Name of the Project
Namdini gold project.

Location
The project is located within the Nangodi and Bole-Bolgatanga greenstone belts of north-east Ghana.

Project Owner/s
Cardinal Resources.

Project Description
A feasibility on the project has confirmed Namdini as a gold project with attractive economic returns.

The 9.5-million-tonne-a-year project is based on a single, large openpit with a conventional process plant design: crush, grind, float, regrind, high shear oxidation and carbon-in-leach.

The project is expected to produce 421 000 oz in the first 12 months, with forecast production for the first three years estimated at 1.1-million ounces. The project has a mine life of 15 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of $914-million and an internal rate of return of 43%, with a payback of 21 months.

Capital Expenditure
The project is estimated at $348-million, with a contingency of $42-million.

Planned Start/End Date
Production is targeted for the second half of 2022.

Latest Developments
Nordgold has urged shareholders of takeover target Cardinal Resources to carefully consider their options in the race for the Namdini gold project.

Nordgold is in a standoff with Chinese suitor Shandong Gold Mining, having each lobbed a A$1 a share final offer for Cardinal Resources.

The Australian Takeovers Panel has been approached by all invested parties to intervene, with Nordgold requesting affirmation that Shandong would be unable to increase its A$1 a share final offer, while Shandong is hoping to be granted leave to do just that.

Nordgold and Shandong Gold Mining are stuck at the A$1 a share threshold unless a superior offer emerges from a third party.

While Cardinal has consistently urged shareholders to accept the Shandong Gold Mining offer, Nordgold CEO Nikolai Zelenski has urged Cardinal shareholders to consider the future of the Namdini project.

“I believe we are the more attractive buyer for this project, because I believe we will develop it better. We have a strong presence and . . . record in this region,” Zelenski told Mining Weekly Online, pointing out that the company has developed four mines in neighbouring Burkina Faso and Guinea.

Nordgold is hoping to quickly complete permitting for the project, allowing for construction to take place soon after.

Zelenski has said that, in commercial terms, the Nordgold offer is "slightly more attractive" than the Shandong Gold Mining offer, considering that the Russian firm will also launch an off-market takeover offer for all the outstanding shares in Cardinal, on the same terms as its on-market offer.

The off-market offer will also be free of conditions, and will provide accelerated payment terms, at an offer price of A$1 a share, subject to there being no higher competing offer.

Key Contracts, Suppliers and Consultants
Lycopodium (feasibility study manager, process plant and associated infrastructure, capital cost and process operating-cost estimates, hydrology and hydrogeological engineering studies); Golder Associates Ghana (geotechnical engineering studies); Knight Piésold Consulting (tailings storage facility, environmental and selected infrastructure design); ALS Laboratory (metallurgical testwork to support the process design criteria); Orway Mineral Consultants (comminution data analysis, crushing and grinding option studies); Independent Metallurgical Operations (metallurgical testwork management, analysis and process flowsheet development); Maelgwyn Mineral Services Africa (Aachen process metallurgical optimisation); MPR Geological Consultants (mineral resource modelling of the Namdini deposit); Orefind (geology and deposit structural genesis); NEMAS Consult (environmental-impact assessment study); Geosystems Consulting (tailings storage facility environmental-impact study); MKM Social (socioeconomic study and resettlement action plan); Sebbag Group International (mine design review); Whittle Consulting (enterprise optimisation); and BDO Advisory (financial model integrity and reviewer).

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