Cardinal Resources Makes New Gold Discovery at Ndongo License

TORONTO, July 16, 2018 (GLOBE NEWSWIRE) -- Cardinal Resources Limited (ASX:CDV) (TSX:CDV) (“Cardinal” or “the Company”) is pleased to announce that it has intersected further gold at a new discovery named Ndongo East on its 100% owned Ndongo License, located approximately 15 km north of the Company’s flagship Namdini Gold Project which has a 6.5 Moz Indicated Mineral Resource (Figure 1).

Highlights

• RC drilling has returned significant gold intercepts from the Ndongo East target:

• NDRC248:   9m @ 23.3 g/t Au (including 3m @ 59.2 g/t Au) from 60m
• NDRC237:   9m @ 2.4 g/t Au from 43m
  
• NDRC216:   7m @ 4.4 g/t Au from 14m
  
• NDRC241:   6m @ 2.0 g/t Au from 11m
  

• Rock chip samples returned significant gold grades within two Ndongo prospects including:

• 13.7 g/t Au from Ndongo East
• 3.5 g/t Au from Ndongo East
• 1.6 g/t Au from Dusi

• These results further highlight the potential for discovery of economic gold mineralisation within the Ndongo License which straddles the prolific Ndongo Shear Zone located approximately 15 km north of Cardinal’s Namdini Gold deposit (6.5 Moz Indicated Resource)

• Field crews are continuing with geological mapping, surface rock sampling, trenching and geophysical surveys to help identify new targets and refine existing targets

• Drilling is continuing and further assay results are pending from Ndongo East             

Cardinal’s Chief Executive Officer / Managing Director, Archie Koimtsidis stated:

“We are very encouraged with the first pass shallow RC drilling results from Ndongo East which tested approximately 400 m strike length of coincident gold-in-soil anomalies and geophysical targets. This discovery lies within a much larger target area which has an overall strike length of approximately 9 km (Figure 2).

“Ndongo East is now the second target within the Ndongo license to return significant gold mineralisation. The first was the recent discovery made by Cardinal at the Zupeliga South target located approximately 10 km to the southwest of this new discovery at Ndongo East (see Press Release dated 28 May 2018).

“The objective of this first pass programme covering the Ndongo licence is to discover shallow higher-grade gold mineralisation that could be mined in satellite pits and hauled to Namdini for processing.”

Figure 1: Cardinal’s Three Large Scale Tenements comprising the Bolgatanga Project and the Namdini Project

Figure 2: Ndongo Tenement with Exploration Prospects

Ndongo Prospecting License

The Ndongo Prospecting License covers an area of 295 km², having been recently expanded by the purchase of two exploration licence areas from Kinross Gold in August 2017 (Figure 1).

The license area is considered highly prospective for the discovery of economic gold mineralisation associated with the prolific Nangodi Shear Zone, a splay fault off the main regional-scale Bole-Bolgatanga Shear.  Elsewhere, the Nangodi Shear Zone is spatially related to no fewer than four gold discoveries, including the Company’s flagship Namdini Gold Project with a 6.5 Moz Indicated Resource, the Shaanxi Mine, the historic Nangodi Gold Mine and the Youga Gold Mine in Burkina Faso, adjacent to the Ghana border.  In addition, there are numerous historic shallow artisanal workings along many parts of this shear zone approximately 15 km north of the Namdini Gold Project (Figure 2).

Ndongo East Prospect

The Ndongo East Prospect is located within North East - South West trending Birimian metavolcanics and metasediments.

Rock chip samples collected during geological mapping at this prospect were observed to be variably altered with chlorite-silica-carbonate alterations and containing pyrite sulphides.

Several RC drill fences have been drilled across the strike of the coincident gold-in-soil anomalies and geophysical targets with encouraging results. The mineralised intercepts show that gold mineralisation currently occurs over a strike length of approximately 400 m (Figures 3, 4 and 5) and importantly, remains open in all directions.

Further RC drilling is planned to commence immediately along strike and at depth to further delineate this gold mineralised zone and to determine whether additional sub-parallel mineralised horizons can be located.

Figure 3: Ndongo East Prospect with RC Drill Results and Rock Chip Sample Locations

Figure 4: Ndongo East Prospect Section A - A¹

Figure 5: Ndongo East Prospect Section B - B¹

Rock Chip Samples and Results

Seven exploration target areas approximately 15 km north of the Namdini Gold Project have been initially identified for more detailed investigation through assessing geophysical, geochemical and geological data (Figure 2). Rock chip samples from two target areas, Ndongo East and Dusi (Table 1 and Figure 6) have returned favourable results.  Further sampling has been conducted across the license and assay results are awaited.

Figure 6: Ndongo East and Dusi Prospects Rock Chip Sample Sites

ABOUT CARDINAL

Cardinal Resources Limited (ASX:CDV) (TSX:CDV) is a gold-focused exploration and development Company which holds interests in tenements within Ghana, West Africa. 

The Company’s Namdini Project has an Indicated Mineral Resource of 6.5 Moz of gold contained in 180 Mt at 1.1 g/t Au at a cut-off of 0.5 g/t Au and an Inferred Mineral Resource of 0.5 Moz of gold contained in 13 Mt @ 1.2 g/t Au at a cut-off of 0.5g/t Au.

The Company is focused on the development of the Namdini Project through advancing its PFS studies, supported by additional multi-disciplinary engineering and metallurgical activities.

Exploration programmes are also continuing at the Company’s Bolgatanga (Northern Ghana) and Subranum (Southern Ghana) Projects.

For further information contact:

Archie Koimtsidis                                                               Alec Rowlands
CEO / MD                                                                             IR / Corp Dev
Cardinal Resources Limited                                              Cardinal Resources Limited
P: +61 8 6558 0573                                                              P: +1 647 256 1922

Bettina Filippone
Renmark Financial Communications Inc
E: bfilippone@renmarkfinancial.com
P: +1 416 644 2020 or +1 514 939 3989

Competent Person’s / Qualified Person’s Statement

The information in this press release is based on information prepared by Mr. Paul Abbott, a full-time employee of Cardinal Resources, who is a member of the Geological Society of South Africa. Mr. Abbott has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and the activity which he is undertaking to qualify as a Competent Person, as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.

The information in this press release has been compiled and reviewed by Mr. Richard Bray, a Registered Professional Geologist with the Australian Institute of Geoscientists and Mr. Ekow Taylor, a Chartered Professional Geologist with the Australasian Institute of Mining and Metallurgy.  Mr. Bray and Mr. Taylor have more than five years’ experience relevant to the styles of mineralisation and type of deposits under consideration and to the activity which is being undertaken to qualify as a Competent Person, as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” and as a Qualified Person as defined by the NI43-101 instrument.  Mr. Bray and Mr. Taylor are full-time employees of Cardinal and hold equity securities in the Company.  Mr. Bray and Mr. Taylor have consented to the inclusion of the matters in this report based on the information in the form and context in which it appears.

Disclaimer

This ASX / TSX press release has been prepared by Cardinal Resources Limited (ABN: 56 147 325 620) (“Cardinal” or “the Company”).  Neither the ASX or the TSX, nor their regulation service providers accept responsibility for the adequacy or accuracy of this press release.

This press release contains summary information about Cardinal, its subsidiaries and their activities, which is current as at the date of this press release.  The information in this press release is of a general nature and does not purport to be complete nor does it contain all the information, which a prospective investor may require in evaluating a possible investment in Cardinal.

By its very nature exploration for minerals is a high‐risk business and is not suitable for certain investors.  Cardinal’s securities are speculative.  Potential investors should consult their stockbroker or financial advisor.  There are a number of risks, both specific to Cardinal and of a general nature which may affect the future operating and financial performance of Cardinal and the value of an investment in Cardinal including but not limited to economic conditions, stock market fluctuations, gold price movements, regional infrastructure constraints, timing of approvals from relevant authorities, regulatory risks, operational risks and reliance on key personnel and foreign currency fluctuations.

Except for statutory liability which cannot be excluded and subject to applicable law, each of Cardinal’s officers, employees and advisors expressly disclaim any responsibility for the accuracy or completeness of the material contained in this press release and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this Announcement or any error or omission here from. Except as required by applicable law, the Company is under no obligation to update any person regarding any inaccuracy, omission or change in information in this press release or any other information made available to a person nor any obligation to furnish the person with any further information.  Recipients of this press release should make their own independent assessment and determination as to the Company’s prospects, its business, assets and liabilities as well as the matters covered in this press release.

Forward‐looking statements

Certain statements contained in this press release, including information as to the future financial or operating performance of Cardinal and its projects may also include statements which are ‘forward‐looking statements’ that may include, amongst other things, statements regarding targets, anticipated timing of the PEA on the Namdini project, estimates and assumptions in respect of mineral resources and anticipated grades and recovery rates, production and prices, recovery costs and results, capital expenditures and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. These ‘forward – looking statements’ are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Cardinal, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies and involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward‐looking statements.

Cardinal disclaims any intent or obligation to update publicly or release any revisions to any forward‐looking statements, whether as a result of new information, future events, circumstances or results or otherwise after today’s date or to reflect the occurrence of unanticipated events, other than required by the Corporations Act and ASX and TSX Listing Rules. The words ‘believe’, ‘expect’, ‘anticipate’, ‘indicate’, ‘contemplate’, ‘target’, ‘plan’, ‘intends’, ‘continue’, ‘budget’, ‘estimate’, ‘may’, ‘will’, ‘schedule’ and similar expressions identify forward‐looking statements.

All forward‐looking statements made in this press release are qualified by the foregoing cautionary statements. Investors are cautioned that forward‐looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward‐looking statements due to the inherent uncertainty therein.

Table 2: Meta-Data Listing of Drill Holes

Table 3:  Summary of Individual Intercepts

Notes:

• Samples are analyzed for Au (SGS Lab FAA505 method) which is a 50-gm fire assay fusion with AAS instrument finish.
• Grid coordinates are in WGS84 Zone 30 North.