Cardinal Resources: Interim Metallurgical Update Demonstrates 86% Gold!

TORONTO, ONTARIO--(Marketwired - July 26, 2017) - Cardinal Resources Limited ("Cardinal" or "the Company") (ASX:CDV)(TSX:CDV) is pleased to announce interim results for Phase Two of its metallurgical test programme for the Namdini Gold Project ("Namdini").

HIGHLIGHTS

• Utilizing standard gold recovery techniques has demonstrated an overall increased gold recovery rate of 86%,
• A conventional grind‐flotation‐regrind‐CIL flowsheet continues to be the preferred process option

Cardinal's Project Manager, Bruce Lilford said:

"We are extremely pleased with the interim results as they continue to improve overall recoveries for Namdini. The test results thus far are demonstrating good lithological consistency, which will allow for predictable metallurgical performance in a production scenario.

Our Phase Two metallurgical test programme is focused on determining resource variability for our main lithology domains being metavolcanics, granite and diorite. The test programme was developed to enhance our metallurgical understanding in order to help ensure a robust process design.

Cardinal selected 16 separate life of mine drill holes as representative samples from the three main lithologies across the entire deposit. Each of the five metre downhole sample lengths were then composited by lithology for metallurgical testing.

The geostatistical resource model was used to target the average grade of the combined sample for each lithology, based on a notional cut-off grade of 0.4 g/t Au ("grams per tonne gold"). The intervals were selected to ensure that the following criteria were met:

• representative spatial distribution within the overall Namdini gold deposit,
• a range of gold grades, predicted to be encountered during normal mining operations, and
• average gold grades matching the overall Namdini geostatistical resource model above a 0.4 g/t Au cut-off

In addition to the drill holes noted above, the Company is conducting additional tests for the anticipated starter pit area. This supplemental metallurgical testing is still in progress.

As the metallurgical testing advances in the project development phase, the process flowsheet will continue to be optimized in order to provide the necessary detailed design criteria."

Cardinal's CEO / MD, Archie Koimtsidis said:

"This round of interim metallurgical results has clearly demonstrated good opportunity for higher gold recovery. We anticipate further confidence and improvement in overall gold recoveries as we continue our metallurgical test programmes."

Qualified Person - Competent Person's Statement

Scientific and technical information contained in this press release has been reviewed and approved by Marc LeVier, K. Marc LeVier & Associates, Inc., who is a 'qualified person' as defined by National Instrument 43-101- Standards of Disclosure for Mineral Projects ("NI43-101"). Mr. LeVier holds a Qualified Professional status from the Mining and Metallurgical Society of America.

The overall release has been compiled by Mr B A Lilford, Member of The Australasian Institute of Mining and Metallurgy (MAusIMM No. 301055), Project Manager of Cardinal Resources, who has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and the activities being reported upon 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'. Mr Lilford consents to the inclusion in this report of the statements based on the information in the form and context in which it appears.

Information in this release that relates to the Namdini Project is based on the results of the Metallurgical Testwork programme undertaken at SunTech Laboratories, Johannesburg, South Africa. The work has been monitored on behalf of Cardinal Resources by Mr B A Lilford, MAusIMM (No. 301055), who has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and the activities being reported upon 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'. Mr Lilford consents to the inclusion in this report of the statements based on the information in the form and context in which it appears.

Disclaimer

This ASX announcement ("Announcement") has been prepared by Cardinal Resources Limited (ABN: 56 147 325 620) ("Cardinal" or "the Company").

This Announcement contains summary information about Cardinal, its subsidiaries and their activities, which is current as at the date of this Announcement. The information in this Announcement 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 provide 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, each of Cardinal's officers, employees and advisors expressly disclaim any responsibility for the accuracy or completeness of the material contained in this Announcement 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. The Company is under no obligation to update any person regarding any inaccuracy, omission or change in information in this Announcement or any other information made available to a person nor any obligation to furnish the person with any further information. Recipients of this Announcement 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 Announcement.

Not an offer

This Announcement is for information purposes only and does not constitute or form any part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities in the Company in any jurisdiction. It is not intended to be and is not a prospectus, product disclosure statement, offering memorandum or private placement memorandum for the purpose of Chapter 6D of the Corporation Act 2001. This Announcement and its contents must not be distributed, transmitted or viewed by any person in any jurisdiction where the distribution, transmission or viewing of this Announcement would be unlawful under the securities or other laws of that or any other jurisdiction. This Announcement is not considered a recommendation by the Company or any of its affiliates, directors or officers that any recipient invest in the Company nor does it constitute as any investment, accounting financial, legal or tax advice.

Not financial product advice

This Announcement does not contain all information which may be material to the making of a decision in relation to the Company. Recipients of this document should carefully consider whether the securities issued by the Company are an appropriate investment for them in light of their personal circumstances, including their financial and taxation position. No account has been taken of the objectives, financial situation or needs of any recipient of this document. Any investor should seek independent financial and taxation advice independent assessment and determination as to the Company's prospects prior to making any investment decision, and should not rely on the information in this Announcement for that purpose. Neither the Company nor its related bodies corporate is licensed to provide financial advice in respect of the Company's securities or any financial products. This Announcement does not involve or imply a recommendation or a statement of opinion in respect of whether to buy, sell or hold securities in the Company. The securities issued by the Company are considered speculative and there is no guarantee that they will make a return on the capital invested, that dividends will be paid on the shares or that there will be an increase in the value of the shares in the future.

Forward‐looking statements

Certain statements contained in this Announcement, 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, among other things, statements regarding targets, estimates and assumptions in respect of mineral reserves and 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 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 Announcement 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.

To view metallurgical test program details please click on the following link: http://media3.marketwire.com/docs/CDV0726.pdf 

CONTACTS_PLACEHOLDER_START

CONTACT INFORMATION:

• Archie Koimtsidis
• CEO /MD
• Cardinal Resources Limited
• Australia Office + 61 8 6558 0573
• Canada Office + 1 647 256 1922
• Ghana Office + 233 382 021 838