Modern Mining October 2018

GOLD

Positive PFS a big step forward for Namdini The recently released Preliminary Feasibility Study (PFS) on Cardinal Resources’ Namdini gold project in Ghana makes it clear that the project has the potential to be developed into one of West Africa’s most significant gold mines with a throughput capacity of 9,5 Mt/a and an average yearly production of 294 000 ounces of gold over a 14-year mine life. Capex – assuming the 9,5 Mt/a throughput model is adopted – is estimated at US$414 million with the project generating a 38 % post-tax Internal Rate of Return (IRR) based on a gold price of US$1 250/oz.

L ocated within the Birimian terrane of north-eastern Ghana approxi- mately 60 km south of the Burkina Faso-Ghana border, the Namdini gold deposit has so far been de- lineated over a strike length of 1 150 m, up to 350 m wide and 700 m deep, and is situated within the Nangodi greenstone belt. Although the presence of gold in the region was recorded in the 1930s, modern regional exploration prior to Savannah Mining’s dis- covery of the deposit through prospecting in September 2013 was limited to regional geophysical surveys. Cardinal signed an agree- ment with Savannah over the Namdini area in July 2014, and commenced drilling later that same month. In all, around 118 km of drilling

have been completed since the first discov- ery hole. While Namdini is Cardinal’s ‘flagship’ project, the company has a prospective land

package which totals approximately 900 km 2 . This provides significant exploration upside which could result in additional economic deposits being identified within trucking dis- tance of the proposed Namdini plant. Cardinal Resources is an Australian com- pany listed on the ASX and TSX (which counts Gold Fields as a significant shareholder). It is headed by Archie Koimtsidis, who was formerly Deputy Country Manager Ghana at PMI Gold

The proposed Namdini processing plant.

30  MODERN MINING  October 2018