Cardinal Resources Ltd (ASX:CDV) (TSE:CDV) Namdini Deposit Mineral Resource Update

Cardinal Resources Limited (ASX:CDV) (TSE:CDV) ("Cardinal" or "the Company") announces an updated Mineral Resource estimate for the Namdini Gold Project ("Namdini") in Ghana, West Africa.

Namdini's Indicated Mineral Resource has increased to 120 M tonnes grading 1.1 g/t Au for 4.3 Moz Au with an Inferred Mineral Resource of 84 M tonnes grading 1.2 g/t Au for 3.1 Moz Au at a 0.5 g/t Au cut off. This was achieved with the deployment of 11 rigs which have drilled 33,406 m since the Company's first published NI 43-101 Mineral Resource estimate report by Roscoe Postle Associates Inc. ("RPA") on the 6th of April 2017.

Table 1 (see the link below) highlights Mineral Resource estimations at a series of cut-off grades. Currently the 0.5 g/t Au cut-off grade approximates an operational parameter that the Company believes to be applicable. This is in accordance with the guidelines of Reasonable Prospects for Eventual Economic Extraction ("RPEEE") per the Canadian Institute of Mining, Metallurgy and Petroleum "CIM Definition Standards for Mineral Resources and Mineral Reserves" (CIM, 2014) and the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code 2012). Refer to Sections 1, 2 and 3 of the JORC Code 2012 Edition Table 1 criteria in Appendix 1. The effective date of the mineral resource estimate is 11 September 2017.

Since discovery in 2014, Cardinal has drilled a total of 110 HQ diamond core holes and 165 RC drill holes comprising a total of 69,291 m, which forms the basis of today's Mineral Resource Update.

From this drilling, Cardinal is encouraged that infill drilling confirms additional mineralisation throughout the deposit.

The Namdini deposit is a structurally controlled orogenic gold deposit with numerous features similar to deposits found elsewhere in late Proterozoic Birimian terranes of West Africa.

Cardinal's Chief Executive Officer / Managing Director, Archie Koimtsidis said:

"We are very pleased that our intensive drilling campaign is achieving results with the overall increase in Mineral Resources and are especially delighted that so many ounces have been upgraded into the Indicated category. This upgrade is over a four-fold increase in the Indicated category from the Mineral Resource estimate published in the April 2017 NI43-101 technical report prepared by RPA.

"With the majority of the Indicated Mineral Resource continuous from surface to approximately 350m vertical depth, we anticipate a simple, single, large scale pit, with a low strip ratio as the preferred mining method. At this point in time, the higher-grade areas towards the northern part of the resource, close to surface, may be targeted in the early years of production.

"Additional drilling is in progress to further improve Mineral Resource classification and to further expand the resource. Cardinal anticipates continued news flow and is planning another Mineral Resource update which will feed into our ongoing Preliminary Economic Assessment study."

RESOURCE ESTIMATE PARAMETERS

The following information summarizes key parameters relating to the resource estimation:

- Geological and structural modelling: Logging, interpretation and modelling were undertaken by Cardinal Resources' technical staff and specialist structural consultants Orefind Pty Ltd, (Davis and Cowan, 2016-2017) resulting in a three-dimensional model of key lithologies, structures and weathering zones.

- Survey Control: A detailed topographic survey was completed. Drill hole collars were surveyed using differential GPS (DGPS), with down hole surveys taken at 30m intervals using electronic 'multi-shot' equipment.

- Bulk density data: Bulk densities are routinely measured as part of exploration data acquisition protocols. The bulk density database for the resource estimate comprises 1,395 measurements. Statistical analysis was undertaken on the bulk density data and a matrix of bulk densities were applied based on lithology and weathering zone. The large majority of the Namdini deposit is fresh rock. Bulk densities vary from 1.80 tonnes per cubic metre (t/m3) for strongly weathered rock to 2.73 t/m3 (for granite) and 2.82-2.83 t/m3 for metavolcanics, diorite and metasediments.

- Grade Estimation: MPR Geological Consultants Pty Ltd ("MPR") (QP/CP Mr. Nicolas Johnson) estimated recoverable resources for Namdini using Multiple Indicator Kriging ("MIK") with block support adjustment, a method that has been demonstrated to provide reliable estimates of recoverable open pit resources in gold deposits of diverse geological styles. The mineralized domain used for the current study was interpreted by MPR and Cardinal geologists on the basis of two metre down-hole composited gold grades and captures zones of continuous mineralization with composite grades of greater than nominally 0.1 g/t Au. The domain trends north-northeast over 1.2 km and dips approximately 60o to the west with an average horizontal width of approximately 350 m. The Mineral Resource can reasonably be expected to provide appropriately reliable estimates of potential mining outcomes at the assumed selectivity, without application of additional mining dilution or mining recovery factors. Validation of the MIK model was under taken visually and statistically.

The Mineral Resource classification also considered the quality of the data collected (geology, survey and assaying data), the density of data, the confidence in the geological models and mineralization model and grade estimation quality.

- Variance Adjustment: MPR's Mineral Resource estimates include a variance adjustment to give estimates of recoverable resources at various gold cut off grades. The variance adjustments were applied using the direct lognormal method. The variance adjustment factors reflect comparatively large scale, open pit mining consistent with Cardinal's perception of potential mining scenarios. The variance adjustment factors were estimated from the variogram model for gold grades assuming mining selectivity of 5 by 10 by 2.5 m (across strike, strike, vertical) with high quality grade control sampling on an 8 by 12 by 1.25 m pattern.

The Mineral Resource is prepared in accordance with both the Canadian Institute of Mining, Metallurgy and Petroleum "CIM Definition Standards for Mineral Resources and Mineral Reserves" (CIM, 2014) and the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code 2012). Refer to Sections 1, 2 and 3 of the JORC Code 2012 Edition Table 1 criteria in Appendix 1.

A technical report in support of the Mineral Resource estimate described herein and prepared in accordance with NI 43-101 will be filed on SEDAR within 45 days from the date hereof.

The Mineral Resource has been prepared in accordance with both the Canadian Institute of Mining, Metallurgy and Petroleum "CIM Definition Standards for Mineral Resources and Mineral Reserves" (CIM, 2014) and the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code 2012). Refer to Sections 1, 2 and 3 of the JORC Code 2012 Edition Table 1 criteria in Appendix 1.

A technical report in support of the Mineral Resource estimate described herein and prepared in accordance with NI 43-101 will be filed on SEDAR within 45 days from the date hereof.

To view tables and figures, please visit:
http://abnnewswire.net/lnk/UFDHXX0V


About Cardinal Resources Ltd

Cardinal Resources Ltd (ASX:CDV) (TSE:CDV) (OTCMKTS:CRDNF) is a West African gold exploration and development Company that holds interests in tenements within Ghana, West Africa.

The Company is focused on the development of the Namdini Project with a gold Ore Reserve of 5.1Moz (0.4 Moz Proved and 4.7 Moz Probable) and a soon to be completed Feasibility Study.

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 3 April 2019. All material assumptions and technical parameters underpinning this estimate continue to apply and have not materially changed.

 

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