Cardinal Resources (ASX:CDV, CDV.TO) has entered into an agreement with Red Back Mining, a subsidiary of Kinross Gold (KGC, K.TO) to acquire two large prospecting licenses in North East Ghana. This purchase will increase the size of the Ndongo tenement to almost 290 square kilometers, further increasing the land position over the Namdini shear.
The Ndongo land package is approximately 10 kilometers away from the Namdini project where the company has defined a total resource of 931,000 ounces in the indicated category with an additional 3.63 million ounces in the inferred category at an average grade of approximately 1.15 g/t gold. These 4.6 million ounces will undoubtedly lead to building Ghana’s next gold mine as the company has recently been able to confirm a higher metallurgical recovery rate after releasing disappointing recovery rates last year.
We are looking forward to see the results of expansion drill programs at Namdini, whilst the company will also be able to release a first economic study later this year (?). The company is currently trading at A$0.625, which is 468% higher than when we first mentioned the company at A$0.11 in August 2015
In other news, Cardinal has also identified a 4200 X 300 meter gold in soil anomaly with gold grades exceeding 0.1 g/t along the entire 4.2 kilometer strike length of the Kungongo prospect, located approximately 45 kilometers west of Namdini. The size of the new gold zone and the encountered gold grades will accelerate Cardinal’s exploration plans, and the company plans to initiate an RC and diamond drill program any day now.