West Afican gold specialist Cardinal Resources (ASX: CDV) has received approval for the expansion of the current Namdini Mining Licence from 19 sq. km to 63 sq. km , more than tripling the size of the Mining Licence for its world‐class Namdini Gold Project in Ghana.
Cardinal’s Chief Executive Officer / Managing Director, Archie Koimtsidis said the expanded Mining Licence will allow for further financial optimisation by repositioning infrastructure such as tailings storage facilities, stockpiles and waste dumps
He said it will also add significant exploration potential with the company eager to test along the Namdini shear to the south within expanded area.
“It is most pleasing to have the Minister for Lands and Natural Resources and the Minerals Commission of Ghana support our Mining Licence area expansion,” Mr Koimtsidis said.
“The expansion aligns with the company’s plan to not only significantly optimise the location of key infrastructure such as tailings storage facilities, stockpiles and waste dumps but also to further explore financial benefits during the Front‐End Engineering and Design (FEED) of the Namdini Project.
“Further, it allows the Company to expand its exploration activities immediately south of Namdini which has great potential along the southern extension of the Namdini shear.”
The Minerals Commission of Ghana has approved the significant expansion of the Namdini Mining Licence, with new total of 63 sq. km the maximum allowable area.
A Large‐Scale Mining License covering the Namdini Mining License was granted to Cardinal Namdini Mining Limited, a wholly owned subsidiary of Cardinal Resources Limited, by the Minister for Lands and Natural Resources under the Ghanaian Minerals and Mining Act 2006 (Act 703) in 2017.
The Large‐Scale Mining Licence originally covered 19 sq.km2in the Dakoto area of the Talensi District in the Upper East Region of Ghana. The expanded Large‐Scale Mining has been granted for an initial period of 15 years commencing in 2020 and is renewable.
Cardinal is readying for development of the world‐class Namdini Gold Project located in Northern Ghana, subject to concluding project development financing.
Once developed, the Namdini Gold Project is expected to produce over 360,000 ounces per annum for the first two years of operation and over the life of mine is expected to produce an average of 287,000 ounces per annum.
The Definitive Feasibility Study completed in late 2019, indicated compelling economics, including a post‐tax NPV of over US$958 million.