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Cardinal Resources shares jump after securing environmental permit for Namdini Gold Project in Ghana

Based on the current gold price, Namdini Gold Project has a pre-tax net present value of at least US$1.44 billion based on feasibility study assumptions.

Cardinal Resources Ltd - Cardinal Resources shares jump after securing environmental permit for Namdini Gold Project in Ghana
Cardinal shares closed about 14% higher at 40.5 cents

Cardinal Resources Ltd (ASX:CDV) (TSE:CDV) has been granted the permit for the development of its Namdini Gold Project by the Ghanaian Environmental Protection Agency, who has approved the company’s Environmental Impact Statement.

The approval has been secured during a time of strengthening gold prices which will have a positive impact on project economics.

Following the release of the Namdini Gold Project feasibility study in late 2019, the gold price has traded within a range of US$1,452 to US$1,757 per ounce.

The feasibility study evaluated the Namdini project outcomes at a gold price of US$1,350 per ounce, but also presented gold price sensitivities from US$1,150 per ounce and up to US$1,550 per ounce.

Namdini Project feasibility study outcomes

Based on the current gold price, Namdini Gold Project has a pre-tax net present value of at least US$1.44 billion based on feasibility study assumptions.

It is worth noting that Namdini has a gold ore reserve of 5.1 million ounces (138.6 million tonnes at 1.13 g/t gold), inclusive of 0.4 million ounces proved and 4.7 million ounces probable.

COVID‐19

There have been no confirmed cases of COVID‐19 at any of Cardinal’s sites or offices and a comprehensive response plan is in place to ensure the protection of the company’s staff and contractors.  

All international travel into Ghana remains suspended, while on the ground in Ghana, the workforce has been reduced to key personnel only.  

Work from home operating procedures have been established where possible while site‐based staff continue to operate in limited capacities.

Although fieldwork has been scaled back, the Namdini Project Team is still actively working on adding value to the project.

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ASX:CDV
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Market Cap: $310.35 m
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Full interview: Cardinal Resources delivers Namdini gold feasibility study...

Cardinal Resources Ltd (ASX:CDV) chief executive officer and managing director Archie Koimtsidis updates Proactive on delivering a pleasing feasibility study for the Namdini Gold Project in Ghana, West Africa which confirms it as a tier-one gold project. The CEO said the FS demonstrates a...

on 13/11/19

2 min read