Cardinal Resources Limited (ASX: CDV), based in West Perth, Australia, is a metals and mining sector company engaged in the exploration of mineral properties in Ghana, West Africa. Its flagship property is the Namdini Gold project located in the Bolgatanga region.
On 10 April, the company announced an update on the headways achieved in the development of the Namdini Gold Project. Accordingly, the Feasibility Study is progressing rapidly and expected to be completed in this quarter, well ahead of its original scheduled completion of Q3 CY2019. This will mark a significant milestone for the project.
Lycopodium, a global mining services company, is the study manager for the project. With its extensive expertise in designing and building large scale mines, processing plants and related infrastructure in Africa and West Africa, Lycopodium is accelerating the full integration of all project disciplines and also coordinating the efforts of other study partners including Golder Associates and Knight Piésold.
The Feasibility Study will factor the recently completed optimisation study to ensure the optimal Stage 1 pit design to accelerate the capital payback and enhance shareholders’ returns.
The company previously updated the optimised Ore Reserve estimate for the Namdini Gold Project to 5.1 million ounces (Proved and Probable), higher than the previously stated 4.8 Moz. The life of Mine Strip Ratio is stated at 1.9: 1 and the Ore Reserve was estimated considering a gold price of USD 1300/ oz with USD 1,225/ oz optimised pit chosen for Ore Reserve pit design to maximise cash flow.
Cardinal’s Project Finance Advisor, Cutfield Freeman (London) and his team, are currently evaluating the Indicative term sheets for project finance, which have been submitted by banks and other project financiers, traditional senior debt lenders to possible corporate scenarios. With the strong interest from potential financiers, the company looks well positioned to secure an attractive funding package on favourable terms. Also, independent experts have been appointed to conduct due diligence and minimise delays with the same.
Meanwhile, the company’s exploration programmes are also advancing at the Bolgatanga and Subranum projects in Ghana.
For the six months to December 31st, 2018, Cardinal Resources’ reported a net loss of $ 5,621,705 and its total assets were valued at $ 32,098,054. The net cash and cash equivalents amounted to $ 29,174,605 at the end of the period.
On April 10th, 2019, the CDV stock price zoomed up by 13.89% to AUD 0.410 with 419,051 shares traded with the close of the market session. Today, 11 April, the stock is trading flat at AUD 0.410 (as at 12:16 PM AEST). The stock has generated a negative YTD return of 6.82% so far. However, its one -month return stands at 13.89%.
Cardinal Resources’ current market valuation stands at around AUD 156.83 million with ~382.52 million outstanding shares.
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