Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Cardinal Resources pulls up more wide gold hits, flags Namdini depth potential

New diamond core drilling at Cardinal Resources' (ASX:CDV) rapidly developing Namdini project in Ghana has returned a 133.7-metre-long intersection from only 3 metres of depth grading 1.6% gold.

The work confirmed a 215-metre-wide zone of gold mineralisation at the site, with another standout intercept recording 87 metres at 1.08 g/t gold from 28 metres vertical depth.

These results have helped underline the company's understanding of the geological setting at Namdini, which includes hydrothermally altered volcaniclastics and monzonite granitoids.

The highly altered rocks contain disseminated gold-bearing sulphides and are distinguished from the grey, unaltered, unmineralised host rocks by characteristic pale to medium green colours.

The latest drill hits build on a string of exploration successes demonstrating widespread occurrences of broadly gold mineralised intersections at the project, which now boasts a total strike length of about 900 metres.

Volcaniclastics have been found to be well mineralised for more than 100 metres across strike.

This is significant because so far, drilling at Namdini has indicated that the volcaniclastics generally contain higher gold grades than the granitoids.

Wide gold zones

Today's drilling results follow only a week after Cardinal encountered wide intersections of gold mineralisation from about 120 metres to 230 metres across strike.

The intersections were recorded from surface to very shallow depths, with standout intersections including:

- 83 metres at 1.41 g/t gold from 13 metres vertical depth
- 67 metres at 1.78 g/t gold from surface
- 51 metres at 1.02 g/t gold from 35 metres vertical depth
- 48 metres at 1.15 g/t gold from 19 metres vertical depth

Cardinal drilled its maiden diamond hole at the project last month on the heels of exploration results including 99 metres at 1.21g/t gold from surface; 83 metres at 1.41g/t gold from 14 metres; and 67 metres at 3.10g/t gold from 3 metres.

The first diamond hole resulted in the discovery of 231 metres of sulphide-bearing volcaniclastic rock unit from 13 metres. There was also 64 metres of sulphide bearing quartz diorite rock unit from 244 metres.

This find was interpreted as possibly representing an additional mineralised zone of up to 64 metres from 244 metres down hole to 308 metres.

Analysis

These new drilling results confirm the significant depth potential of Namdini's wide, increasingly well established gold mineralisation.

An intercept of more than 130 metres at 1.6 g/t gold is an outstanding result, especially considering that Namdini is still very much in the early stages of development.

Such promising results at this early stage in the project suggest important upside for Cardinal stock, which has gained more than 300% in value over the calendar year to its latest rate of A$0.165.

This share price traction, along with the value-driving exploration work at Namdini, has attracted the interest of market watchers, including Perth broker Hartleys, which gave Cardinal stock a target price of $0.27 earlier this week.

Importantly, the prospect of continued exploration success is supported by the fact that Cardinal is the owner and operator of its own drill rig.

This has allowed the explorer to establish an express assaying service with its drilling results, which in turn enables continuous improvement of the drill strategy as new information becomes available.

This ability to explore more nimbly than many other junior companies may translate into significant time and financial advantages as Cardinal proves up its ground in the region.

Future price catalysts for the company may manifest in the continued drilling of selective holes and a highly anticipated resource announcement.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.