A preliminary economic assessment for Cardinal Resources Ltd.'s Namdini gold project in Ghana confirmed the project to be a technically and financially robust low-cost mining opportunity with potential to generate strong positive cash flows.
The study evaluated three production throughput rates — 4.5 million, 7.0 million and 9.5 million tonnes per annum — with development CapEx ranging from US$275 million to US$426 million, according to a Feb. 5 release.
The payback period varies from four to 3.3 years.
Project development was based on a large, single open pit with an initial smaller phase and higher-grade starter pit of about 1 million ounces of gold production through a conventional semiautogenous grinding mill, flotation and carbon-in-leach circuit.
Depending on the eventual production scenario chosen, average annual production will range from 159,000 to 330,000 ounces, while all-in sustaining costs will be between US$701/oz and US$794/oz.
Discounted at 5%, the project's posttax net present value will come in at US$445 million for the 4.5-mtpa operation, US$574 million for the 7-mtpa operation and US$649 million for the 9.5-mtpa operation, with the internal rate of return ranging from 31% to 44%.
Namdini's mine life was estimated at 27 years for the 4.5-mtpa scenario, 19 years for 7.0-mtpa operation and 14 years for the 9.5-mtpa operation.
The study assumed a gold price of US$1,300/oz and used resource data of 91 million tonnes at 1.1 g/t of gold for 3.3 million ounces of gold in the indicated category and 22 million tonnes at 1.1 g/t of gold for 800,000 ounces of gold in the inferred category, both applying a cutoff of 0.5 g/t.
"We now have a compelling business case to move into the Pre-Feasibility and Definitive Feasibility Study phases. These studies will form the basis for the development of our Namdini Project in Ghana," Cardinal CEO and Managing Director Archie Koimtsidis said.
