Stock Code

CDV

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GoldUSD 1,226.00

  

Ndongo Licence Area

The Ndongo Project covers an area of 295km2, having been augmented by the addition of two exploration licence areas from Kinross Gold in August 2017.

The licence area 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 major gold discoveries, including the Company’s Namdini Gold Project with 6.5 Moz Au Indicated and 0.5 Moz Au Inferred Mineral Resources, the Shaanxi Mine, the historic Nangodi Gold Mine and the 2.1 Moz Youga Gold Mine in Burkina Faso, adjacent to the Ghana border.  In addition, there are numerous historic shallow artisanal workings along many parts of this shear zone ~15 km north of the Namdini Gold Project.

The company’s initial exploration on its original licence areas mainly comprised soil sampling that focused on four prospect areas: Ndongo West, Ndongo Central, Ndongo East and Ndongo Far East. The acquisition of licences formerly owned by Kinross (via its acquisition of Red Back Mining) in 2017 increased the company’s exposure to the prospective Nangodi Shear Zone, including areas around the historical Nangodi mine, which is reported to have produced approximately 18,000oz from a high-grade underground operation in the 1930s. The ground acquired from Kinross has been the subject of previous drilling, particularly along the Nangodi Shear Zone. The acquisition of this ground also included the results of more than 120 historic RC and DD holes.

Recent work has included an auger soil geochemical and a ground magnetic survey, the results of which included the identification of a significant anomaly within a dilation zone at the southern end of the Palungu granitoid intrusive in the south of the licence area. Scout drilling in the area has included limited RC and DD drilling.

Targets are currently being prioritised and a follow-up drilling programme is planned to commence in the short term.

Ndongo Prospecting License showing local prospects and auger soil geochemistry

Ndongo Prospecting License – Drilling Results

Cardinal’s first pass shallow RC drilling was designed to test one of the six coincident gold-in-soil and geophysical targets on the Ndongo.

 

Highlights

  • RC drilling returned several shallow gold intersections from the first of six targets to be drilled including:
    • NDRC130: 24m at 1.2 g/t Au from 2m, and 14m at 1.4 g/t Au from 46m
    • NDRC131: 9m at 11.5 g/t Au from surface (includes 3m at 29.8 g/t Au)
    • NDRC134: 4m at 1.2 g/t Au from 20m
    • NDRC137: 8m at 1.4 g/t Au from 1m
  • The results support the potential for discovery of gold mineralisation within the Ndongo License, located approximately 15 km north of Cardinal’s Namdini Gold deposit which currently contains 6.5 Moz Au Indicated and 0.5 Moz Inferred Mineral Resources.
  • Prospectivity of the area is enhanced due to its proximity to the prolific Nangodi Shear Zone which is known to host major economic gold mineralisation in northeast Ghana and Burkina Faso
  • Geological mapping, surface rock sampling, trenching and geophysical surveys are being performed by field crews to help identify new targets and refine existing targets

Infill and extensional drilling with both RC and DD rigs to target the strike and dip extensions of the mineralisation are being planned which remains open.

Gold mineralisation has initially been located within an area of ~200m strike length by ~100m width within the larger Target A area which has a strike length of ~12km and a width of ~1.5km.  At this early stage, mineralisation appears to be open along strike and at depth with further drilling planned.

The target area was originally highlighted following a soil sampling programme by AfricWest in 1997 and Etruscan Resources in 2007.  A number of shallow high-grade gold intersections were returned from RAB drilling completed by Etruscan Resources in 2008.  The results from the historical Etruscan Resources RAB drilling include:

 

 

o   NRB-08-399: 7.5m at 1.8 g/t Au from 33m

o   NRB-08-400: 19.5m at 1.2 g/t Au from 6m

Note: All the historical RAB drill data was collected by Etruscan Resources Ghana Limited, now part of Endeavour Mining Corporation (For details, refer to TSX announcement by ABZU Gold on 23 January, 2013 entitled “ABZU Gold Announces Drilling Mobilisation For 2013, Targets Additional Satellite Gold Mineralisation at Zupeliga”).
o   NRB-08-404: 21.0m at 2.3 g/t Au from 6m

o   NRB-08-409: 18.0m at 3.4 g/t Au from surface

Ndongo Prospecting License – Target A – Prospect Zupeliga South

Target A was previously named Ndongo West prior to the acquisition of the surrounding Kinross ground. Numerous gold-in-soil anomalies, RAB drilling, shallow artisanal diggings and several deeper artisanal shafts all indicated the gold-bearing potential of this recently acquired area.

Ndongo Prospecting License – Target Areas Over Geology
Ndongo Prospecting License – Target Areas Over Magnetics

At Ndongo West, Gradient Array IP (“GAIP”) and ground magnetic surveys identified a very well-developed contact zone between conductive and resistive units, along which the artisanal shafts are located.

Once the former Kinross ground was added to Ndongo West, this extended the Target A strike length to 12 km and 1.5 km width and is now called Zupeliga South Prospect.

The prospect is underlain by weak to strongly magnetic mafic-ultramafic volcanic units which are intruded locally by granodiorite.  The volcanic units are altered containing pyrite, minor pyrrhotite, magnetite, minor arsenopyrite and silica.

The geology of this prospect is more complex as folding has been identified with the fold axis orientated ~020⁰, and the rock units striking ~300⁰ and dipping north at ~60⁰.  The structures imply open anticlinal folds although plunges have yet to be determined.

Gold of variable grades is found within highly magnetised mafic volcanic horizons with disseminated sulphides and cross-cutting pyrite and smoky quartz veinlets.  Higher gold grades occur within a sheared, less magnetic and siliceous altered inner zone within the magnetic corridor which also has cross-cutting pyrite and quartz veinlets.

Gold mineralisation has initially been located within an area of ~200 m strike length by ~100 m width within the larger Target A area which has a strike length of ~12 km and a width of ~1.5 km.  At this early stage, mineralisation appears to be open along strike, especially along the fold axes, and at depth with further drilling planned to evaluate the two limbs of the anticlines.

Prospect Zupeliga South – Plan View – Interpretive Geology and Location of Cross Section Lines (Yellow Histograms are Historical values drilled by Etruscan Resources Ghana Ltd)
Prospect Zupeliga South – Cross Section (Section Line A-A¹)
Prospect Zupeliga South – Cross Section (Section Line B – B¹)

CARDINAL’S GHANA PROJECTS

BOLGATANGA: Ghana
SUBRANUM: Ghana