Cardinal Resources (ASX:CDV) has released more drill results from its Namdini gold exploration project in Ghana, Africa. The drill bit has encountered 13 meters of 3.65 g/t gold and 11 meters at 3.78 g/t gold at a relatively shallow mineralized zone, barely 30-40 meters below surface. This is a very important update as this allows the company to expand the known mineralized zone to a width of in excess of 100 meters. The wider the zone is, the lower the strip ratio of any future mine will be.
Since announcing these intervals, Cardinal has also raised A$1M through a placement with Macquarie giving the company some more room to breathe and allowing it to continue its exploration efforts at Namdini. We wouldn’t be surprised at all if an upcoming drill program would confirm a strike length of 1,000 meters, and with a surface area of 125,000 square meters, Namdini would be on track to have a total tonnage of in excess of 10 million tonnes. We think the project currently already contains more than 1 million ounces of gold and still expect Cardinal to find a lot more gold.
Cardinal Gold sure is one of the most exciting exploration companies out there and we expect the company to substantially increase the currently known strike length at Namdini. After discussing Cardinal Resources in August at A$0.11 per share, the share price increased by almost 55% to A$0.17 before settling down at A$0.135 where it’s trading at now.
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Disclosure: The author has a long position in Cardinal Resources but could initiate one any given moment. Please see our disclaimer for current positions.
