Cardinal Resources Granted Namdini Expansion

THE BOURSE WHISPERER: Cardinal Resources (ASX: CDV) received approval to expand the current Mining Licence for the company’s Namdini gold project in Ghana.

Cardinal Resources’ subsidiary Cardinal Namdini Mining Limited was granted a Large‐Scale Mining License covering the Namdini Mining License by the Minister for Lands and Natural Resources under the Ghanaian Minerals and Mining Act 2006 (Act 703) in 2017.

The Large‐Scale Mining Licence originally covered 19 square kilometres in the Dakoto area of the Talensi District in the Upper East Region of Ghana that has now been expanded to 63sqkm with the grant covering an initial period of 15 years commencing in 2020 and is renewable.

Cardinal Resources said the expanded Large‐Scale Mining Licence allows it to optimise and de‐risk mine and infrastructure design and optimise financial outcomes as the company continues to progress the FEED program.

“It is most pleasing to have the Minister for Lands and Natural Resources and the Minerals Commission of Ghana support our Mining Licence area expansion,” Cardinal Resources chief executive officer / managing director Archie Koimtsidis said in the company’s announcement to the Australian Securities Exchange.

“The expansion aligns with the company’s plan to not only significantly optimise the location of key infrastructure such as tailings storage facilities, stockpiles and waste dumps but also to further explore financial benefits during the Front‐End Engineering and Design (FEED) of the Namdini project.

“Further, it allows the company to expand its exploration activities immediately south of Namdini which has great potential along the southern extension of the Namdini shear.”

Cardinal is preparing development of the Namdini gold project, subject to concluding project development financing.

Once developed, the company expects the Namdini gold project to produce over 360,000 ounces per annum for the first two years of operation and over the life of mine is expected to produce an average of 287,000 ounces per annum.

A Definitive Feasibility Study completed in late 2019, indicated encouraging economics, including a post‐tax NPV of over US$958 million which is capable of generating over US$1.55 billion in undiscounted project cashflow (assuming a gold price of US$1,550/oz).