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Cardinal Resources Ltd receives shareholder support for Ghana gold project

After receiving shareholder approval for the second tranche of the placement, Cardinal remains on track to deliver a maiden JORC Exploration Target this quarter.

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Cardinal Resources Ltd (ASX:CDV) has received the necessary shareholder approval to issue the second tranche of shares in its recent $21.75 million placement.

The company recently completed its Phase 1 framework drilling program at the emerging, world class Namdini gold deposit in Ghana.

Drilling at Namdini has identified a mineralised gold zone with a strike length of 1,000 metres, widths of 200-300 metres and depths of over 350 metres.

Archie Koimtsidis, managing director, commented: “We are very pleased with the strong level of support from new and existing shareholders who recognise the significant potential of our projects.
 
“We are pleased that the tremendous potential of our Ghanaian projects is increasingly being recognised by a range of sophisticated investors.”


Placement details


Cardinal recently completed a share placement raising $21.75 million through the issue of 75 million shares at $0.29 per share.

The placement consisted of two tranches, with the second tranche requiring shareholder approval as per standard procedure.

Funds will be focused on defining a maiden resource at the company’s flagship Namdini Gold Project in Ghana.

The placement has introduced two new cornerstone investors, Precious Capital Global Mining and Metals Fund and Colonial First Stage Growth Equites.


Background


Cardinal has made a world class gold discovery at the Namdini Gold Project located in the west African country of Ghana.

Every hole drilled at Namdini since discovery has intersected wide zones of gold mineralisation including:

- 67 metres at 3.1 g/t from 3 metres;
- 51 metres at 3.58 g/t from 85 metres; and
- 45 metres at 7.73 g/t from 168 metres.

The recently completed raising will fully fund an active work program with the objective to define a maiden JORC Resource at Namdini in late 2016.


Most recent drill results


The recent Phase 1 framework drilling at Namdini consisted of a 20 hole program which has returned the highest grade intervals to date.

Highlights from the final round of framework drilling includes:

- 94 metres at 4.53 g/t gold;
- 97 metres at 1.62 g/t gold;
- 43 metres at 8.86 g/t gold;
- 40 metres at 2.01 g/t gold;
- 38 metres at 2.16 g/t gold; and
- 3 metres at 42.7 g/t gold.

Work has now begun on structural and geological modelling and resource estimation in order to complete an inaugural resource estimate for the Namdini gold deposit.


Analysis


After receiving shareholder approval for the second tranche of the placement, Cardinal remains on track to deliver a maiden JORC Exploration Target this quarter.

Namdini is a major new discovery, with gold mineralisation outlined over a one kilometre of strike, extending to over 350 metres below surface along a mineralised corridor that is consistently greater than 250-300 metres wide.

The orebody remains open at depth and to the south and encouraging exploration potential exists to the north.

The project located near power, water and sealed highway in a low density population area.

Cardinal The board and management are well invested in the company holding circa 8% of shares on issue.

The share price is up five-fold over the past year, with shares currently trading at $0.52.

 

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Quick facts: Cardinal Resources Ltd

Price: 0.42 AUD

ASX:CDV
Market: ASX
Market Cap: $210.01 m
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