Modern Mining

Cardinal Resources, listed on the ASX and TSX, has announced the results of a Preliminary Economic Assessment (PEA) of the Namdini gold project in Ghana, West Africa. According to Cardinal, the PEA confirms Namdini to be a technically and financially robust low-cost mining opportunity, with the potential to generate strong positive cashflows.

Development is based upon a large, single, open pit with ore treatment in a conventional SAG mill, flotation and CIL circuit. However, a higher-grade starter pit yielding more than 1 Moz of gold with a strip ratio of less than 0,9 has been identified for which further optimisation will be performed in the next study phase.

The PEA evaluated three production throughput rates of 4,5, 7,0 and 9,5 Mt/a and all resulted in strong returns. The preferred scale of development is to be selected following completion of feasibility studies. Development capital costs range from US$275 million to US$426 million. In addition, consideration is being given to a phased approach to the development of Namdini, commencing with a 4,5 Mt/a throughput that would be designed for expansion to a higher throughput.

Dependent upon the eventual production scenario chosen, average annual gold production ranges from 159 000 oz/a up to 330 000 oz/a at all-in sustaining costs from US$701/oz to US$794/oz.

The target Life of Mine pit includes 91 Mt at 1,1 g/t for 3,3 Moz (81 %) of indicated mineral resource and 22 Mt at 1,1 g/t for 0,8 Moz (19 %) of inferred mineral resources at a 0,5 g/t cut off using the September 2017 mineral resource estimate data.

Value enhancement opportunities have been identified and will be considered by the technical team as part of the Pre-Feasibility Study that has now commenced.

“Given the scope of detailed investigations that have been performed leading up to the preparation of the Preliminary Economic Assessment, the outcomes present a strong case on both technical and economic grounds for proceeding to the development of our Namdini project in Ghana,” comments Archie Koimtsidis, MD and CEO of Cardinal.

“Highly accredited global firms including Golder Associates, Lycopodium, Knight Piesold and Oreway Mineral Consultants were engaged to perform engineering and cost estimation for this study. They are all well-positioned to assist Cardinal through the next study and development phases of the Namdini project given their past and recent experience in consulting on successful project developments in West Africa.”

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