Quarterly Activities for the Period Ended 31 December 2019

Quarterly Activities for the Period Ended 31 December 2019

TORONTO, Jan. 31, 2020 (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 December 31, 2019.
HIGHLIGHTSOn October 3, 2019 the Company announced that it successfully raised $17.6M through exercise of the Company’s Listed Options (ASX: CDVOA).A total of 117,398,958 Listed Options were exercised, being 99.84% of the Listed Options on issue, only 188,081 Listed Options expired unexercised.On October 15, 2019 the Company announced its annual Ore Reserves and Mineral Resources statement.On October 28, 2019 the Company released its Feasibility Study confirming the Namdini Project as a tier one gold project. On November 28, 2019 Cardinal released its Feasibility Study NI 43-101 Technical Report.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 5.1Moz (138.6Mt @ 1.13g/t Au; 0.5g/t Au cut-off) inclusive of 0.4 Moz Proved (7.4Mt @ 1.31g/t Au; 0.5 g/t Au cut-off) and 4.7Moz Probable (131.2Mt @ 1.12 g/t Au; 0.5g/t Au cut-off).Figure 1: Cardinal Resources Tenements in Ghana:
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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 UpdateCardinal’s Board has approved this Feasibility Study and recommends progressing the Project to construction pending successful completion of financing activities.The Company in conjunction with appointed financial advisers, Cutfield Freeman & Co, (ASX/TSX – Press Release dated 3 April 2019) have received a number of term sheets from banks and financiers. With the release of the Feasibility Study and accompanying NI43-101 Technical Report (ASX/TSX Press Release dated 28 November 2019) additional banks, financiers and corporates have shown interest in Project Finance participation and have subsequently been granted access to the data room. In addition, the Company is concurrently evaluating strategic alternatives to bring the Namdini Project into production with a view to maximising economic outcomes for Cardinal shareholders. In the meantime, the Company remains in a strong financial position with cash reserves of approximately A$20 million.Project Development Partners:Table 1: Study TeamIn conjunction with moving the Project toward a financial investment decision, work continues on further project optimisation with our Project Partners (Table 1) and regional exploration utilising Cardinal’s strong cash at bank of approximately A$20 million.Cardinal’s ~900 km² of prospective exploration tenure within hauling distance of the proposed Namdini gold production plant remains a short-term opportunity for project enhancement.Exploration activities, including drilling, will recommence shortly with the stated aim of identifying shallow, high grade deposits that can augment existing Namdini ore to further enhance the current project economics. Recent positive results from exploration activities, for example at Ndongo East, provide encouragement that higher grade gold systems may exist in the region within trucking distance to the Namdini deposit.Project Metallurgical Update
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