Cardinal Resources Ltd (ASX:CDV) has upgraded the ore reserve estimate for the Namdini Gold Project in Ghana, West Africa, to 5.1 million ounces, which reinforces the deposit as one of the largest undeveloped gold discoveries of the past decade.
The proved and probable ore reserve estimate is now 138.6 million tonnes at 1.13 g/t gold, an increase from the previous reserve of 4.8 million ounces.
Importantly, 80% of the 6.5-million-ounce measured and indicated mineral resource has been converted to proven and probable ore reserves.
Summary of Namdini’s proved and probable ore reserve estimate.
Cardinal’s managing director and CEO Archie Koimtsidis said the company was pleased that the optimisation of pit designs, wall angles and mining schedules had upgraded the life of mine ore reserve position to 5.1 million ounces.
"Rapid capital payback" from First Stage Pit
“We’re very fortunate to have a significant higher grade portion within the life of mine ore reserve starting essentially at surface. This allows for a rapid capital payback during production of the First Stage Pit.
"It is anticipated that the First Stage Pit will see approximately 1 million ounces of gold produced over an approximate three-year period at an expected lower strip ratio and a higher average head grade of approximately 1.3 g/t gold based on a process plant throughput of 9.5 Million tonnes per annum.
“We are confident that this optimised life of mine ore reserve, can deliver strengthened financial results within the feasibility study which is rapidly advancing to completion.
"Given the project's large ore reserve, low strip ratio, high conversion of the resource and rapid payback from the anticipated higher grade, lower strip ratio of the First Stage Pit, it is expected the company will have access to attractive project finance to achieve the best outcome for shareholders.”
Namdini's mineral resource estimate incorporates results from resource drilling comprising 175 HQ diamond core holes and 151 reverse circulation drill holes totalling 87,140 metres.
The mine design and ore reserve estimate is based on the revised mineral resource model.
Mining of the Namdini project will use conventional open pit mining equipment while the mining process will include drill and blast as well as conventional load and haul operations.
There is expected to be a limited amount of free-dig material with the majority of material assumed to require drilling and blasting.
Mining will be carried out using staged cutbacks with four identified stages incorporated within the LOM final pit.
The mining schedule incorporates movement of ore and waste on 10-metre mining benches, by year for each of the four mining stages.
Oxide ore will be stockpiled and fed into the process plant towards the end of the mine life.