Gold-focused Cardinal Resources’ prefeasibility study (PFS) for the Namdini gold project in Ghana has confirmed it as one of the country’s and continent’s most promising undeveloped, large gold assets.
The financial modelling of the project has shown it to be technically sound and financially viable, estimating that it could generate $1.4-billion free cash flow (pre-tax) using a 9.5-million-tonne-a-year throughput model.
Based on a gold price of $1 250/oz, the financial model generated a 38% post-tax internal rate of return. The after-tax net present value, using a 5% discount, is $586-million.
The PFS indicated $414-million in capital is required for the mine, which will be developed in two phases.
The starter pit will operate for 2.5 years and will produce 361 000 oz/y at an all-in sustaining costs of $599/oz. The starter pit has a 1.8 year payback period.
The life of mine (LoM) estimate, which includes the starter pit, is based on a 180-million-tonne resource. The LoM production will be $294 000 oz/y, or 3.98-million ounces over the 14-year operational life.
The PFS showed an 86% metallurgical recovery for the starter pit and 84% for the LoM with ongoing optimisation testwork.
Cardinal CEO and MD Archie Koimtsidis commented: “We now have a compelling business case to move into the definitive feasibility study (DFS) phase for the 9.5-million tonne a year throughput processing facility based upon the optimum return on capital employed.”
The DFS is fully funded and will form the basis for the development of the project, with completion anticipated in the third quarter of 2019.