Cardinal Resources shares jump after securing environmental permit for Namdini Gold Project in Ghana

By Deputy Chief EditorMay 4, 2020

159 1 minute read

Cardinal Resources Ltd (ASX:CDV) (TSE:CDV) has been granted the permit for the development of its Namdini Gold Project by the Ghanaian Environmental Protection Agency, who has approved the companys Environmental Impact Statement.

The approval has been secured during a time of strengthening gold prices which will have a positive impact on project economics.

Following the release of the Namdini Gold Project feasibility study in late 2019, the gold price has traded within a range of US$1,452 to US$1,757 per ounce.

The feasibility study evaluated the Namdini project outcomes at a gold price of US$1,350 per ounce, but also presented gold price sensitivities from US$1,150 per ounce and up to US$1,550 per ounce.

Namdini Project feasibility study outcomes

Based on the current gold price, Namdini Gold Project has a pre-tax net present value of at least US$1.44 billion based on feasibility study assumptions.

It is worth noting that Namdini has a gold ore reserve of 5.1 million ounces (138.6 million tonnes at 1.13 g/t gold), inclusive of 0.4 million ounces proved and 4.7 million ounces probable.