Cardinal Company Update
TORONTO, May 04, 2020 (GLOBE NEWSWIRE) — Cardinal Resources Limited (ASX / TSX : CDV) (“Cardinal” or “the Company”) is pleased to provide an update in relation to the development of its 5.1Moz* Namdini Gold Project in Ghana, West Africa.HIGHLIGHTSGhanaian Environmental Protection Agency (“EPA”) approves Cardinal’s Environmental Impact Statement (“EIS”), granting its Permit for development of the Namdini Gold Project
Positive impact of strengthened gold price on project economics
COVID-19 protective measures in placePROJECT PERMITS AND APPROVAL STATUSJuly 2018 – Environmental Impact Statement (EIS) development and documentation process initiated December 2019 – Cardinal submitted its Draft EIS for development of the Namdini Project with Ghanaian EPA January 2020 – Ghanaian Environmental Protection Agency (EPA) completed its review of the Draft Environmental Impact Statement (EIS) for the development of the Namdini Project. The EIS was revised as needed and re-submitted in March 2020February 2020 – Relocation Action Plan (RAP) was approved. The RAP was developed over an extended period, inclusive of extensive consultation with the Project Affected People (PAP) and several levels of the Government. It was signed off by all PAP and subsequently approved by the Ghanaian Minerals Commission February 2020 – Water License was granted. Permits the use of water for construction and mine operations purposesApril 2020 – Ghanaian EPA approves Cardinal’s EIS, granting its Permit for the development of the Namdini Gold ProjectPROJECT FLY-THROUGHThe Company has completed a project fly-through at Namdini, this can be viewed on the Company’s website at www.cardinalresources.com.au.PROJECT ECONOMIC OUTCOMESFollowing release of the Feasibility Study and accompanying NI43-101 Technical Report (ASX/TSX Press Release dated 28 October and 28 November 2019 respectively) the gold price has traded within the range of USD$1,452 to USD$1,757 per ounce.The Feasibility Study evaluated the Namdini project outcomes at a gold price of USD$1,350 per ounce, but also presented gold price sensitivities from USD$1,150 per ounce and up to USD$1,550 per ounce which Cardinal has set out in Table 1.
Table 1 – Namdini Project Feasibility Study Outcomes (ASX/TSX Press Release dated 28 October and 28 November 2019 respectively)The forecast financial information set out above in Table 1 was initially contained in Cardinal’s Feasibility Study (refer Cardinal’s ASX Announcement (ASX:CDV) of 28 October 2019 titled “Feasibility Study Confirms Namdini as Tier One Gold Project”. Cardinal confirms that all the material assumptions underpinning the above forecast financial information in the Feasibility Study continue to apply and have not materially changed.CORPORATE ACTIVITYPlease refer to the company’s announcements of 16 March 2020 and 30 March 2020 in relation to the recent approach from Nord Gold. The Company continues to work with the Special Purpose Committee to review all strategic alternatives.COVID-19There have been no confirmed cases of COVID-19 at any of the Company’s sites or offices and a comprehensive response plan is in place to ensure the protection of our staff and contractors. The safety of our people, their families and the communities in which we operate are, and will always be Cardinal’s first priority. The challenges of COVID-19 are constantly changing and we remain flexible and united in our responses to maintain staff safety.All international travel into Ghana remains suspended, while on the ground in Ghana, the workforce has been reduced to key personnel only. Work from home operating procedures have been established where possible while site-based staff continue to operate in limited capacities. Although fieldwork has been scaled back, the Namdini Project Team is still actively working on adding value to the project.ABOUT CARDINALCardinal Resources Limited (ASX/TSX: CDV) is a West African gold‐focused exploration and development Company that holds interests in tenements within Ghana, West Africa.The Company is focused on the development of the Namdini Gold Project and released its Feasibility Study on October 28, 2019. The Company announced completion of the Feasibility Study (FS), which was released October 28, 2019. The technical report on the FS, prepared in accordance with NI 43‐101 of the Canadian Securities Administrators, was issued on SEDAR at www.sedar.com on November 28, 2019.Cardinal confirms that it is not aware of any new information or data that materially affects the information included in its announcement of the Ore Reserve of October 15, 2019, and included in in the Company’s completed Feasibility dated October 28, 2019 and the information on the drill results noted in this announcement. All material assumptions and technical parameters underpinning this estimate continue to apply and have not materially changed.*The Namdini Project has a published gold Ore Reserve of 5.1 Moz (138.6 Mt @ 1.13 g/t Au; 0.5 g/t cut-off), inclusive of 0.4 Moz Proved (7.4 Mt @ 1.31 g/t Au; 0.5 g/t cut-off) and 4.7 Moz Probable (131.2 Mt @ 1.12 g/t Au; 0.5 g/t cut-off).Authorised for release by the Board of Cardinal Resources Limited.ASX Listing Rule 5.23.2
This report contains information extracted from the following reports which are available for viewing on the Company’s website www.cardinalresources.com.au: