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Cardinal Resources Ltd's hints at large gold discovery in Ghana

Cardinal Resources Ltd (ASX:CDV) could be on the cusp of a large gold discovery in Ghana, as the latest accelerated drilling results continue to deliver broad zones of mineralisation.

Macquarie Bank holds over 5% of the stock, with US Global Investors holding the same. Cardinal directors have 'skin in the game', with a circa 10% holding.

The Cardinal board includes the experienced Mark Connelly as chairman. Connelly is the ex-managing director for Papillion Resources.

Cardinal recently raised $5.4 million in an oversubscribed placement to a broad range of domestic and international institutional and high net worth investors.

85.4 metres at 1.51g/t gold

Highlights from the latest two diamond drill holes at the Namdini Project include (NMDD364-743 and NMDD365-720): 85.4 metres at 1.51g/t gold from a 46 metre vertical depth.

This is supported by: 20.27 metres at 1.37g/t gold from a 132 metre vertical depth; and 17.3 metres at 1.18g/t gold from a 3 metre vertical depth.

Last month, Cardinal discovered visible gold drilling, which was within a 2 metre intercept at 137g/t gold.

Other recent highlights include: 45 metres at 7.73 g/t gold and 35.3 metres at 3.65 g/t gold.

Of note, the 45 metre hit is part of a much larger mineralised zone of 358 metres and the 35.3 metre intersection is also within a much larger mineralised zone of 306 metres.

These wide intersections hint at the potential for a multi-million ounce gold deposit.

Namdini potential

Every hole drilled since discovery has intersected wide-zones of gold mineralisation, with previous high grade intervals such as:

- 67 metres at 3.10g/t gold from 3 metres;
- 51 metres at 3.58g/t from 85 metres; and
- 45 metres at 7.73g/t from 168 metres.

Adding further, Namdini has wides zones of mineralisation of over 300 metres, open in all directions.

The initial metallurgy is very positive, while also being well positioned with power, water, and a sealed highway nearby, and low population density.

Next steps

Drill hole NMDD365-720 confirms the continuation of the mineralised volcaniclastics with depth, which is very encouraging.

Cardinal is currently drilling hole NMRD479-779.

On completion of the current drill hole, the next drill hole will be located 100 metres north along strike at NMRD500-788

As part of the planned drilling, Cardinal will also drill deeper diamond holes.

These holes are anticipated to confirm further depth extensions to the gold mineralisation already identified within the Namdini Project.

Analysis

The latest wide intersections at Namdini hint at the potential for a multi-million ounce gold deposit.

With each hole drilled since discovery, intersecting wide-zones of gold mineralisation, it is easy to see why there are such "wraps" on Cardinal and the share price has risen 36%.

Recently, the company appointed Mark Connelly as the company's non-executive chairman.

Connelly is the former managing director and CEO of Papillon Resources, a Mali-based gold developer which recently merged with B2Gold Corp in a US$570 million deal.

News flow and price catalysts:

- Regular news flow will continue from the on-going diamond drilling program.

- A ground geophysical program to commence aimed at identifying drill targets beyond the current discovery.

- Initial exploration target expected to be estimated in Q3 2016.

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