Cardinal Intercepts High‐Grade Shallow Gold at Ndongo East
TORONTO, March 27, 2019 (GLOBE NEWSWIRE) Cardinal Resources Limited (ASX/TSX: CDV) (“Cardinal” or “the Company”) is pleased to announce further intersections of high‐grade, shallow gold mineralisation at the Ndongo East deposit. Importantly, the Ndongo Prospecting License is located only 24km north of the Company’s Namdini Gold Project for which Cardinal declared a Maiden Probable Ore Reserve of 4.76Moz on the 18 September 2018 (Figure 1).
- Today’s high‐grade gold intersections from Ndongo East include:
— 8.3m @ 11.3 g/t Au from 75.7m in NDDD059
— 5.2m @ 4.5 g/t Au from 60m in NDDD061
— 6.3m @ 2.8 g/t Au from 58.2m in NDDD058
- Previous high‐grade gold intersections from Ndongo East included:
— 14m @ 7.0 g/t Au from 69m in NDDD046*
— 9m @ 23.3 g/t Au from 60m in NDRC248*
— 7m @ 4.4 g/t Au from 14m in NDRC216*
— 6m @ 12.6 g/t Au from 2m in NDRC275*
— 3m @ 29.3 g/t Au from 45m in NDDD036*
*Refer to press releases dated 16 July 2018, 29 August 2018 and 23 January 2019 on Ndongo East
- Drilling has encountered multiple intercepts of near‐surface mineralisation;
- Drilling is ongoing and will continue to evaluate the open strike and depth extension of the Ndongo East mineralised system;
- Additional parallel mineralised structures striking NE‐SW remain to be evaluated by drilling and provide high priority drill targets;
- Infill auger drilling and geophysical surveys to commence in April over the Ndongo East deposit and its southern extension ~7km strike length to define the scope and scale of this structurally controlled mineralisation shear system.
On 16 July and 29 August 2018, as well as on 23 January 2019, Cardinal reported numerous intersections of high‐grade gold at its Ndongo East deposit within the Ndongo Prospecting License and has now intersected further high‐grade gold during a recently completed diamond drilling program.
The Company plans to steadily ramp up exploration at Ndongo East after evaluating further drill core and assay results which determine the strike and depth extents of the mineralised system as well as the structural components of the various lithological units.
Cardinal’s Chief Executive Officer / Managing Director, Archie Koimtsidis stated:
These latest shallow high-grade results have further enhanced our confidence in the Ndongo East gold deposit and how it is evolving.
The Ndongo East discovery is particularly encouraging with the strike length of 450m, comprising higher grade, shallow gold mineralisation still open along strike and at depth (Figures 2, 3 and 4).
Beyond this initial mineralised zone, a further 750m of gold mineralisation has been intersected along strike towards the south west.
The Ndongo East prospect lies within a larger target area of ~7km in length that has yet to be fully explored. Planning is underway for a Gradient Array IP survey and auger soil drilling programme which will commence in April to evaluate this larger area which could generate further drill targets
Figure 1 accompanying this announcement is available at: http://www.globenewswire.com/NewsRoom/AttachmentNg/3e862f98-60bc-43cd-8d3e-967800429dd6
Ndongo Prospecting License
The Ndongo Prospecting License covers an area of 295 km2 and is considered highly prospective for the discovery of economic gold mineralisation associated with the prolific Nangodi Shear Zone, a splay fault off the main regional‐scale Bole‐Bolgatanga Shear. Elsewhere, the Nangodi Shear Zone is spatially related to no fewer than four gold discoveries, including the Company’s Namdini Gold Project with a 4.76Moz Probable Reserve, the Shaanxi Gold Mine, the historic Nangodi Gold Mine and the 2.1 Moz Youga Gold Mine in Burkina Faso, adjacent to the Ghanaian border. In addition, there are numerous historic shallow artisanal workings along many parts of this shear zone ~15 to 25 km north of the Namdini Gold Project (Figure 1).
Ndongo East Prospect
The Ndongo East Prospect is located within NE‐SW trending Birimian metavolcanics and metasediments. Gold mineralisation is developed mostly along diorite‐granodiorite contact zones where competency contrasts create brittle fracturing allowing the ingress and precipitation of gold mineralising fluids (Figures 2, 3 and 4). The mineralised horizons contain variable chlorite‐silica‐carbonate‐sericite alteration with sulphides (mainly pyrite with very minor arsenopyrite). Occasional visible gold grains and blebs have been observed in the core.
The gold mineralisation at Ndongo East is confined to specific gold bearing altered shear zones of pyrite-silica-ankerite carbonate dipping NW. Initial drilling indicates two orientations to this mineralisation, namely a steeply plunging NW orientation and a shallower W-SW dipping orientation. The current diamond drilling is designed to step out in small increments from the initial high-grade section line (E-E, Figure 2) to ensure that the mineralised structures are understood before embarking on a wider spaced drill campaign along strike.
A marker horizon comprising a very narrow, thinly bedded, black pyritic mudstone has been observed to occur at the base of the mineralised intersections within the metavolcanics (Figures 3 and 4). This marks a hiatus (pause) in the continuation of volcanic activity in the area. Although this marker horizon is unrelated to mineralisation within the metavolcanics, it will be a very useful marker as more shallow diamond drilling is done further along strike as it can be used to define the base of this shallow mineralisation.
Previously announced drilling intersected higher‐grade mineralised structures concentrated in the northern portion of the shear zone with coincident gold‐in‐soil and geophysical targets defined to a strike length 450m NE-SW (Figure 2).
Subsequent RC drilling along fence lines further to the southwest along strike and at depth to test for mineralisation has proven encouraging with further high‐grade intercepts within the mineralised structures. This indicates that the mineralised system is open along a NE‐SW strike and at depth with multiple mineralised intersections. The furthest drill fence to the southwest intersected 2m at 27.0 g/t Au from 10m downhole in NDRC247 which suggests a strike potential up to 1.2km of mineralised structures. (refer to Cardinal’s ASX/TSX Press Release 29 August 2018 “Cardinal Extends Ndongo East Discovery Strike Length”).
Follow up systematic shallow diamond drilling is continuing at Ndongo East at short intervals along strike to extend the continuity of the high-grade mineralised zones. These additional drill holes will determine the strike and depth extents of the mineralised system and will evaluate the structural components of the various lithological units.
Figure 2 accompanying this announcement is available at: http://www.globenewswire.com/NewsRoom/AttachmentNg/9b609551-5299-475e-a578-2fdcc9c03bca
Drill Section E1-E1 (Figure 3) comprises drill holes NDDD058 and NDDD059. These two drill holes have intersected shallow gold mineralised haloes between 8m to 16m wide with very encouraging grades.
Figure 3 accompanying this announcement is available at: http://www.globenewswire.com/NewsRoom/AttachmentNg/03d10e05-c2a7-4598-acea-7a5d7277db86
Drill Section E-1-E-1 (Figure 4) presently comprises drill holes NDDD060 and NDDD061. These two drill holes have intersected shallow gold mineralised haloes between 5m to 7m wide with very encouraging grades.
Figure 4 accompanying this announcement is available at: http://www.globenewswire.com/NewsRoom/AttachmentNg/f2157ef4-1f20-4ea0-85e7-f16f2a18984a
Cardinal Resources Limited (ASX/TSX: CDV) is a West African gold‐focused exploration and development Company that holds interests in tenements within Ghana, West Africa.
The Company is focused on the development of the Namdini Project with a Maiden Ore Reserve of 4.76Moz and is now advancing the feasibility study.
Exploration programmes are also underway at the Company’s Bolgatanga (Northern Ghana) and Subranum (Southern Ghana) Projects.
Cardinal confirms that it is not aware of any new information or data that materially affects the information included in its announcement of the Maiden Ore Reserve of 18 September 2018. All material assumptions and technical parameters underpinning this estimate continue to apply and have not materially changed.
For further information contact:
|Archie Koimtsidis||Alec Rowlands|
|CEO / MD||IR / Corp Dev|
|Cardinal Resources Limited||Cardinal Resources Limited|
|P: +61 8 6558 0573||P: +1 647 256 1922|
|Andrew Rowell||Peta Baldwin|
|Cannings Purple||Cannings Purple|
|E: firstname.lastname@example.org||E: email@example.com|
|P: +61 400 466 226||P: +61 455 081 008|
Competent Person’s / Qualified Person’s Statement
The information in this press release is based on information prepared by Mr. Paul Abbott, a full-time employee of Cardinal Resources, who is a member of the Geological Society of South Africa. Mr. Abbott has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and the activity which he is undertaking to qualify as a Competent Person, as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.
The information in this press release has been compiled and reviewed by Mr. Richard Bray, a Registered Professional Geologist with the Australian Institute of Geoscientists and Mr. Ekow Taylor, a Chartered Professional Geologist with the Australasian Institute of Mining and Metallurgy. Mr. Bray and Mr. Taylor have more than five years’ experience relevant to the styles of mineralisation and type of deposits under consideration and to the activity which is being undertaken to qualify as a Competent Person, as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” and as a Qualified Person as defined by the NI43-101 instrument. Mr. Bray and Mr. Taylor are full-time employees of Cardinal and hold equity securities in the Company. Mr. Bray and Mr. Taylor have consented to the inclusion of the matters in this report based on the information in the form and context in which it appears.
This ASX / TSX press release has been prepared by Cardinal Resources Limited (ABN: 56 147 325 620) (“Cardinal” or “the Company”). Neither the ASX or the TSX, nor their regulation service providers accept responsibility for the adequacy or accuracy of this press release.
This press release contains summary information about Cardinal, its subsidiaries and their activities, which is current as at the date of this press release. The information in this press release is of a general nature and does not purport to be complete nor does it contain all the information, which a prospective investor may require in evaluating a possible investment in Cardinal.
By its very nature exploration for minerals is a high‐risk business and is not suitable for certain investors. Cardinal’s securities are speculative. Potential investors should consult their stockbroker or financial advisor. There are a number of risks, both specific to Cardinal and of a general nature which may affect the future operating and financial performance of Cardinal and the value of an investment in Cardinal including but not limited to economic conditions, stock market fluctuations, gold price movements, regional infrastructure constraints, timing of approvals from relevant authorities, regulatory risks, operational risks and reliance on key personnel and foreign currency fluctuations.
Except for statutory liability which cannot be excluded and subject to applicable law, each of Cardinal’s officers, employees and advisors expressly disclaim any responsibility for the accuracy or completeness of the material contained in this press release and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this Announcement or any error or omission here from. Except as required by applicable law, the Company is under no obligation to update any person regarding any inaccuracy, omission or change in information in this press release or any other information made available to a person nor any obligation to furnish the person with any further information. Recipients of this press release should make their own independent assessment and determination as to the Company’s prospects, its business, assets and liabilities as well as the matters covered in this press release.
Certain statements contained in this press release, including information as to the future financial or operating performance of Cardinal and its projects may also include statements which are ‘forward‐looking statements’ that may include, amongst other things, statements regarding targets, anticipated timing of the feasibility study (FS) on the Namdini project, estimates and assumptions in respect of mineral resources and anticipated grades and recovery rates, production and prices, recovery costs and results, capital expenditures and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. These ‘forward – looking statements’ are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Cardinal, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies and involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward‐looking statements.
Cardinal disclaims any intent or obligation to update publicly or release any revisions to any forward‐looking statements, whether as a result of new information, future events, circumstances or results or otherwise after today’s date or to reflect the occurrence of unanticipated events, other than required by the Corporations Act and ASX and TSX Listing Rules. The words ‘believe’, ‘expect’, ‘anticipate’, ‘indicate’, ‘contemplate’, ‘target’, ‘plan’, ‘intends’, ‘continue’, ‘budget’, ‘estimate’, ‘may’, ‘will’, ‘schedule’ and similar expressions identify forward‐looking statements.
All forward‐looking statements made in this press release are qualified by the foregoing cautionary statements. Investors are cautioned that forward‐looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward‐looking statements due to the inherent uncertainty therein.
NDONGO LICENSE AREA DRILL RESULTS
|Hole ID||Depth (m)||Dip (°)||Azimuth (°)||Grid_ID||mEast||mNorth||mRL|
|NDDD049||60.36||-60||119||UTM WGS84 Zone 30 North||758,159||1,201,886||220|
|NDDD050||110.9||-60||122||UTM WGS84 Zone 30 North||758,110||1,201,915||220|
|NDDD051||50.4||-60||120||UTM WGS84 Zone 30 North||758,229||1,201,975||219|
|NDDD052||79.46||-60||122||UTM WGS84 Zone 30 North||758,141||1,201,905||220|
|NDDD053||24.39||-60||118||UTM WGS84 Zone 30 North||758,201||1,201,860||220|
|NDDD054||81.4||-60||121||UTM WGS84 Zone 30 North||758,187||1,202,003||220|
|NDDD055||29.24||-60||122||UTM WGS84 Zone 30 North||758,134||1,201,772||219|
|NDDD056||23.09||-60||119||UTM WGS84 Zone 30 North||758,156||1,201,802||219|
|NDDD057||72.23||-60||122||UTM WGS84 Zone 30 North||758,092||1,201,800||219|
|NDDD058||74.55||-60||119||UTM WGS84 Zone 30 North||758,180||1,201,959||219|
|NDDD059||88.96||-60||122||UTM WGS84 Zone 30 North||758,158||1,201,977||219|
|NDDD060||68.4||-60||116||UTM WGS84 Zone 30 North||758,171||1,201,935||219|
|NDDD061||90.08||-59||117||UTM WGS84 Zone 30 North||758,144||1,201,957||219|
Table 1: Meta‐Data Listing of Drill Holes
Table 2: Summary of Individual Intercepts
- Samples are analysed for Au (SGS Lab FAA505 method) which is a 50g fire assay fusion with AAS instrument finish.
- Grid coordinates are in WGS84 Zone 30 North.
- The intercepts were calculated, using a greater than 0.5 g/t Au cut‐off, which approximates the cut‐off for Reasonable Prospects of Eventual Economic Extraction (“RPEEE”) as per the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code”) 2012 and the Canadian Institute of Mining (“CIM”) 2010 guidelines, and internal dilution of no more than 3m at <0.5g/t Au.
JORC CODE 2012 EDITION
TABLE 1 REPORTING OF EXPLORATION RESULTS
Section 1 – Sampling Technique and Data
|Criteria||JORC Code Explanation||Commentary|
|Sampling techniques||Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.||Reverse Circulation (RC) drill samples are collected by using downhole sampling hammers with nominal 127 to 140mm diameters. Samples are collected through a cyclone and immediately weighed to determine recoveries; the entire sample is then split by a three‐tier riffle splitter. Two samples (~2.5‐3.0 kg) are collected, one for the laboratory, the other a duplicate stored at the Bolgatanga sample shed.
Diamond sampling is by half‐core samples of HQ core size.
|Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.||Sampling is guided by Cardinal Resources protocols and Quality Control procedures as per industry standard.
To ensure representative sampling:
1m length HQ core samples are taken through the various lithological units.
|Aspects of the determination of mineralisation that are Material to the Public Report.
In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.
|The determination of mineralisation is based on observed alterations and lithological differences.
RC samples are crushed to ‐2mm, then a <1kg split sample is pulverised via LM2 Ring Pulveriser to a nominal 85% passing ‐75µm.
Diamond drill samples are crushed to ‐2mm, and a <1kg split sample is then pulverised via LM2 to a nominal 85% passing ‐75µm.
A 200g sub‐sample is taken from the pulverised material for analysis. A 50g charge weight is fused with litharge‐ based flux, cupelled and the prill dissolved in aqua regia. The gold tenor is then determined by AAS.
|Drilling techniques||Drill type (e.g. core, reverse circulation, open‐hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face‐sampling bit or other type, whether core is oriented and if so, by what method, etc.).||Reverse circulation drilling uses sampling hammer of nominal 127 to 140mm diameter.
Diamond core drilling is completed with core size of HQ with a standard tube. Triple tube is used in saprolite at the tops of the hole. Core is orientated using digital Reflex ACT II RD orientation tool.
Drill holes are inclined at ‐45⁰ to ‐60⁰ angles for optimal zone intersection. All drill collars are surveyed using Trimble R8 RTK GPS with downhole surveying every 30m using Reflex digital surveying instruments.
|Drill sample recovery||Method of recording and assessing core and chip sample recoveries and results assessed.||Diamond core recovery is logged and captured into the database. The Method of recording chip and core sample recoveries was to enter the relevant data on a hand‐held Motion F5te Tablet PC using a set of standard templates supplied by Maxwell Geoservices, Perth (Maxwell).
Reverse circulation sampling is good. RC chips are logged, weighed and captured to the database. RC sample recoveries are assessed by weighing 1m samples from the cyclone on a scale in the field and comparing with the theoretical volume contained in a 1m x 140mm diameter hole to calculate an estimated percentage sample recovery.
Core recovered from each drill run is measured and compared with the drill run length drilled to calculate an estimated percentage core recovery. For core drilling overall recoveries are excellent, weighted average recovery greater than 98%.
|Measures taken to maximise sample recovery and ensure representative nature of the samples.||Measures taken include the use of bigger HQ core size diamond drilling to maximise recovery, having a geologist onsite to examine core and core metres marked and orientated to check against the driller’s blocks and ensuring that all core loss is taken into account.
At the reverse circulation rig, sampling systems are routinely cleaned to minimise the opportunity for contamination and drilling methods are focused on sample quality. The measures taken to maximize RC sample recovery are through a cyclone and a 3‐tier riffle splitter. Each 1m sample is passed twice through the splitter before sampling to ensure maximum homogenisation of each sample and to collect an unbiased representative sample to be assayed.
The reverse circulation rigs have auxiliary compressors and boosters to help maintain dry samples. Where wet samples are encountered, the reverse circulation drilling is discontinued.
|Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.||No relationship is seen to exist between sample recovery and grade, and no sample bias has occurred due to preferential loss/gain of any fine/coarse material due to the acceptable sample recoveries obtained by the drilling methods employed.|
|Logging||Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.||All drill holes are fully logged. The lithology, alteration and geotechnical characteristics of core are logged directly to a digital format on a Field Toughbook laptop logging system following procedures and using Cardinal geologic codes. Data is imported into Cardinal’s central database after validation in LogChief™.
All geological logging is to a level of detail to support future Mineral Resource estimation.
|Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.||Logging is both quantitative and qualitative.
Both RC chips in trays and HQ core are photographed both in dry and wet form.
|The total length and percentage of the relevant intersections logged.||All drill holes are logged in full and to the total length of each drill hole.|
|Sub‐sampling techniques and sample preparation||If core, whether cut or sawn and whether quarter, half or all core taken.||Orientation of core is completed for all diamond holes and all are marked prior to sampling. Longitudinally cut half core samples are produced using a Core Saw with diamond impregnated blades. Samples are weighed and recorded.|
|If non‐core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.||RC samples are split using a three‐tier riffle splitter. The majority of RC samples are dry. On occasions that wet samples are encountered, they are dried prior to splitting with a riffle splitter.|
|For all sample types, the nature, quality and appropriateness of the sample preparation technique.||RC drill samples are sorted and dried in an oven for 8 hours and weighed. They are then crushed to ‐2mm using a RSD Boyd crusher and a <1.0kg split is taken. The reject sample is retained in the original bag and stored. The split is pulverised in a LM2 to a nominal 85% passing 75µm and a 200g sub‐sample is used for analysis.
Drill core samples are sorted, dried at 105°C for 4 hours and weighed. Samples are crushed to a nominal ‐2mm and then split to <1.0kg. The reject sample is retained in the original bag and stored. The split is pulverised in a LM2 to a nominal 85% passing 75%µm and approximately 200g sub‐sample of the pulverised material is used for assay.
All preparation equipment is flushed with barren material prior to commencement of the job.
|Quality control procedures adopted for all sub‐sampling stages to maximise representivity of samples.||Cardinal Resources has protocols that cover the sample preparation at the laboratories and the collection and assessment of data to ensure that accurate steps are used in producing representative samples for the analytical process. Key performance indices include:
• Contamination index of 95% (that is at least 95% of blanks pass); failures can only be attributed to probable minor laboratory contamination.
• Crushed Size index of 95% passing 2 mm (1:50 sample screened).
• Grind Size index of 85% passing 75 microns (minimum 1:50 sample screened).
• Check Samples returning at worst 20% precision at 90th percentile and bias of 5% or better.
Crusher and pulveriser are flushed with barren material at the start of every batch.
|Measures taken to ensure that the sampling is representative of the in‐ situ material collected, including for instance results for field duplicate/second‐half sampling.||Measures taken to ensure that the RC sampling is representative of the in‐situ material collected are to take field duplicate samples every 20th sample. Approximately 3kg samples from the splitter are retained from each sample and stored at the company’s secured premises for possible re‐assay.
Measures taken to ensure that the core sampling is representative is to sample half core at 1m intervals irrespective of lithologies due to the similarities in grade of the main lithologies.
Results of field duplicates for RC samples and Check Samples for both RC and DD samples are all evaluated to ensure that the results of each assay batch are acceptable.
|Whether sample sizes are appropriate to the grain size of the material being sampled.||Sample sizes are considered appropriate to the grain size.|
|Quality of Assay data and laboratory tests||The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.||All samples are analysed for gold by lead collection fire assay of a 50g charge with AAS finish; the assay charge is fused with the litharge‐based flux, cupelled and prill dissolved in aqua regia and gold tenor determined by flame AAS.
The analytical method is considered appropriate for the mineralisation style and is of industry standards. The quality of the Fire Assaying and laboratory procedures are considered to be entirely appropriate for the rock samples submitted.
|For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.||No hand‐held geophysical tools are used.|
|Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.||Sample preparation checks for pulp fineness are carried out by the laboratory as part of their internal procedures to ensure the grind size of 85% passing 75µm is being attained. Laboratories’ QAQC involves the use of internal lab standards using certified reference material (CRM) and blanks.
Cardinal’s QAQC protocol is considered industry standard with CRMs submitted on a regular basis with routine samples. The CRMs having a range of values and blanks are inserted in the ratio of 1:20. Duplicates are taken at the riffle splitter every 20th sample. No duplicate samples are taken from core samples.
Pulps are submitted to a secondary laboratory for checks on accuracy and precision of the primary laboratory. Coarse rejects are submitted back to the primary laboratory to assess the adequacy of the sub‐sampling process.
|Verification of sampling and assaying||The verification of significant intersections by either independent or alternative company personnel.||Significant intersections have been verified by alternative company personnel.|
|The use of twinned holes.||None of the drill holes in this report are twinned.|
|Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.||Primary data are captured on field tough book laptops using LogChief™ Software. The software has validation routines and data is then imported onto a secure central database.|
|Discuss any adjustment to assay data.||The primary data is always kept and is never replaced by adjusted or interpreted data.|
|Location of data points||Accuracy and quality of surveys used to locate drill holes (collar and down‐ hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.||RC drill hole collar coordinates are surveyed using handheld Garmin GPSmap 64s GPS within ±3m accuracy.
All drill collars are accurately surveyed using Trimble R8 RTK GPS system within ±10mm of accuracy (X, Y, Z).
Coordinates are based on three control stations established at Namdini by Sahara Mining Services.
Downhole survey on RC drill holes is completed by using Reflex Ez‐Shot survey instrument at regular 30 m intervals.
|Specification of the grid system used.||Coordinate and azimuth are reported in UTM WGS84 Zone 30 North.|
|Quality and adequacy of topographic control.||Topographic control at Ndongo was supplied by Southern Geoscience Consultants (Perth) using satellite imagery.|
|Data spacing and distribution||Data spacing for reporting of exploration results.||The RC drilling was carried out on variably spaced fence lines (30m to 775m apart) with hole spacing of 50m along lines testing mineralisation to a vertical depth of approximately 200m and covering a strike length of 1.25km.
The DD drilling was carried out on a spacing of 50m to 100m along fence lines testing mineralisation to a vertical depth of approximately 100m and to confirm the mineralisation intersected by the previous RC drilling.
Some step out diamond drilling at 12.5m spacing from the initial high-grade section lines was carried out to ensure that the mineralised structures plunges are understood before embarking on a wider spaced drill campaign along strike.
|Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.||Exploration is at the early stage, and as such drill data spacing and distribution are insufficient to establish geological and grade continuity that are appropriate for reporting Mineral Resources and Ore Reserves.|
|Orientation of data in relation to geological structure||Whether sample compositing has been applied.||No sample compositing has been applied.|
|Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.||Drillholes are orientated to achieve intersection angles as close to perpendicular to the mineralisation as practicable based on ground magnetic modelling data and previous RC drilling. Some sampling bias may occur.
Systematic geological mapping and structural information from the current diamond drilling are required to determine the true orientation of dips and structures of the mineralisation.
|If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.||No significant orientation‐based sampling bias is known at this time.|
|Sample security||he measures taken to ensure sample security.||An independent Ghanaian security contractor is used to ensure sample security.
The drilling contractor is accountable for drill core and RC chip production at the drill site. Final delivery from the drill site to the laydown area within the core yard is managed by Cardinal. The core yard technicians, field technicians and Geologists ensure the core and chips are logged, prepared and stored under security until collected for delivery to the laboratory.
At the time of sample collection, a sign‐off process between Cardinal and the laboratory delivery truck driver ensures that samples and paperwork correspond. The samples are then transported to the laboratory where they are receipted against the dispatch documents. The assay laboratories are responsible for the samples from the time of collection from Cardinal until final results are returned and checked by Cardinal Geologists.
Sample pulps and coarse rejects are retained by the laboratories and are shipped back to Cardinal after final results are returned where they are stored under security.
|Audits or reviews||The results of any audits or reviews of sampling techniques and data.||Sampling techniques are of industry standards. Data is audited by Maxwell Geoservices (Perth), who have not made any other recommendations.|
Section 2 – Reporting of Exploration Results
(Criteria listed in section 1 will also apply to this section where relevant)
|Criteria||JORC Code Explanation||Commentary|
|Mineral Tenement and Land Status||Type, name/reference number, location and ownership including agreements or material issues with third parties including joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.||The Ndongo Exploration Permit is on PL9/22, PL9/13 and PL9/19 licenses over an area of 295 sq. km located in the North‐East region of Ghana.|
|The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate in the area.||All tenements are current and in good standing.|
|Exploration Done by Other Parties||Acknowledgment and appraisal of exploration by other parties.||Exploration in the region has been undertaken by a number of groups including:
• 1933 ‐ Colonial discovery of Gold at Nangodi.
• 1934 to 1942 ‐ Nangodi Mine production and other small development projects in the area (e.g. Zug, Pelungu, Money Palava).
• 1992 to 1994 ‐ BHP conducted regional exploration programmes including regional stream sediment and broad soil sampling to follow‐up on stream sediment anomalies. Project was abandoned when BHP withdrew from activity in West Africa.
• 1996 to 1997 – Africwest granted regional Reconnaissance License and undertook extensive soil sampling at Nangodi.
• 2006 ‐ Etruscan (JV with Red Back): Conducted data review and compilation, soil and rock sampling and RAB drilling. Identified blind mineralisation at Zupeliga.
• 2011 ‐ Abzu (JV with Red Back): Completed data compilation, RC/diamond drilling at Nangodi and Zoog.
• 2012 ‐ Abzu (JV with Red Back): Conducted trenching, rock sampling, ground geophysics survey (magnetic and EM) and geologic mapping.
|Geology||Deposit type, geological setting and style of mineralisation||Drill samples were collected within sheared and folded rocks containing sulphides; mainly pyrite with minor arsenopyrite.
The geological setting is a Paleoproterozoic Greenstone Belt comprising Birimian metavolcanics, volcaniclastics and metasediments located along portion of the regional Bole‐Bolgatanga Shear Zone and a splay off this Shear Zone (the Nangodi Shear Zone).
The style of mineralisation is yet to be determined.
|Drill hole information||A summary of all information material to the understanding of the exploration results including tabulation of the following information for all Material drill holes:
• Easting and northing of the drill hole collar
• Elevation or RL (Reduced Level – elevation above sea level in meters) of the drill hole collar
• Dip and azimuth of the hole
• Down hole length and interception depth
• Hole length
|A summary of drill hole information is provided in this document.|
|If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.||There has been no exclusion of information.|
|Data aggregation methods||In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut‐off grades are usually Material and should be stated.||No weighting averaging techniques nor cutting of high grades have yet been undertaken.|
|Where aggregated intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.||Aggregated intercepts incorporating short lengths of high‐grade results within the lithological units are calculated to include no more than intervals of 3m below grades of <0.5 g/t Au when assay results are reported.|
|The assumptions used for any reporting of metal equivalent values should be clearly stated.||No metal equivalents are used in the intersection calculation.|
|Relationship between mineralisation widths and intercept lengths||These relationships are particularly important in the reporting of exploration results.||The relationship between mineralisation widths and intercept length from RC drilling are not yet known.|
|If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.||The geometry of the mineralisation with respect to the drill hole angles is not yet known.|
|If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).||The geometry of the mineralisation is unknown; only downhole length is reported (no true width of mineralisation is reported).|
|Diagrams||Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plane view of drill hole collar locations and appropriate sectional views.||Appropriate locality map is included within the body of the accompanying document.|
|Balanced Reporting||Where comprehensive reporting of all Exploration Results is not practical, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.||The accompanying document is considered to represent a balanced report.|
|Other substantive exploration data||Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observation; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.||Other exploration data collected is not considered material to this document at this stage.
The interpretation of the geological observations shown in the cross section are subject to possible change as new information is gathered.
Further data collection will be reviewed and reported when considered material.
|Further Work||The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large – scale step – out drilling).
Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.
|Geological mapping, surface rock sampling, trenching, geochemical surveys, geophysical surveys and DD/RC drilling are continuing.
Once all results have been received, further RC/DD drilling will be considered along strike and at depth to further delineate this gold mineralised zone and to determine whether more sub‐parallel mineralised horizons can be located.