Cardinal Resources (ASX:CDV) is getting set for a highly anticipated drilling in Ghana to follow a gold discovery that included hits of 67 metres at 3.10g/t gold and 51 metres at 3.58g/t gold.
Which saw Macquarie Bank ante up $1 million at $0.10 a share in a recent raising; gaining an institutional investor is a coup for an explorer.
The bank is known for its interest in the West African resources industry, having funded a number of successful West African gold projects over many years.
Macquarie became one of the largest shareholders in Cardinal with an equity position of 5.79% and bringing total funds raised by Cardinal to $6.0 million.
Macquarie is not the only fund invested in the stock. US Global Investors Inc. headquartered in San Antonio, Texas has also grown their shareholding to an equity position of 6.39%.
Managing director Archie Koimtsidis has significant form in West African gold projects and is credited with increasing PMI Gold’s resource from 1.5 to 4.5 million ounces.
Onto the new drill program at its Namdini Project and drilling is expected to re‐commence by mid‐October 2015. Site preparation of drill pads and access roads is currently underway for this drilling program after the wet season.
A reverse circulation program of drill holes to be between 80 metres to 120 metres depths is planned with diamond core drilling to follow if results warrant a follow up.
Results of the latest two drill holes which confirm that gold mineralisation exceeds 100 metre widths on the Namdini Project.
Gold mineralisation founds tends to support the view that the gold mineralisation has continuity along strike for approximately 800 metres. The mineralisation remains open along strike to the north and south and at depth.
Regional promise
The project is located in a mineral-rich region of Ghana where significant production has previously taken place from a number of gold mines and from numerous artisanal gold workings.
The producing open pit Youga Gold Mine, the historic Nangodi underground gold mine, the producing Shaanxi underground gold mine and the Namdini Mining Licence are all located along or adjacent to a major regional shear, which also passes through the eastern portion of the Ndongo tenement.
The Youga gold mine is currently in production and operated by Endeavour Mining Corporation (ASX:EVR, TSX:EDV).
Analysis
The new drill program following the gold discovery in Ghana is well funded after a capital raising that drew Macquarie Bank as a substantial shareholder.
Recent reverse circulation drilling within the Confirmed Mineralised Zone and north of the Confirmed Mineralised Zone returned shallow high grade gold with significant widths.
The share price has reflected the success to date, lifting 316% to $0.15. With further exploration success this would be chump change.
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