Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Cardinal Resources (ASX, TSX: CDV) announced Monday that its Namdini mining licence has officially received sovereign parliamentary ratification in Ghana.
“This ratification and the recent issuing of the Environmental Protection Agency (EPA) permit, along with our water extraction permit and relocation action plan approval, places the Namdini gold project into an extremely secure and solid position for development,” Cardinal CEO and managing director Archie Koimtsidis said in a press release.
The expanded license is granted for an initial period of 15 years beginning in 2020 and is renewable
A large-scale mining license covering the Namdini project was granted to Cardinal by Ghana’s Minister for Lands and Natural Resources in 2017. It originally covered 19 square kilometres in the Dakoto area of the Talensi District in the Upper East Region of Ghana, and has now been expanded to 63 square kilometres, the maximum allowable.
The expanded license is granted for an initial period of 15 years commencing in 2020 and is renewable. This expansion would allow the company to improve and de-risk mine and infrastructure design and optimize financial outcomes, Cardinal said.
A feasibility study on the Namdini project last year estimated that it would produce about 4.2 million ounces of gold over a mine life of 15 years, with an estimated 1.1 million ounces expected over the first three years of the operation. The development cost was estimated at $390 million.
Meanwhile, the recently launched takeover offer by Russia’s Nordgold is currently being “considered in detail” by the board, Cardinal said. The Australia-based miner also has an offer from Shandong Gold Mining, one of China’s biggest gold producers.
