Cardinal Hits More High‐Grade Shallow Gold at Ndongo East

Highlights                     

• Today’s high‐grade gold intersection from Ndongo East includes:

• 14m @ 7.0 g/t Au from 69m in NDDD046 (including 2m @ 42.2g/t from 80m)

• Previous high‐grade gold intersections from Ndongo East included:

• 9m @ 23.3 g/t Au from 60m in NDRC248*
• 7m @ 4.4 g/t Au from 14m in NDRC216*
• 6m @ 12.6 g/t Au from 2m in NDRC275*
• 3m @ 29.3 g/t Au from 45m in NDDD036*

      *Refer to press releases dated 16 July 2018 and 29 August 2018 on Ndongo East

• Gold mineralisation demonstrated over a strike length of approximately 2km at Ndongo East;
• Drilling has encountered multiple intercepts of near‐surface mineralisation;
• Drilling is ongoing and will continue to evaluate the strike and depth extension of the Ndongo East mineralised system;
• Additional parallel mineralised structures striking NE‐SW remain to be evaluated by drilling and provide high priority drill targets;

Cardinal Resources Limited (ASX/TSX: CDV) (“Cardinal” or “the Company” http://www.commodity-tv.net/c/search_adv/?v=298369) is pleased to announce that first drilling results following the recent wet season have commenced, intersecting further high‐grade and shallow gold mineralisation at the new Ndongo East discovery.  Importantly, the Ndongo Prospecting License is located only 24km north of the Company’s Namdini Gold Project for which Cardinal declared a Maiden Probable Ore Reserve of 4.76Moz on the 18 September 2018 (Figure 1).

On 16 July and 29 August 2018, Cardinal reported several intersections of high‐grade gold at its new Ndongo East discovery within the Ndongo Prospecting License and has now intersected further high‐grade gold in recently completed diamond drilling which has recently re‐commenced following the wet season. It is planned to steadily ramp up exploration as ground conditions improve and drilling results are interpreted.

Cardinal’s Chief Executive Officer / Managing Director, Archie Koimtsidis commented:

“We are increasingly encouraged at how Ndongo East is evolving. This new discovery has the potential to add further high‐grade gold ounces to our Maiden Probable Ore Reserve of 4.76Moz within the Namdini Gold Project located 24km to the south.

“The Ndongo East discovery is particularly encouraging with the initial 450m strike length of strong, shallow gold mineralisation still open along strike and at depth (Figures 2 and 3).

“Beyond this initial mineralised zone, a further 750m of gold mineralisation has been intersected along strike towards the south west, which appears to be extending the overall gold mineralisation of the Ndongo East discovery to approximately 1.2km (Figure 2).

“The Ndongo East prospect lies within a larger target area of approximately 7km in length that has yet to be drill tested. We have now recommenced drilling after the 2018 wet season with further results pending”.

Ndongo Prospecting License

The Ndongo Prospecting License covers an area of 295 km² and 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 gold discoveries, including the Company’s Namdini Gold Project with a 4.76Moz Probable Reserve, the Shaanxi Gold Mine, the historic Nangodi Gold Mine and the 2.1 Moz Youga Gold Mine in Burkina Faso, adjacent to the Ghanaian border. In addition, there are numerous historic shallow artisanal workings along many parts of this shear zone ~15 to 25 km north of the Namdini Gold Project (Figure 1).

Ndongo East Prospect

The Ndongo East Prospect is located within NE‐SW trending Birimian metavolcanics and metasediments. Gold mineralisation is developed mostly along diorite‐granodiorite contact zones where competency contrasts create brittle fracturing allowing the ingress and precipitation of gold mineralising fluids (Figures 2 and 3). The mineralised horizons contain variable chlorite‐silica‐carbonate‐sericite alteration with sulphides (mainly pyrite with very minor arsenopyrite).

Previously announced drilling intersected higher‐grade mineralised structures concentrated in the northern portion of the shear zone, over a 450m strike length with coincident gold‐in‐soil and geophysical targets. Subsequent RC drilling along fence lines further to the southwest along strike and at depth to test for mineralisation has proven encouraging with further high‐grade intercepts within the mineralised structures. This indicates that the mineralised system is open along a NE‐SW strike and at depth with multiple mineralised intersections. The furthest drill fence to the southwest intersected 2m at 27.0 g/t Au from 10m downhole in NDRC247 which suggests a strike potential up to 1.2km of mineralised structures. (refer to Cardinal’s ASX/TSX Press Release 29 August 2018 “Cardinal Extends Ndongo East Discovery Strike Length”).

Additional diamond drilling is continuing at Ndongo East to test the strike and depth extents of the mineralised system and to evaluate the structural components of the various lithological units.

Drill holes for this release are detailed in Schedule 1, Tables 1 and 2 below.

ABOUT CARDINAL

Cardinal Resources Limited (ASX/TSX: CDV) is a West African gold‐focused exploration and development Company that holds interests in tenements within Ghana, West Africa.

The Company is focused on the development of the Namdini Project with a Maiden Ore Reserve of 4.76Moz and is now advancing the feasibility study.

Exploration programmes are also underway at the Company’s Bolgatanga (Northern Ghana) and Subranum (Southern Ghana) Projects.

Cardinal confirms that it is not aware of any new information or data that materially affects the information included in its announcement of the Maiden Ore Reserve of 18 September 2018. All material assumptions and technical parameters underpinning this estimate continue to apply and have not materially changed.

Competent Person’s / Qualified Person’s Statement

The information in this press release is based on information prepared by Mr. Paul Abbott, a full-time employee of Cardinal Resources, who is a member of the Geological Society of South Africa. Mr. Abbott has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and the activity which he is undertaking to qualify as a Competent Person, as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.

The information in this press release has been compiled and reviewed by Mr. Richard Bray, a Registered Professional Geologist with the Australian Institute of Geoscientists and Mr. Ekow Taylor, a Chartered Professional Geologist with the Australasian Institute of Mining and Metallurgy.  Mr. Bray and Mr. Taylor have more than five years’ experience relevant to the styles of mineralisation and type of deposits under consideration and to the activity which is being undertaken to qualify as a Competent Person, as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” and as a Qualified Person as defined by the NI43-101 instrument.  Mr. Bray and Mr. Taylor are full-time employees of Cardinal and hold equity securities in the Company.  Mr. Bray and Mr. Taylor have consented to the inclusion of the matters in this report based on the information in the form and context in which it appears.

Disclaimer

This ASX / TSX press release has been prepared by Cardinal Resources Limited (ABN: 56 147 325 620) (“Cardinal” or “the Company”).  Neither the ASX or the TSX, nor their regulation service providers accept responsibility for the adequacy or accuracy of this press release.

This press release contains summary information about Cardinal, its subsidiaries and their activities, which is current as at the date of this press release.  The information in this press release is of a general nature and does not purport to be complete nor does it contain all the information, which a prospective investor may require in evaluating a possible investment in Cardinal.

By its very nature exploration for minerals is a high‐risk business and is not suitable for certain investors.  Cardinal’s securities are speculative.  Potential investors should consult their stockbroker or financial advisor.  There are a number of risks, both specific to Cardinal and of a general nature which may affect the future operating and financial performance of Cardinal and the value of an investment in Cardinal including but not limited to economic conditions, stock market fluctuations, gold price movements, regional infrastructure constraints, timing of approvals from relevant authorities, regulatory risks, operational risks and reliance on key personnel and foreign currency fluctuations.

Except for statutory liability which cannot be excluded and subject to applicable law, each of Cardinal’s officers, employees and advisors expressly disclaim any responsibility for the accuracy or completeness of the material contained in this press release and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this Announcement or any error or omission here from. Except as required by applicable law, the Company is under no obligation to update any person regarding any inaccuracy, omission or change in information in this press release or any other information made available to a person nor any obligation to furnish the person with any further information.  Recipients of this press release should make their own independent assessment and determination as to the Company’s prospects, its business, assets and liabilities as well as the matters covered in this press release.

Forward‐looking statements

Certain statements contained in this press release, including information as to the future financial or operating performance of Cardinal and its projects may also include statements which are ‘forward‐looking statements’ that may include, amongst other things, statements regarding targets, anticipated timing of the feasibility study (FS) on the Namdini project, estimates and assumptions in respect of mineral resources and anticipated grades and recovery rates, production and prices, recovery costs and results, capital expenditures and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. These ‘forward – looking statements’ are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Cardinal, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies and involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward‐looking statements.

Cardinal disclaims any intent or obligation to update publicly or release any revisions to any forward‐looking statements, whether as a result of new information, future events, circumstances or results or otherwise after today’s date or to reflect the occurrence of unanticipated events, other than required by the Corporations Act and ASX and TSX Listing Rules. The words ‘believe’, ‘expect’, ‘anticipate’, ‘indicate’, ‘contemplate’, ‘target’, ‘plan’, ‘intends’, ‘continue’, ‘budget’, ‘estimate’, ‘may’, ‘will’, ‘schedule’ and similar expressions identify forward‐looking statements.

All forward‐looking statements made in this press release are qualified by the foregoing cautionary statements. Investors are cautioned that forward‐looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward‐looking statements due to the inherent uncertainty therein.

To view entire news release, please follow the link:

https://www.asx.com.au/asxpdf/20190123/pdf/44211kgl1m7v4l.pdf