling (nominally 130mm i.e. 5¼ inch diameter) was usually 200m or less in depth. All reverse circulation holes were down-hole surveyed at 30m intervals.
Diamond core drilling was HQ in size in both weathered and fresh rock. All diamond holes were surveyed down-hole at 30m intervals. All HQ core was orientated.
The infill drilling comprised east-west trending traverses of easterly inclined holes. Hole spacing was approximately 25m by 25m.
All reverse circulation samples were collected at the drill site over 1m intervals and split using a multi-stage riffle splitter.
Diamond core was generally longitudinally sawn in half; with half sent for assaying, and half retained in core trays for future reference. One metre samples were taken and submitted to an independent laboratory for assaying. At the laboratory, both core and reverse circulation samples followed a standard procedure of drying, jaw crushing and pulverising by ring mill. The pulverised samples were thoroughly mixed (‘mat-rolled’) and then 200g of sub-sample was collected. Internal laboratory checks required at least 90% of the pulp passing 75µm. A 50g charge was produced for subsequent fire assay.
Very good recovery of both core and reverse circulation samples (>95%) were recorded and they are considered to be representative of the mineralisation defined by the drilling.
Cardinal used two laboratories for its sample submissions, SGS Ouagadougou Laboratory in Burkina Faso and SGS Tarkwa Laboratory in Ghana. The independent SGS commercial geochemical analytical laboratories are officially recognized by the South African National Accreditation System (SANAS) as meeting the requirements of the ISO/IEC 17025 standard for specific registered tests for the Minerals Industry.
As part of the Cardinal QAQC program, a suite of internationally accredited and certified reference materials (‘standards’) and locally sourced blanks were included in the sample submission sequence. The standards covered gold grade ranges expected at Namdini. Interlaboratory umpire analyses were also conducted. The sampling, sample preparation and analysis processes were found to be appropriate and acceptable for Mineral Resource estimation
Certified reference material (blanks and standards) were submitted into the sample stream at a rate of 1 in 20 samples. Duplicate samples of reverse circulation chips were taken at a rate of 1 in 22.
No employee, officer, director, or associate of Cardinal carried out any sample preparation on samples from the Namdini Project exploration programme. Drill core was transported from the drill site by a Cardinal vehicle to the secure core yard facility at the Bolgatanga Field Exploration Office.
All samples collected for assaying were retained in a locked, secure storage facility until collected and transported by the SGS laboratory personnel. Retained drill core was securely stored in the core storage facility and pulps and coarse rejects returned from the laboratories were securely stored in the exploration core logging area and at a nearby secure location in Bolgatanga, Ghana.
Drill hole collars were surveyed using differential GPS (DGPS), with most diamond holes and deeper RC holes down hole surveyed at intervals of generally around 30m using electronic multi-shot and gyroscopic equipment. The drilling at Namdini is considered to have been surveyed with sufficient accuracy for current estimates.
Cut-off grade(s) including the basis for the selected cut-off grade:
An estimated marginal cut-off grade was established at 0.5 g/t Au using an assumed long-term gold price of US$1,300/oz. The provided Mineral Resource was validated and used to develop a mining model, as the basis for a LOM plan and economic assessment.
Gold royalties were assumed at 5% of gold price, with payable gold estimated at 99.8% of doré exported. The net gold price was thus US$39.67 /g. The input processing cost provided in the ASX and TSX announcement on 18 April 2019 was US$14.30/t plus an additional US$1.50 /t allowed for stockpile reclaim giving a total of US$15.80 /t of mill feed (as dry tonnes). The tested overall process recovery utilised was 82%. Thus, the marginal cut-off grade (‘COG’) is estimated as: process cost / (net gold price * process recovery) giving 0.5 g/t Au (to one significant figure).
Using this marginal COG, the proportion of ore and the gold grade above the COG were defined in the mining model. The parcelled proportions of ore above COG within the blocks were then exported for open pit optimisation. The 0.5 g/t Au COG approximates an operational parameter that the Company believes to be applicable. This is in accordance with the guidelines of Reasonable Prospects for Eventual Economic Extraction in CIM and the JORC Code.
Mining and Metallurgical Methods and Parameters and other modifying factors considered to date:
Metallurgical testwork continued to focus on development of on the same flowsheet as presented in Cardinal’s PFS study (ASX/TSX 18 September 2019). The flowsheet is described as a conventional primary crush, SABC, flotation, regrind and carbon-in-leach circuit.
The metallurgical testwork on fresh material was carried out by ALS Laboratory in Perth, Australia and at the Maelgwyn Laboratory in Johannesburg, South Africa. Positive leach results were returned from the Maelgwyn Mineral Services Africa (MMSA) metallurgical Laboratories in South Africa from pilot scale testwork utilising the AachenTM Shear Reactor (ASX/TSX Press Release dated 4 June 2019). AachenTM is a relatively simple, proven process being used several global gold producers and specifically in Africa. These operations have consistently demonstrated an uplift in gold recovery with AachenTM.
Mining costs were developed from first principles and a profit factor applied to estimate contract mining cost. The estimated base mining cost has an applied incremental cost with depth, to account for increased haulage costs and the depth of mining increases in line with standard mining cost principles. All costs have been determined on a US dollar (“US$”) basis. Mining will be conducted by a mining contractor which would bear the total mining capital cost under an outsourced mining arrangement, with the costs recovered by the mining contractor on a cost per tonne mined basis.
Figure 1: Plan View of Namdini deposit showing drill hole locations and interpreted geology
Figure 2: Cross Section showing down hole mineralised intersections of infill holes
Figure 3: Cross Section showing down hole mineralised intersections of infill holes
Figure 4: Cross Section showing down hole mineralised intersections of infill holes
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), and a soon to be completed Feasibility Study.
Exploration programmes are also underway at the Company’s Bolgatanga (Northern Ghana) and Subranum (Southern Ghana) Projects.
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. All material assumptions and technical parameters underpinning this estimate continue to apply and have not materially changed.
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
Andrew Rowell Peta Baldwin
Cannings Purple Cannings Purple
E: [email protected] E: [email protected]
P: +61 400 466 226 P: +61 455 081 008
In Europe:
Swiss Resource Capital AG
Jochen Staiger
[email protected]
www.resource-capital.ch
Competent Person’s / Qualified Person’s Statement
The information in this press release that relates to Exploration Targets, Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by Mr. Richard Bray, a Competent Person (Qualified Person) who is a Registered Professional Geologist with the Australian Institute of Geoscientists. Mr. Bray has 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 as defined by the NI43-101 instrument. Mr. Bray is a full-time employee of Cardinal and holds equity securities in the Company. Mr. Bray has consented to the inclusion of the matters in this report based on the information in the form and context in which it appears.
The information in this press release that relates to Exploration Targets, Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by Mr. Ekow Taylor, a Competent Person (Qualified Person) who is a Chartered Professional Geologist with the Australasian Institute of Mining and Metallurgy. Mr. Ekow Taylor has 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 as defined by the NI43-101 instrument. Mr. Taylor is a full-time employee of Cardinal and holds equity securities in the Company. Mr. Taylor has consented to the inclusion of the matters in this report based on the information in the form and context in which it appears.
Both Mr Bray and Mr Taylor have worked on the Exploration at the Namdini Gold Project collaboratively and are jointly and severely responsible for the Exploration Results.
ASX Listing Rule 5.23.2
This report contains information extracted from the following reports which are available for viewing on the Company’s website www.cardinalresources.com.au :
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- 04 June 2019 Positive Metallurgical Update on Namdini Project
- 18 April 2019 Addendum to Namdini Ore Reserves Press Release
- 10 April 2019 Feasibility Study & Project Finance Update
- 03 April 2019 Cardinal’s Namdini Ore Reserve Now 5.1Moz
- 26 October 2018 Technical Report on Namdini Gold Project Filed on Sedar
- 18 September 2018 Cardinal Namdini Pre-Feasibility Study 4.76Moz Ore Reserve
- 12 December 2017 Cardinal Grade Control Drill Results Returned
The Company confirms it is not aware of any new information or data that materially affects the information included in this report relating to exploration activities and all material assumptions and technical parameters underpinning the exploration activities in those market announcements continue to apply and have not been changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements. 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. All material assumptions and technical parameters underpinning this estimate continue to apply and have not materially changed.
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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