Cardinal discovers new 4km long gold auger soil anomaly
Tuesday, Aug 15, 2017
Cardinal Resources Limited (ASX:CDV) (TSX:CDV) (“Cardinal” or “the Company”) is pleased to announce the identification of significant auger gold-in-soil anomalies within the Kungongo Prospect (“Kungongo”) of the Company’s Bolgatanga Project, located in the Upper East Region of Ghana.


-- Significant auger gold-in-soil anomalies discovered on Cardinal’s 100% Kungongo Prospect
    •  4.2 km x 300m major auger gold-in-soil anomaly identified with +100ppb gold anomaly along entire strike
    •  800m x 250m secondary auger gold-in-soil anomaly identified with +100ppb gold anomaly along entire strike
-- RC / DD drill programme planned to evaluate soil anomalies with drilling anticipated to commence by the end of this month

Cardinal’s Chief Executive Officer / Managing Director, Archie Koimtsidis said:
“We are delighted to announce a new discovery of auger gold-in-soil anomalies within the Kungongo Prospect located close to our Namdini Project.

“The dimensions of these soil anomalies are several orders of magnitude greater than the average background gold mineralisation values which is extremely encouraging at this very early stage.

“This new discovery provides confidence for Cardinal to expand its exploration activities to other parts of the Bolgatanga Region.

“Drill testing under selected targets is planned to commence during this quarter.”

The Kungongo prospect is located in NE Ghana some 25 km SW of Bolgatanga town and 45 km west of Cardinal’s Namdini project.  The prospect covers an area of 120 sq km.

The extensive regional Bole-Bolgatanga shear zone occurs over a length of 6.5 km across the NW corner of the tenement (Figure 2). The tenement contains Birimian greenstones which extend north east of the tenement boundary.  Granitoids occur over a large portion of this tenement.

The Bole - Bolgatanga shear zone is regarded as prospective as it displays a level of structural complexity that would possibly provide structural trap positions for mineralizing fluids.

The Kungongo permit straddles the contact between the Bole Greenstone Belt and the granodiorite intrusive for some 6.5 km. Several anomalous gold occurrences have been identified along this contact and some late alkaline intrusives are known to have gold associated with them along their margins.

Various geophysical surveys have been carried out over the Kungongo Prospect by Cardinal. These have been processed and interpreted by Southern Geoscience Consultants (SGC Perth).

These included:

1. Airborne magnetic-radiometric survey with interpretation and targets.
2. Gradient Array IP-Resistivity survey with interpretation and targets.
3. Ground magnetic survey.

The initial interpretation assumes the rocks and stratigraphy and/or structure are most likely dipping to the northwest as the resistivity and chargeability patterns tend to suggest this. Cardinal plans to test this with the upcoming drill programme.

The targets within the prospect area have been covered with detailed auger drilling which samples the saprolite horizons below the overburden to delineate areas of gold anomalism that could then be correlated with the geophysical targets to determine follow up priorities.

Drill testing under selected targets is planned to commence during this quarter.


Cardinal Resources Limited (ASX:CDV) (TSX:CDV) is an African gold-focused exploration and development Company which holds interests in tenements within Ghana, West Africa.

The Company’s Namdini Project has a declared gold Mineral Resource of 23.86Mt @ 1.21 g/t for 931,000 oz Indicated and 100.15Mt @ 1.13 g/t for 3.63Moz Inferred (Refer to Cardinal “Technical Report on Namdini” dated 5 April 2017). The Company is focused on the development of the Namdini Project through a resource expansion drilling programme, pre-feasibility studies, detailed metallurgical testwork and process flowsheet studies. Exploration activity is also underway at the Company’s Bolgatanga (Northern Ghana) and Subranum (Southern Ghana) Projects.

Cardinal technical staff maintain a set of standard procedures for drilling.

For diamond drilling (which is completed using HQ core collection), the key aspects are that the holes are electronically surveyed every 30 metres down hole, all core runs are routinely oriented using a Reflex digital orientation instrument, core recovery is measured and geotechnical logging is completed as the core is recovered at the rig site.  Back at the Bolgatanga office the core is photographed wet and dry and after logging onto digital data recorders, the core is cut such that a half HQ core is retained for reference. The same sector of core, relative to the core orientation mark is routinely sampled for assaying.

For RC drilling, samples are collected on a one metre interval using a multi‐‐‐tier riffle splitter, duplicate field samples are routinely collected (one in 20), the cyclone is thoroughly cleaned on each rod change and the splitter is cleaned after each metre sample. The sample bag weights for each metre interval are routinely weighed, as are the split samples for submission to the assay laboratory and approximately 2.5 to 3 kilogram chip samples are dispatched to the laboratory. Amongst the samples, a suite of internationally accredited and certified reference material (CRM) along with blanks are included in the sample submission sequence. The standards cover the gold grade range expected.

For auger drilling, samples are collected from the saprolite horizons by drilling at least 1m into the saprolite. Approximately 2 kg samples are collected from each auger drill hole and sent to the Bolgatanga core yard for weighing. CRM standards and blanks are inserted into the sample submission sequence at 1 in 20 samples. The standards cover the gold grade range expected.

The individual sample bags for core, RC drill chips and auger samples are sealed at the Bolgatanga site office and are grouped into tens for placement in a large plastic bag which is then sealed. The assay laboratory provides sample transport from Bolgatanga such that the chain of custody passes from Cardinal to the assay laboratory at the Bolgatanga sample logging   facility.

Once sample bags and pulps are returned from the assay laboratory to Cardinal’s Bolgatanga facility, a representative suite of pulps covering the entire range of both sample batches and gold grades are chosen for ‘referee’ analysis at an accredited independent laboratory. As with the routine sample submission, a suite of international certified standards and blanks are inserted into the referee assaying pulp sequence.

Cardinal technical staff carry out routine analysis of the quality control data on receipt of assay results from the laboratory in order to determine if the batch of samples has passed industry standard levels for control samples.  If the batch ‘fails’, the batch of assays is rejected and a re‐assay request for the batch of samples is made to the laboratory.

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