Quarterly Activities for the Period Ended 30 September 2019
TORONTO, Nov. 01, 2019 (GLOBE NEWSWIRE) — Cardinal Resources Limited (ASX: CDV; TSX: CDV) (“Cardinal” or “the Company”) a Ghana gold focused exploration and development company, is pleased to present its Quarterly activities report for the period ended 30 September 2019.
HIGHLIGHTSOn July 10, 2019 the Company announced further intersections of shallow, high-grade gold mineralisation from diamond drill programme at the new Ndongo East discovery, located approximately 24km north of the Namdini Gold Project in Ghana, West Africa.On July 12, 2019 the Company held a successful Public Hearing and Presentation for Traditional Paramount Chief which demonstrated strong local support for the Namdini Gold Project.On July 16, 2019 the Company announced positive results from infill drilling testing of a selected area within the proposed starter pit that encompasses the first 2 to 3 years production at its flagship Namdini Gold Project, which provided another layer of confidence that the spatial distribution and tenor of gold within the test area are in line with the Mineral Resource expectations.On September 4, 2019 the Company announced a key appointment of Mr. David Anthony to the position of Chief Operating Officer ahead of its Namdini Gold Project development in Ghana, West Africa.On September 30, 2019 the Company announced its Feasibility Study status in reference to its announcement of June 4, 2019 in relation to its proposed Feasibility Study release scheduled for Q3, 2019. Having received the awaited Maelgwyn (AachenTM) laboratory data, the Company released its Feasibility Study on October 28, 2019.OUTLOOKThe principal activity of the Company is gold exploration and mine development in Ghana. The Company holds tenements prospective for gold mineralisation in Ghana in two granite-greenstone belts: the Bolgatanga Project and the Namdini Gold Project (“Namdini Gold Project” or “Namdini”), which are, respectively, located within the Greenstone Belts in northeast Ghana and the Subranum Project, which is located within the Sefwi Greenstone Belt in southwest Ghana.The main focus of activity is the Namdini Gold Project which has a gold Ore Reserve of 5.1 Moz (138.6Mt @ 1.13g/t Au; 0.5g/t Au cut-off) inclusive of 0.4 Moz Proved (7.4 Mt @ 1.31g/t Au; 0.5 g/t Au cut-off) and 4.7 Moz Probable (131.2 Mt @ 1.12 g/t Au; 0.5g/t Au cut-off).Figure 1: Cardinal Resources Tenements in Ghana:
https://www.globenewswire.com/NewsRoom/AttachmentNg/e67159fc-3512-4b5b-b11f-da6ed35de554 Subsequent to end of QuarterOn October 3, 2019 the Company announced that it successfully raised $17.6M through exercise of listed options.
A total of 117,398,958 of the Listed Options were exercised, being 99.84% of the Listed Options on issue, raising approximately $17.6 million in cash proceeds. Only 188,081 Listed Options expired unexercised.On October 28, 2019 the Company released its Feasibility Study confirming the Namdini Project as a tier one gold project. THE NAMDINI GOLD PROJECTProperty Title / Mining LeaseA Large-Scale Mining License covering the Namdini Mining Lease was granted to Cardinal Namdini Mining Limited (“Cardinal Namdini”), a wholly owned subsidiary of Cardinal, by the Minister of Lands and Natural Resources under the Ghanaian Minerals and Mining Act 2006 (Act 703) in December 2017. The Large-Scale Mining License covers 19.54 km2 in the Dakoto area of the Talensi District Assembly in Upper East Region of Ghana evidenced by a Mining Lease for an initial period of 15 years and is renewable.Project Development and Finance UpdateProject Finance Adviser, Cutfield Freeman & Co, continues to work closely with Cardinal to ensure that Cardinal is well positioned to execute project finance for the Namdini Gold Project as swiftly as possible following completion and release of the Feasibility Study, which was released on October 28, 2019.The company has received substantial interest from a range of potential financiers, providing the Company with a high level of confidence that it will be able to secure the necessary project funding package on favourable terms.Cardinal’s Project Finance team continues to evaluate Indicative Term Sheets from a number of project financiers including traditional senior debt lenders.Project Development PartnersTable 4: Study TeamProject Metallurgical Update