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Cardinal Resources Ltd

Cardinal Resources on track with Namdini Gold Project feasibility study

The company expects to make a final decision to mine at the Ghanaian project by the end of the year.

Melbourne CEO Session
CEO and MD Archie Koimtsidis addresses a Proactive CEO Session this week

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

The study is well advanced and will put the company in a position to make a final decision to mine by the end of the year.

Cardinal’s CEO and managing director Archie Koimtsidis addressed investors at this week’s Proactive CEO Sessions in Sydney and Melbourne.

READ: Cardinal Resources drilling confirms high-grade gold from proposed starter pit area in Ghana

He said while the study was being carried out, the company was also working on financials and expected no major stumbling blocks in this process.

The company, which has a market cap of around $153 million, was also pleased to be working with a supportive and proactive government in a country that was now Africa’s largest gold producer.

A pre-feasibility study (PFS) has already demonstrated the robust nature of the Namdini project and provided a strong body of work for the feasibility study.

The new study will factor an optimisation study recently undertaken on the Namdini ore reserve to ensure the optimal stage I pit design to accelerate capital payback and maximise returns for shareholders.

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 potential to add to the gold resources and reserves.

Most recently infill drilling at the proposed starter pit highlighted the robustness of the resource. strengthening the financing case.

READ: Cardinal Resources intersects further high-grade gold within hauling distance of ore reserve at Namdini

Regional drilling has also been returning high-grade results from areas within hauling distance of the Namdini reserve.

Koimtsidis told investors that the company’s Ghanaian story had impressed a number of brokers with recent research reports resulting in an average price target of A$1.08.

Cardinal shares were up almost 6% to an intra-day high of 36 cents and are up 20% since July 10.

Read the company’s latest presentation here

Quick facts: Cardinal Resources Ltd

Price: $0.48

Market: ASX
Market Cap: $194.94 m
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Cardinal Resources recognised for Namdini gold discovery with Thayer...

Cardinal Resources Ltd (ASX:CDV) managing director & CEO Archie Koimtsidis speaks to Proactive Investors about winning the 2019 Thayer Lindsley award from the Prospectors and Developers Association of Canada (PDAC). The award, previously won by Barrick Gold (TSE:ABX) and Ivanhoe...

on 03/20/2019

3 min read