Cardinal Resources : 99m Gold Zone Cyanide Leach Results from Namdini

Hole ID

Depth (m)

Grade (g/t)

Material

NMRC452‐770

2‐3

0.95

Oxide

NMRC452‐770

3‐4

0.75

Oxide

NMRC452‐770

5‐6

0.66

Oxide

NMRC452‐770

46‐47

1.10

Fresh

NMRC452‐770

66‐67

10.23

Fresh

NMRC452‐770

85‐86

0.99

Fresh

NMRC452‐770

89‐90

1.00

Fresh

NMRC452‐770

91‐92

2.65

Fresh

Criteria

JORC Code Explanation

Commentary

Sampling

techniques

Nature and quality of sampling (eg cut channels, Nature and quality of sampling is carried out under

random chips, or specific specialised industry QA/QC procedures as per industry standards. No standard measurement tools appropriate to the standards or blanks were inserted as these samples minerals under investigation, such as down hole were for metallurgical testing.

gamma sondes, or handheld XRF instruments, etc).

These examples should not be taken as limiting the broad meaning of sampling.

Sampling

techniques

Include reference to measures taken to ensure Sample representivity is ensured through a 3 tier riffle

sample representivity and the appropriate splitter, as it provides an unbiased sample. calibration of any measurement tools or systems

used.

Sampling

techniques

Aspects of the determination of mineralisation The determination of mineralisation is not yet known.

that are Material to the Public Report.

Sampling

techniques

In cases where 'industry standard' work has been Industry standard reverse circulation drilling was

done this would be relatively simple (eg 'reverse used to obtain 1m samples from which 2.3 kg was circulation drilling was used to obtain 1 m crushed and a split pulverised to produce 3 x 50 g samples from which 3 kg was pulverised to charges for fire assay (assayed in triplicate).

produce a 30 g charge for fire assay'). In other

cases more explanation may be required, such as Separately a 2 kg pulverized sample was cyanide

where there is coarse gold that has inherent leached over 24 hours by bottle roll method. sampling problems. Unusual commodities or

mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

Drilling techniques Drill type (eg core, reverse circulation, open‐hole Reverse Circulation drilling with a standard tube,

hammer, rotary air blast, auger, Bangka, sonic, etc) Remet 5½ inch Hard Face (face‐sampling) button

and details (eg core diameter, triple or standard drilling bit. tube, depth of diamond tails, face‐sampling bit or

other type, whether core is oriented and if so, by what method, etc).

Drill sample

recovery

Method of recording and assessing core and chip Method of recording and assessing chip samples was

sample recoveries and results assessed. on a hand held Motion F5te Tablet PC using a set of standard templates supplied by Maxwell Geoservices, Perth (Maxwell).

Drill sample

recovery

Measures taken to maximise sample recovery and The measures taken to maximize sample recovery are

ensure representative nature of the samples. through a cyclone and a 3 tier riffle splitter. This method ensures maximum sample recovery and an unbiased representative sample to be assayed.

Drill sample

recovery

Whether a relationship exists between sample No relationship is known to exist between sample

recovery and grade and whether sample bias may recovery and grade, and no sample bias may have

have occurred due to preferential loss/gain of occurred due to preferential loss/gain of any fine/coarse material. fine/coarse material.

Logging

Whether core and chip samples have been Chip samples have been geologically logged to a level

geologically and geotechnically logged to a level of of detail to support appropriate future Mineral

detail to support appropriate Mineral Resource Resource estimations. estimation, mining studies and metallurgical

studies.

Logging

Whether logging is qualitative or quantitative in Logging is quantitative. Chip samples are

nature. Core (or costean, channel, etc) photographed in dry and wet forms. photography.

Criteria

JORC Code Explanation

Commentary

The total length and percentage of the relevant All holes are logged in full.

intersections logged.

Sub‐sampling

techniques and

sample preparation

If core, whether cut or sawn and whether quarter, No core has been drilled.

half or all core taken.

Sub‐sampling

techniques and

sample preparation

If non‐core, whether riffled, tube sampled, rotary The sub‐sampling technique is with a 3 tier riffle

split, etc and whether sampled wet or dry. splitter, and sampled dry.

Sub‐sampling

techniques and

sample preparation

For all sample types, the nature, quality and Sample preparation is completed at SGS

appropriateness of the sample preparation Laboratories, Ouagadougou, Burkina Faso. All

technique. preparation equipment is flushed with barren material prior to the commencement of sample preparation. The entire sample is dried, crushed and pulverised in a LM2 grinding mill to 85% passing a 75 micron size fraction screen.

METALLURGICAL TESTS: An approximate 200 gram sub‐sample split was taken for three fire assays by

standard procedures with an AAS finish to 10 ppb lower detection limit.

The remaining pulverized samples were bottle rolled for 24 hours with an AAS finish to 1 ppb lower detection limit

Sub‐sampling

techniques and

sample preparation

Quality control procedures adopted for all sub‐ Quality control procedures adopted for all sub‐

sampling stages to maximise representivity of sampling stages to maximize representivity of samples. samples.

Sub‐sampling

techniques and

sample preparation

Measures taken to ensure that the sampling is Measures taken to ensure that the sampling is

representative of the in situ material collected, representative of the in situ material collected is by including for instance results for field referring to the original logs of this material. duplicate/second‐half sampling.

Sub‐sampling

techniques and

sample preparation

Whether sample sizes are appropriate to the The sample sizes are considered appropriate to give

grain size of the material being sampled. an accurate indication of gold mineralisation.

Quality of Assay The nature, quality and appropriateness of the FIRE ASSAY: The pulverized rock sample is weighed

data and assaying and laboratory procedures used and and mixed with flux and fused using lead oxide at laboratory tests whether the technique is considered partial or 1,100°C, followed by cupellation of the resulting lead total. button (Dore bead). The bead is digested using 1:1

HNO₃ and HCl and the resulting solution is submitted for analysis.

The digested sample solution is aspirated into the Flame Atomic Absorption Spectrometer (AAS), aerosolised, and mixed with the combustible gas, acetylene and air. The mixture is ignited in a flame whose temperature ranges from 2,100 to 2,800⁰C. During combustion, atoms of the gold in the sample are reduced to free, unexcited ground state atoms, which absorb light. Light of the appropriate wavelength is supplied and the amount of light absorbed can be measured against a standard curve.

Results have a lower gold detection limit of 10 ppb. The AAS equipment is calibrated with each job.

The analytical technique is industry standard fire

Criteria

JORC Code Explanation

Commentary

assay which is considered to be a total digest of gold.

BLEG BOTTLE ROLL: 2 kg of pulverized material is bottle rolled with sodium cyanide and lime in a plastic bottle for 24 hours. The bottle is removed from the roller and allowed to settle. An aliquot of the clear solution is taken and DIBK/1% Aliquat 336 is added and shaken. The sample is aspirated into the AAS (same method as for fire assay above). Results have a lower detection limit of 1 ppb.

The analytical technique is industry standard bottle roll which is considered to be a total digest of free gold.

For geophysical tools, spectrometers, handheld No hand held geophysical tools are used.

XRF instruments, etc, the parameters used in

determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

Nature of quality control procedures adopted (eg Sample preparation checks for fineness are carried

standards, blanks, duplicates, external laboratory out by the laboratory as part of their internal

checks) and whether acceptable levels of accuracy procedures to ensure the grind size of 85‐90% (ie lack of bias) and precision have been passing a 75 micron screen is being attained. The established. samples had 90% passing a 75 micron screen, which is acceptable. Laboratory QA/QC involves the use of

internal lab standards using certified reference material and blanks.

External laboratory checks are done on a three monthly basis through Laboratories Quality Services International (LQSI). Recent LQSI checks of Fire Assay analyses on Low Grade Oxide Material produced acceptable levels of accuracy and precision.

Verification of

sampling and assaying

The verification of significant intersections by The verification of significant intersections by either

either independent or alternative company independent or alternative company personnel has personnel. not occurred.

Verification of

sampling and assaying

The use of twinned holes. There has been no use of twinned holes.

Verification of

sampling and assaying

Documentation of primary data, data entry Primary data was collected on a hand held Motion

procedures, data verification, data storage F5te Tablet PC using a set of standard templates

(physical and electronic) protocols. supplied by Maxwell Geoservices, Perth (Maxwell).

Daily data was synchronised and digitally captured by

Maxwell for validation and compilation into Excel and Access spreadsheets and stored on the Cardinal servers located in Bolgatanga, Ghana, West Africa.

Verification of

sampling and assaying

Discuss any adjustment to assay data. No adjustments were made to assay data.

Location of data

points

Accuracy and quality of surveys used to locate drill Accuracy of drill hole collar surveys is +/‐ 3m using a

holes (collar and down‐hole surveys), trenches, hand held Garmin GPSmap 62s GPS.

mine workings and other locations used in Mineral

Resource estimation.

Location of data

points

Specification of the grid system used. WGS84 Sector 30N, with local grid baseline at 010⁰

True North and lines at 50m to 100m intervals and

Criteria

JORC Code Explanation

Commentary

stations at 50m along lines.

Quality and adequacy of topographic control. The quality and adequacy of topographic control is +/‐

3m using a hand held Garmin GPSmap 62s GPS.

Data spacing and

distribution

Data spacing for reporting of Exploration Results. Data spacing is 50‐100m (northing) and 50m (easting).

Data spacing and

distribution

Whether the data spacing and distribution is The data spacing and distribution is considered to be

sufficient to establish the degree of geological sufficient to establish a degree of geological and and grade continuity appropriate for the Mineral grade continuity appropriate for the Mineral Resource and Ore Reserve estimation Resource and Ore Reserve estimation procedure(s) procedure(s) and classifications applied. and classifications applied.

Orientation of data

in relation to geological

structure

Whether sample compositing has been applied. No sample compositing has been applied.

Orientation of data

in relation to geological

structure

Whether the orientation of sampling achieves The orientation of sampling achieves unbiased

unbiased sampling of possible structures and the sampling of possible structures as drilling is extent to which this is known, considering the orientated normal to the dip and foliation of the deposit type. deposit.

Orientation of data

in relation to geological

structure

If the relationship between the drilling orientation No orientation based sampling bias has been

and the orientation of key mineralised structures is identified in the data to date. considered to have introduced a sampling bias,

this should be assessed and reported if material.

Sample security The measures taken to ensure sample security. The measures taken to ensure sample security are

through an independent Ghanaian security

contractor. Samples are stored at Cardinal's base camp located at Bolgatanga, Ghana, West Africa under security until collected by SGS Laboratories and transported to their Ouagadougou laboratory in Burkina Faso.

Audits or reviews The results of any audits or reviews of sampling Sampling techniques are of industry standards. Data is

techniques and data. audited by Maxwell Geoservices (Perth), who have not made any other recommendations.

Criteria

JORC Code Explanation

Commentary

Mineral Tenement

and Land Status

Type, name/reference number, location and The Namdini Mining Licence is located in NE Ghana.

ownership including agreements or material issues Namdini Mining Limited (NML) holds the mining with third parties including joint ventures, licence. NML signed a Heads of Agreement with

partnerships, overriding royalties, native title Savannah Mining Ltd (Savannah) to provide "Mining interests, historical sites, wilderness or national Support" services to NML. Savannah has signed a park and environmental settings. Heads of Agreement with Cardinal Mining Services Ltd (CMS) to provide "Mining Support" services in

relation to the Namdini Mining Licence.

Mineral Tenement

and Land Status

The security of the tenure held at the time of There are no known impediments to offer "Mining

reporting along with any known impediments to Support" services to Namdini Mining Limited within obtaining a licence to operate in the area. the Namdini Mining licence area.

Exploration Done Acknowledgment and appraisal of exploration by No previous systematic exploration has been

by Other Parties other parties. undertaken.

Criteria

JORC Code Explanation

Commentary

Geology Deposit type, geological setting and style of The deposit type comprises gold mineralisation within

mineralisation sheared and highly altered rocks containing sulphides

(pyrite and arsenopyrite).

The geological setting is a Paleoproterozoic Greenstone Belt comprising Birimian metavolcanics, volcaniclastics & metasediments located in close proximity to a major 30 km ~N‐S regional shear zone with splays.

The style of mineralisation is hydrothermal alteration containing disseminated gold‐bearing sulphides

Drill hole

information

A summary of all information material to the Samples have been selected from a previously

understanding of the exploration results including announced drill hole (see ASX announcement 02 July tabulation of the following information for all 2015)

Material drill holes:

• Easting and northing of the drill hole collar

• Elevation or RL (Reduced Level - elevation above sea level in meters) of the drill hole collar

• Dip and azimuth of the hole

• Down hole length and interception depth

• Hole length

Drill hole

information

If the exclusion of this information is justified on There has been no exclusion of information.

the basis that the information is not Material and

this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

Data aggregation

methods

In reporting Exploration Results, weighting No weighting averaging techniques nor cutting of high

averaging techniques, maximum and/or minimum grades have yet been undertaken.

grade truncations (e.g. cutting of high grades) and cut‐off grades are usually Material and should be stated.

Data aggregation

methods

Where aggregated intercepts incorporate short No aggregated intercepts were done as these were

lengths of high grade results and longer lengths of individual samples for metallurgical testing. low grade results, the procedure used for such

aggregation should be stated and some typical examples of such aggregations should be shown in detail.

Data aggregation

methods

The assumptions used for any reporting of metal No metal equivalent values were used for this report.

equivalent values should be clearly stated.

Relationship

between

mineralisation widths and intercept lengths

These relationships are particularly important in The relationship between mineralisation widths and

the reporting of exploration results. intercept lengths is not yet known.

Relationship

between

mineralisation widths and intercept lengths

If the geometry of the mineralisation with respect The geometry of the mineralisation with respect to the

to the drill hole angle is known, its nature should drill hole angle is not yet known. be reported.

Relationship

between

mineralisation widths and intercept lengths

If it is not known and only the down hole lengths Only down hole lengths are reported and true widths

are reported, there should be a clear statement to of mineralisation are not yet known. this effect (e.g. 'down hole length, true width not

known').

Criteria

JORC Code Explanation

Commentary

Diagrams Appropriate maps and sections (with scales) and Appropriate plan map and section are included in this

tabulations of intercepts should be included for announcement.

any significant discovery being reported. These should include, but not be limited to a plane view of drill hole collar locations and appropriate sectional views.

Balanced Reporting Where comprehensive reporting of all Exploration Samples were selected from oxide and fresh material

Results is not practical, representative reporting of types within mineralised monzonite granitoid zones

both low and high grades and/or widths should be and are contained within this announcement. practiced to avoid misleading reporting of

Exploration Results.

Other substantive Other exploration data, if meaningful and material, Samples selected for metallurgical testing are

exploration data should be reported including (but not limited to): contained in this announcement (Table 1).

geological observation; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

Further Work

The nature and scale of planned further work (e.g. Further metallurgical test work is planned in

tests for lateral extensions or depth extensions or conjunction with further RC and diamond drilling. large - scale step - out drilling).

Further Work

Diagrams clearly highlighting the areas of possible Future drilling will be planned within the newly

extensions, including the main geological acquired licences (Figure 3).

interpretations and future drilling areas, provided this information is not commercially sensitive.