Networking by Australian companies developing projects in Africa got underway a day early yesterday at an event in Perth.
Cardinal Resources Ltd (ASX:CDV) (TSE:CDV) (FRA:C3L) managing director and CEO Archie Koimtsidis spoke at the Cannings Purple Investor Insight West African Special Event about the company’s 6.5 million ounce Namdini project in Ghana and its upcoming pre-feasibility study (PFS).
Both leaders spoke to investors, mining industry professional and journalists at the event and will also present at the three-day Africa Down Under Conference Perth over the next two days.
A worker gathers samples at Cardinal’s Ndongo East prospect.
Cardinal has big asset with low IRR
Cardinal is just weeks away from releasing a PFS for Namdini.
A previous preliminary economic assessment (PEA) envisaged capital costs of US$275-426 million, depending on throughput, a post-tax net present value of $445-649 million, using a 5% discount rate, and an internal rate of return of 31-44%.
The PEA was based on an indicated resource of 3.3 million ounces, which has grown to 6.5 million.
"If this appealed to you, wait until you see the PFS because it's based off a bigger resource," Koimtsidis said.
The PFS will include a maiden reserve, with Koimtsidis expecting above average conversion rate of the indicated resource.
"70% conversion of 6.5 million ounces has a four in front of it," he said.
Koimtsidis said the release of the PFS could be the catalyst for Cardinal to receive a "tap on the shoulder", stating that many bigger players needed a PFS before they could take it to their committees.
Namdini is a small part of the company's 900 square kilometre landholding near the Burkina Faso border.
Today, Cardinal revealed it had extended the strike length by 800 metres or 200% to 1.2 kilometres at the Ndongo East discovery.
The company reported further shallow gold intersections from exploration drilling following the discovery last month at Ndongo licence.
Highlight intersections included 2 metres at 27 g/t gold from 10 metres, 6 metres at 12.6 g/t from 2 metres and 7 metres at 2.2 g/t from 55 metres.
Koimtsidis told the market: “We are increasingly encouraged at how Ndongo East is evolving with the potential to add high-grade gold ounces to our Namdini project only 20 kilometres to the south.”
The company is set on growing the tier-one asset and has received a 15-year renewable licence, conditional on an environmental permitting process this year.
The company is tri-listed on the Toronto Stock Exchange and follows TSX reporting rules, only reporting the resources contained in the stage I and life-of-mine pit areas.
Cardinal’s mineralisation extends 1,150 metres over the pits, and then along strike and to depth.
The company has assessed the economic cost of three scenarios it shared yesterday — operations that produced 4.5, 7 or 9.5 million tonnes a year.
Golden Rim focuses on Burkina Faso upside
Golden Rim managing director Mackay emphasised the quality of the flagship Kouri Gold Project and the strong support mining received in Burkina Faso.
Mackay said the project featured upside for investors, with many of the gold lodes being open along strike at the mineral resource.
There are also parallel gold lodes with induced polarisation chargeability.
The company believes there is potential for new gold lodes to be discovered outside the resource, citing a recent find 100 metres south of the resource where one hole returned 6 metres at 25.2 g/t gold and another 3 metres at 9.3 g/t gold.
Golden Rim’s 20.8 million tonnes indicated and inferred mineral resources at Kouri are graded at 1.5 g/t gold at a 0.5 g/t cut-off to contain 1 million ounces.
The mineral resource near the town of Piela extends 3.2 kilometres from the surface until a 90-metre depth.
Forty-two holes have been drilled since the company’s mineral resource statement, with results likely to increase the size of the open-pittable resource.
Golden Rim has 95.5% total recovery over all ore types, with fresh ore having recoveries of up to 99.6%.
The average gravity recovery is 36%, although it has achieved a high of 68%.
Golden Rim believes the resource has bulk mining potential, after achieving highlight results such as 136 metres at 1.1 g/t from zero metres and 124 metres at 0.9 g/t gold from 18 metres.
The Babonga project is another wholly-owned company project in the country and drilling has produced results such as 7 metres at 1.6 g/t from 28 metres.
Mackay highlighted the fast-growing gold destination Burkina Faso was a supportive jurisdiction with a modern mining code.
Ten new gold mines have been opened in the country in the past 12 years.