TORONTO, March 26, 2020 (GLOBE NEWSWIRE) — Cardinal Resources Limited (ASX/TSX: CDV) is pleased to advise that it has received approval for the expansion of the current Mining Licence from 19 km2 to 63 km2, more than tripling the size of the Mining Licence for its world-class Namdini Gold Project in Ghana.HIGHLIGHTSMining Licence increased to a maximum allowable area of 63 km2 from 19 km2 for a term of 15 years and is renewableExpanded Mining Licence allows for further financial optimisation by repositioning infrastructure such as tailings storage facilities, stockpiles and waste dumpsExploration potential enhanced within expanded area along the Namdini shear to the southCardinal’s Chief Executive Officer / Managing Director, Archie Koimtsidis stated:“It is most pleasing to have the Minister for Lands and Natural Resources and the Minerals Commission of Ghana support our Mining Licence area expansion. The expansion aligns with the Company’s plan to not only significantly optimise the location of key infrastructure such as tailings storage facilities, stockpiles and waste dumps but also to further explore financial benefits during the Front-End Engineering and Design (FEED) of the Namdini Project. Further, it allows the Company to expand its exploration activities immediately south of Namdini which has great potential along the southern extension of the Namdini shear.”Namdini Mining Licence
The Minerals Commission of Ghana has approved a significant expansion of the Namdini Mining Licence. The new Mining Licence area covers a total of 63 km2 which is the maximum allowable area (Figure 1).A Large-Scale Mining License covering the Namdini Mining License was granted to Cardinal Namdini Mining Limited (“Cardinal Namdini”), a wholly owned subsidiary of Cardinal Resources Limited, by the Minister for Lands and Natural Resources under the Ghanaian Minerals and Mining Act 2006 (Act 703) in 2017.The Large-Scale Mining Licence originally covered 19km2 in the Dakoto area of the Talensi District in the Upper East Region of Ghana. The expanded Large-Scale Mining Licence now covers 63 km2 (Figure 1) and has been granted for an initial period of 15 years commencing in 2020 and is renewable. The expanded Large-Scale Mining Licence allows Cardinal to optimise and de-risk mine and infrastructure design and optimise financial outcomes as the Company continues to progress the FEED programme.Cardinal is readying for development of the world-class Namdini Gold Project located in Northern Ghana, subject to concluding project development financing. Once developed, the Namdini Gold Project is expected to produce over 360,000 ounces per annum for the first two years of operation and over the life of mine is expected to produce an average of 287,000 ounces per annum. The Definitive Feasibility Study completed in late 2019, indicated compelling economics, including a post-tax NPV5 of over US$958 million which is capable of generating over US$1.55 billion in undiscounted project cashflow (assuming a gold price of US$1,550/oz).Cardinal’s Project development timetable is outlined below.Project Development TimelineProposed Project Development Schedule (subject to financing*)*The Company’s proposed project development schedule assumes that the Company is fully funded to proceed throughout and beyond the FEED process into early works and full construction. Whilst the Company is currently engaged in the financing process, the actual development schedule will depend upon the manner and timing of the Company’s financing plans as well as any potential delays that may be associated with future Covid-19 disruptions. Dates are therefore indicative only.
**Key milestone in relation to the RAP was achieved with approval from the Minerals Commission of Ghana (MinCom) received. For more information please see ASX/TSX press release dated 11 March 2020.Figure 1: Namdini Mining Licence
https://www.globenewswire.com/NewsRoom/AttachmentNg/316459c7-48c5-4001-893e-7930988035d5ABOUT 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 Project, for which the Company has published a gold Ore Reserve of 5.1Moz (138.6 Mt @ 1.13 g/t Au; 0.5 g/t cut‐off), inclusive of 0.4Moz Proved (7.4 Mt @ 1.31 g/t Au; 0.5 g/t cut‐off) and 4.7Moz Probable (131.2 Mt @ 1.12 g/t Au; 0.5 g/t cut‐off).The Company announced completion of the Definitive Feasibility Study (DFS), which was released 28 October 2019. The technical report on the Feasibility Study, prepared in accordance with NI 43‐101 of the Canadian Securities Administrators was issued on SEDAR at www.sedar.com on 28 November 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 3 April 2019 and its completed Definitive Feasibility Study of 28 October 2019. All material assumptions and technical parameters underpinning this estimate continue to apply and have not materially changed.This announcement is authorized by the Board of Cardinal Resources LimitedFor further information contact:Competent / Qualified Person Statement
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