On October 28, 2019, the company released its feasibility study confirming Namdini as a tier-1 gold project.
As a result of the positive study outcome, the Cardinal board has approved initiatives which are aimed at further de‐risking the project.
These include the immediate advancement of the project to the front-end engineering design (FEED) and early works construction stages, plus advancement of the relocation action plan - subject to final project finance.
5.1 million-ounce reserve
The company also announced its annual ore reserves and mineral resources statement in October, with the Namdini gold ore reserve of 138.6 million tonnes at 1.13 g/t at a 0.5 g/t cut‐off for 5.1 million ounces.
This is inclusive of 400,000 ounces in the proved category and 4.7 million ounces of probable reserves.
Optimisation through exploration
In conjunction with moving the project toward a financial investment decision, work continues on further project optimisation with project partners and regional exploration.
Cardinal has around 900 square kilometres of prospective exploration tenure within hauling distance of the proposed Namdini gold production plant, which remains a short‐term opportunity for project enhancement.
Exploration activities, including drilling, will recommence shortly at the company’s Bolgatanga (Northern Ghana) and Subranum (Southern Ghana) projects with the aim of identifying shallow, high-grade deposits that can enrich existing Namdini ore to further enhance the project economics.
Test work supports economics
Metallurgical tests carried out to date indicates that gold can be recovered from Namdini transition and fresh ore feed using conventional flotation, regrind and carbon in leach (CIL) cyanidation techniques, and from oxide ore feed using conventional CIL cyanidation techniques.
The test work demonstrated improved project economics by allowing a coarser re‐grind whilst maintaining similar recovery figures than reported in Cardinal’s PFS.
Cardinal considers the work sufficient to define a technically and economically viable gold mining project.
Cardinal believes there is potential for further improvements in the project economics which will form the basis of ongoing evaluation work, including:
- FEED and PEP programs incorporating a mine and schedule optimisation plan by Whittle Consulting;
- OPEX savings by evaluating a flotation cleaner circuit with the potential to reduce required regrind power;
- Additional mineral resources that are not part of the current ore reserves which represent lateral strike and depth extensions to the current life-of-mine pit design at US$1,235/ounce; and
- The regional land package may also have potential to define satellite pits with close to Namdini with drill testing new zones of high‐grade gold mineralisation to define satellite pits recommencing soon.
Strong financial outlook
In October, the company raised A$17.6 million through exercise of the company’s listed options (ASX:CDVOA).
A total of more than 117 million options were exercised, being 99.84% of the listed options on issue.
Company directors Archie Koimtsidis, Malik Easah and Kevin Tomlinson exercised all their listed options in the company, totalling approximately A$1.67 million.
Cardinal notes that, with the release of the feasibility study and accompanying NI43‐101 technical report in November, additional banks, financiers and corporates have shown interest in project finance participation and have been granted access to the data room.
In the meantime, the company remains in a strong financial position with cash reserves of around A$20 million.