TORONTO, Feb. 27, 2020 (GLOBE NEWSWIRE) -- Cardinal Resources Limited (ASX/TSX: CDV) is pleased to announce the Water Extract Permits for the Company’s Namdini Gold Project in Ghana, West Africa have been granted by the Ghanaian Water Resources Commission.
HIGHLIGHTS
- Water Use Permit has been granted by Water Resources Commission of Ghana to extract raw water from the White Volta River for mining and processing purposes
- Water Use Permit has been granted by Water Resources Commission of Ghana to extract raw water from boreholes located within the Mining License area for mine construction and development purposes
Cardinal’s Chief Operating Office, Dave Anthony stated:
“These key permits will enable Cardinal to support the development and operation of the Namdini Gold Project. These permits allow for all year-round water extraction from the White Volta River, as well as boreholes located on the project site.”
Cardinal’s Chief Executive Officer / Managing Director, Archie Koimtsidis stated:
“We are extremely grateful to the Water Resources Commission of Ghana and all involved for the approval of our Water Use Permits and ongoing water licences.
“We are enthused with the granting of these critical permits as they are essential to the Namdini Project. With these approvals in place, there is clear demonstration of continued support for the project development from the Ghana Government. The Namdini Gold Project is rapidly and successfully moving into its development phase”
Project Development Timeline
Proposed Project development schedule (Subject to Financing*).
| Milestone | Target timeline |
| Advance Relocation Action Plan to completion | Q3 2020 |
| Advance Front End Engineering and Design (“FEED”) to completion | Q4 2020 |
| Target production commencement | H2 2022 |
*The Company’s proposed project development schedule assumes that the Company is fully funded to proceed throughout and beyond the FEED process, into early works and full construction. Whilst the Company is currently engaged in the financing process, the actual development schedule will depend upon the manner and timing of the Company’s financing plans. Dates are therefore indicative only.
FEED UPDATE
Cardinal is pleased to advise that the FEED program of works is making excellent progress in accordance to the project execution schedule and with all principle design and procurement activities advancing as needed.
The FEED program is focused on further de-risking of the Project, while also looking for opportunities to reduce upfront capital and ensure achievement of the project execution schedule.
The program will more precisely define the technical requirements of the Namdini Project and deliver an optimised mine design and processing treatment plant. This work is also designed to refine capital estimates and operating costs.
Several key Owners Team positions in Cardinal have been appointed, to advance permitting, social and community requirements as well as site development, to support the Early Works Construction stages. The Relocation Action Plan has been developed and has been signed off by all stakeholders ready for initiation, subject to final project finance.
SPROTT PRIVATE RESOURCE LENDING (COLLECTOR) LP
Cardinal advises that a repayment of US$8.0 million will be made to Sprott Private Resource Lending (Collector), LP (“Sprott”).
Following this repayment, the Sprott loan position will be approximately US$19.0 million, down from approximately US$27.0 million as at February 2020.
Cardinal reasonably expects that the Sprott facility will be fully repaid by the maturity date, being 1 March 2021.
The Sprott facility financial covenants have been revised to the below:
- Working capital ratio was 1.20 to 1.00 and is now 1.10 to 1.00; and
- The amount of Unrestricted Cash was US$2.5 million and is now greater than US$1.0 million or if, denominated in AU$, an amount in AU$ equivalent to US$1.0 million.
Other than the above there have been no material changes to the facility agreement.
ABOUT CARDINAL
Cardinal Resources Limited (ASX/TSX: CDV) is a West African gold‐focused exploration and development Company that holds interests in tenements within Ghana, West Africa.
The Company is focused on the development of the Namdini Project, for which the Company has published a gold Ore Reserve of 5.1Moz (138.6 Mt @ 1.13 g/t Au; 0.5 g/t cut-off), inclusive of 0.4Moz Proved (7.4 Mt @ 1.31 g/t Au; 0.5 g/t cut-off) and 4.7Moz Probable (131.2 Mt @ 1.12 g/t Au; 0.5 g/t cut-off).
The Company announced completion of the Feasibility Study (FS), which was released October 28, 2019. The technical report on the Feasibility Study, prepared in accordance with NI 43-101 of the Canadian Securities Administrators, was issued on SEDAR at www.sedar.com on November 28, 2019.
Exploration programmes are also underway at the Company’s Bolgatanga (Northern Ghana) and Subranum (Southern Ghana) Projects.
Cardinal confirms that it is not aware of any new information or data that materially affects the information included in its announcement of the Ore Reserve of April 3, 2019 and its completed Feasibility of October 28 2019. All material assumptions and technical parameters underpinning this estimate continue to apply and have not materially changed.
Authorised for release by the Board of Cardinal Resources Limited.
For further information contact:
| Archie Koimtsidis | Alec Rowlands |
| CEO / MD | IR / Corp Dev |
| Cardinal Resources Limited | Cardinal Resources Limited |
| P: +61 8 6558 0573 | P: +1 647 256 1922 |
Cannings Purple
Andrew Rowell or Peta Baldwin
E: arowell@canningspurple.com.au
E: pbaldwin@canningspurple.com.au
Competent / Qualified Person Statement
The scientific and technical information in this announcement that relates to Exploration Results, Mineral Resources and Ore Reserves at the Namdini Gold Project has been reviewed and approved by Mr. Richard Bray, a Registered Professional Geologist with the Australian Institute of Geoscientists and Mr. Ekow Taylor, a Chartered Professional Geologist with the Australasian Institute of Mining and Metallurgy. Mr. Bray and Mr. Taylor have more than five years’ experience relevant to the styles of mineralisation and type of deposits under consideration and to the activity which is being undertaken to qualify as a Competent Person, as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” and as a Qualified Person for the purposes of NI43-101. Mr. Bray and Mr. Taylor are full-time employees of Cardinal and hold equity securities in the Company.
Disclaimer
This ASX / TSX press release has been prepared by Cardinal Resources Limited (ABN: 56 147 325 620) (“Cardinal” or “the Company”). Neither the ASX or the TSX, nor their regulation service providers accept responsibility for the adequacy or accuracy of this press release.
This press release contains summary information about Cardinal, its subsidiaries and their activities, which is current as at the date of this press release. The information in this press release is of a general nature and does not purport to be complete nor does it contain all the information, which a prospective investor may require in evaluating a possible investment in Cardinal.
By its very nature exploration for minerals is a high‐risk business and is not suitable for certain investors. Cardinal’s securities are speculative. Potential investors should consult their stockbroker or financial advisor. There are a number of risks, both specific to Cardinal and of a general nature which may affect the future operating and financial performance of Cardinal and the value of an investment in Cardinal including but not limited to economic conditions, stock market fluctuations, gold price movements, regional infrastructure constraints, timing of approvals from relevant authorities, regulatory risks, operational risks and reliance on key personnel and foreign currency fluctuations.
Except for statutory liability which cannot be excluded and subject to applicable law, each of Cardinal’s officers, employees and advisors expressly disclaim any responsibility for the accuracy or completeness of the material contained in this press release and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this Announcement or any error or omission here from. Except as required by applicable law, the Company is under no obligation to update any person regarding any inaccuracy, omission or change in information in this press release or any other information made available to a person nor any obligation to furnish the person with any further information. Recipients of this press release should make their own independent assessment and determination as to the Company’s prospects, its business, assets and liabilities as well as the matters covered in this press release.
Forward‐looking statements
Certain statements contained in this press release, including information as to the future financial or operating performance of Cardinal and its projects may also include statements which are ‘forward‐looking statements’ that may include, amongst other things, statements regarding targets, anticipated timing of the feasibility study (FS) on the Namdini project, estimates and assumptions in respect of mineral resources and anticipated grades and recovery rates, production and prices, recovery costs and results, capital expenditures and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. These ‘forward – looking statements’ are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Cardinal, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies and involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward‐looking statements.
Cardinal disclaims any intent or obligation to update publicly or release any revisions to any forward‐looking statements, whether as a result of new information, future events, circumstances or results or otherwise after today’s date or to reflect the occurrence of unanticipated events, other than required by the Corporations Act and ASX and TSX Listing Rules. The words ‘believe’, ‘expect’, ‘anticipate’, ‘indicate’, ‘contemplate’, ‘target’, ‘plan’, ‘intends’, ‘continue’, ‘budget’, ‘estimate’, ‘may’, ‘will’, ‘schedule’ and similar expressions identify forward‐looking statements.
All forward‐looking statements made in this press release are qualified by the foregoing cautionary statements. Investors are cautioned that forward‐looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward‐looking statements due to the inherent uncertainty therein.