AMN - GHANA: Namdini development permit granted

Cardinal Resources has been granted the permit for the development of the 5.1-million-ounce Namdini Gold Project in Ghana. This follows approval of the company's Environmental Impact Statement by the Ghanaian Environmental Protection Agency.

The approval has been secured during a time of strengthening gold prices which will have a positive impact on project economics.

Following the release of the Namdini Gold Project feasibility study in late 2019, the gold price has traded within a range of US$1,452 to US$1,757 per ounce.

The feasibility study evaluated the Namdini project outcomes at a gold price of US$1,350 per ounce but also presented gold price sensitivities from US$1,150 per ounce and up to US$1,550 per ounce.

Based on the current gold price, Namdini Gold Project has a pre-tax net present value of at least US$1.44 billion based on feasibility study assumptions.

Namdini's gold ore reserve of 5.1 million ounces (138.6 million tonnes at 1.13 g/t gold for 5.1 million ounces includes 400,000 ounces in the proved category and 4.7 million ounces probable.

The permits and approval timeline is:

• July 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 2020;
• February 2020 - Relocation Action Plan (RAP) 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 Licence granted. This permits the use of water for construction and mine operations purposes; and
• April 2020 - Ghanaian EPA approves Cardinal's EIS, granting its permit for the development of the Namdini Gold Project.

There have been no confirmed cases of COVID-19 at any of Cardinal’s sites or offices and a comprehensive response plan is in place to ensure the protection of the company’s staff and contractors. 

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.

www.cardinalresources.com.au