Cardinal Resources Ltd (ASX:CDV) has completed the preliminary feasibility study (PFS) for its Namdini Gold Project in Ghana, West Africa.
The study demonstrates that Namdini contains 4.76 million gold ounces from a maiden probable ore reserve estimate of 129.6 million tonnes at 1.14 g/t gold with a 0.5 g/t cut-off.
READ: Cardinal Resources eyes further upside to 65 million ounces of gold resource in Ghana
Cardinal managing director & CEO Archie Koimtsidis said the company now has a compelling business case to move into the definitive feasibility study (DFS) phase for the throughput processing facility based on the optimum return on capital employed (ROCE).
He said: “The [definitive] feasibility study is fully-funded and will form the basis for the development of our Namdini project in Ghana with completion anticipated in Q3, 2019.
“The PFS study confirms the Namdini Project as one of Ghana’s and Africa’s most promising undeveloped, large gold assets.
“The financial modelling of the project shows it to be technically sound and financially viable and could generate US$1.4 billion free cash flow (pre-tax) utilising the 9.5 million tonnes per annum throughput model.”
READ: Cardinal Resources’ drilling continues to extend Ndongo East gold discovery in Ghana
The PFS used a US$1,105 per ounce gold price to provide a life-of-mine optimised pit converting 73% of the 6.5 million ounces of indicated mineral resource to probable reserves.
It estimated an 86% metallurgical recovery for the starter pit and 84% for the life-of-mine with ongoing optimisation test work.
A 38% post-tax internal rate of return (IRR) was generated through a US$1,250 gold price financial model.
All-in sustaining costs of US$599 per ounce were determined for the first 2.5 years, inclusive of a 1.8-year payback period.
The capital development cost for the 9.5 million tonne per annum throughput plant is US$414 million, down from US$426 million.
READ: Cardinal Resources finalises $US25 million credit facility with Sprott
Cardinal is focused on advancing its feasibility for Namdini and is supporting its work with additional multi-disciplinary engineering activities.
Exploration programs are also underway at the company’s Bolgatanga and Subranum projects, in northern and southern Ghana, respectively.