Name of the Project
Namdini gold project.

Location
About 50 km south-east of Bolgatanga, the capital of the Bolgatanga Municipal District and Upper East Region of north Ghana.

Client
Cardinal Resources.

Project Description
The Namdini project has been confirmed to be a technically and financially robust low-cost mining opportunity with potential to generate strong positive cashflows.

A preliminary economic assessment (PEA) on the proposed development of the project, completed in February, is based on a large, single, openpit with a Phase 1 smaller and higher-grade starter pit of about one-million tonnes a year using a conventional semiautogenous mill, flotation and carbon-in-leach circuit.

The PEA evaluated three production throughput rates – 4.5-million tonnes a year, 7-million tonnes a year and 9.5-million tonnes a year – all with strong returns. The PEA has proposed a phased approach to the project, starting with a 4.5-million-tonne-a-year throughput that will be designed for expansion to a higher output.

Depending on the project scenario, chosen gold production will average between 159 000 oz/y and 330 000 oz/y. Life of mine (LoM) is estimated at 14 years for the 9.5-million-tonne-a-year option, 19 years for the 7-million-tonne-a-year option and 27 years for the 4.5-million-tonne-a-year option. The target LoM pit includes indicated mineral resources of 91-million tonnes at 1.1 g/t and inferred mineral resources of 22-million tonnes at 1.1 g/t using September 2017 mineral resource estimate data.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The PEA estimated a pretax net present value, at a 5% discount rate, of $706-million for the 4.5-million-tonne-a-year option; $913-million for the 7-million-tonne-a-year option and $1.04-billion for the 9.5-million-tonne-a-year option. The internal rate of return is estimated at 42% for the 4.5-million-tonne-a-year option, 54% for the 7-million-tonne-a-year option and 62% for the 9.5-million-tonne-a-year option. Payback will range from four to 3.5 years.

Value
Depending on the project scenario, chosen development costs will range from $275-million to $426-million.

Duration
Not stated.

Latest Developments
Cardinal Resources has signed a $25-million term sheet with Sprott Private Resource Lending for working capital and funding to complete the preliminary and definitive feasibility studies at the project. The facility will have a 30-month repayment term, with early repayment flexibility. Cardinal will issue about 4.25-million ordinary shares to Sprott, subject to regulatory approval, and the facility will be secured against the company’s assets, as well as those of its wholly owned subsidiary Cardinal Namdini Mining.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Cardinal Resources, tel +61 8 6558 0573 or email info@cardinalresources.com.au.