Cardinal Resources Limited (ASX: CDV) announced a new estimate for its ore reserve at Namdini Gold Project (“Namdini”) in Ghana, West Africa. The upgraded position is estimated to be 5.1 million ounces, up from the previous estimate of 4.8 million ounces. This activity has augmented the Namdini gold deposit as one of the most significant undeveloped gold (Au) findings of the past decade.
The company’s CEO & MD, Archie Koimtsidis stated that they are fortunate to have a significantly higher grade portion under the life of mine ore reserve starting substantially at the surface which allowed them for a fast capital payback under the production of the first stage pit. It is anticipated that the first stage pit sees around 1 Mn oz of over an around 3 year at an anticipated lower strip ratio, as well as a higher average head grade of around 1.3 g/t Au based on a process plant throughput of 9.5 Mtpa.
Under the feasibility study which is expected to complete soon, they are confident that the optimised life of mine ore reserve will deliver strong financial results. The company is expected to leverage the project’s vast ore reserve, low strip ratio, high conversion of the mineral resource and rapid payback from the anticipated higher grade and lower strip ratio of the first stage pit, to access the attractive project finance to achieve the best outcome for the shareholders.
The 5.1 million ounces proved and probable ore reserve estimate from 138.6 Mt @ 1.13 g/t Au (0.5 g/t Au cut?off) comprised of:
- Oxide Ore Reserve with 4.1 Mt @ 1.11 g/t Au containing 0.2 million ounces of Gold
- Fresh Ore Reserve with 134.5 Mt @ 1.13 g/t Au containing 4.9 million ounces of Gold
The mineral resource incorporates the results from all the resource drilling to-date comprising 175 HQ diamond core holes and 151 RC drill holes totalling 87,140 meters. Reverse circulation drilling (nominally 5¼ inch diameter) was generally 200 meters or less in depth. Diamond drilling was HQ in both weathered and fresh rock. Holes and RC downhole surveyed at intervals of usually 30 meters. All HQ core was orientated. The resource drilling inclined holes. Hole spacing varied from around 12.5 by 25 meters in shallow portions of the southern part of the deposit to about 50 by 50 meters and broader in the north and at depth.
Various parameters involved concerning the mineral resource estimation are geological and structural modelling, survey control, bulk density data, resource estimation, variance adjustment, and constraining pit shell with reasonable prospects.
At the time of writing (April 3, 2019, AEST: 02:44 PM), the stock of Cardinal Resources is trading at $0.35, up 4.478%, with a market capitalisation of ~$128.15 million. Today, it made day’s high at $0.35 and same for day’s low with a daily volume of ~ 7,369 Its 52 weeks high is at $0.56 and 52 weeks low at $0.32 with an average volume of 155,274. Its absolute return for five years, one year, and six months are 679.07%, -39.64%, and -26.37%, respectively.
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