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Cardinal Resources to deliver Namdini gold feasibility study this month

Published: 08:53 01 Oct 2019 AEST

Cardinal Resources Ltd - Cardinal Resources to deliver Namdini gold feasibility study this month
The Ghanaian project hosts a 5.1-million-ounce gold reserve

Cardinal Resources Ltd (ASX:CDV) (TSE:CDV) is on track to deliver the feasibility study this month for the at Namdini Gold Project in Ghana, which hosts a 5.1 million-ounce ore reserve.

The study is progressing well with the company having received the awaited Maelgwyn (AachenTM) laboratory data.

With the study in its final stages, study consultants, technical committee, legal, ASX and TSX compliance reviews are in progress.

The feasibility study examines the proposed construction of a 9.5 million tonnes per annum processing plant at the flagship Namdini project in the country’s north.

Decision to mine by end of year

Cardinal, which has a market cap of around $174.4 million, expects to make a final decision to mine at the project by the end of the year.

The company’s managing director and CEO Archie Koimtsidis previously said that Cardinal was pleased to be working with a supportive and proactive government in a country that was now Africa’s largest gold producer.

Namdini has an ore reserve of 138.6 million tonnes at 1.13 g/t gold from 5.1 million ounces, with a 0.5 g/t cut-off.

This includes a proved reserve of 7.4 million tonnes at 1.31 g/t for 400,000 ounces and a probable reserve of 131.2 million tonnes at 1.12 g/t for 4.7 million ounces.

PFS demonstrates robust nature

A pre-feasibility study, which provided a strong body of work for the feasibility study, demonstrated the robust nature of the project.

The new study is factoring in an optimisation study to ensure the optimal stage I pit design to accelerate capital payback and maximise returns.

In the PFS the future Namdini operation was valued at US$586 million post-tax using a 5% discount and assuming a gold price of US$1,250.

Notably, using a gold price of US$1,350 would increase the valuation by nearly 30% to US$758, or over A$1 billion.

Ongoing exploration is providing strong results with the potential to add to the gold resources and reserves.

Cardinal last traded at 42.5 cents and early last month reached a new 12-month high of 54.5 cents.

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