The Board of Cardinal Resources (ASX: CDV) has recommended progressing its rich Namdini Gold Project in Ghana to financial investment decision (FID) on-the-back of an extremely positive feasibility study.
A cashed-up Cardinal will now proceed to finalise CAPEX funding of an estimated US$348 million as it makes strong progress towards the construction phase of its Tier One gold project.
Highlights of the Feasibility Study results include:
- 5.1million ounces (Moz) Ore Reserve
- 421,000 oz in first 12 months
- US$1.46 billion in un discounted, pre-tax free cash flow forecast with the current life of mine (LOM) plan of 15 years at US$1,350/oz
- US$324 million in undiscounted, pre‐tax free cashflow, forecast during first year of full production at US$1,350/oz
- CAPEX payback of 21 months at US$1,350/oz, driven by yearly higher grades and recoveries, low strip ratio and low costs, within the starter pit
- Aachen Process Technology adopted to provide economic benefits via operating cost savings; 85% gold recovery during first three years; 83% gold recovery for current LOM plan
- Namdini 9.5 Mtpa gold project based upon a single, large open‐pit with a conventional process plant design; crush, grind, float, regrind, high shear oxidation and carbon in leach (CIL)
- First gold pour targeted for H2 2022
Cardinal’s CEO/MD Archie Koimtsidis said the results of the Feasibility Study have confirmed the world class quality of the Namdini asset.
Cardinal’s Technical Team, led by our Chief Operating Officer Dave Anthony, along with Lycopodium, Golders and various study managers, have delivered a compelling and robust technical and economic outcome, paving the way for our planned development of the Namdini Gold Project,” Mr Koimtsidis said.
“With over 1 million ounces slated for production in the first three years; 421,000 oz in Year 1 alone, and an average annual gold production of 287,000 oz over a 15‐year mine life, Namdini ranks amongst the world’s largest known, financially robust, undeveloped gold projects.”