Cardinal Resources (CDV.TO, ASX:CDV) has released an updated resource estimate on its Namdini gold project in Ghana. The company most definitely did meet the expectations as the updated resource estimate contains more gold than originally anticipated, whilst having 4.3 million ounces in the indicated category is a good step towards effectively building a mine plan.
Using a cutoff grade of 0.5 g/t, Namdini’s indicated resource consists of 120 million tonnes at an average grade of 1.1 g/t gold but even if you would increase the cutoff grade to 0.8 g/t, the indicated resource would still contain 72 million tonnes at 1.4 g/t for 3.3 million ounces, indicating a robust resource.
It’s now very likely Namdini will be developed as a large open pit considering the continuity of the mineralization (Namdini really is one large mineralized system where a super pit definition seems to be the right approach) should result in a relatively low strip ratio. It’s also very likely the higher grade zones (highlighted in black on the previous image) of the anticipated open pit will be mined first as this would boost the economics and reduce the payback period.
The technical report has now been filed, so we will have a closer look at the entire document in the near future. Cardinal is currently also raising C$12M in a bought deal placement at C$0.65 with Clarus Securities.