AMN - GHANA: Cardinal triples Namdini Mining Licence area

Cardinal Resources has received approval for the expansion of the Mining Licence from 19sqkm to 63sqkm, more than tripling the size of the Mining Licence for its world-class Namdini Gold Project in Ghana. The term of the approval from the Minerals Commission of Ghana is 15 years and this is renewable.

The expanded Mining Licence allows for further financial optimisation by repositioning infrastructure such as tailings storage facilities, stockpiles and waste dumps while the exploration potential is enhanced within the expanded area along the Namdini shear to the south.

Cardinal’s chief executive officer and managing director Archie Koimtsidis said: “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.”

A Large-Scale Mining Licence covering the Namdini Mining Licence was granted to Cardinal Namdini Mining Limited, 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 19sqkm in the Dakoto area of the Talensi District in the Upper East Region of Ghana.

The expanded Large-Scale Mining Licence now covers 63sqkm and allows Cardinal to optimise and de-risk mine and infrastructure design and optimise financial outcomes as the company continues to progress the FEED program.

Cardinal is readying for development of the Namdini project in Northern Ghana, subject to concluding project development financing. Once developed, Namdini 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.

A 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/ounce).

www.cardinalresources.com.au