Cardinal Resources September Quarterly Activities and Cashflow Report

Perth - Cardinal Resources Ltd. (ASX:CDV) ("Cardinal" or "the Company"), an African gold focused exploration company, is pleased to present to shareholders its Quarterly Activities report for the period ended 30 September 2016. Currently Cardinal holds four tenements within the Bolgatanga Project, with Subranum comprised of a single tenement in central Ghana (see Figure 1 in the link below).

HIGHLIGHTS

- Infill drill holes continue to intersect wide mineralised zones at Namdini Project  

- Shallow updip drill holes at Namdini planned for Q4 2016

- 3 drills now onsite operating 24/7

- Further exploration planned around the Namdini orebody

- Further exploration planned within the Bolgatanga and Subranum Projects

Commenting on the quarter's activities, Managing Director Archie Koimtsidis said:  

"We are further encouraged by continued intersections of wide gold mineralisation reported during Q3 from the drilling within the Namdini Project (see Figure 3 in the link below).

"These gold intersections continue to confirm and enhance the gold potential of this project.

"We are looking forward to the commencement of the planned exploration programme which will begin with shallow first pass Auger drilling to test the larger Namdini Project area and also target areas within the Bolgatanga and Subranum Projects."

NAMDINI PROJECT

The Namdini tenement is located ~12 km SE from Cardinal's Ndongo Prospect (see Figure 2 in the link below).

Drilling  and Sampling Summary  

Infill diamond,reverse circulation (RC) with diamond tails and RC drilling continued at the Namdini Project during this quarter (see Figure 3 in the link below).  

Total drilling for the quarter comprised of 20 drill holes totalling 2,914.82m, with a combined total of 2,296 samples for fire assay, including duplicates, blanks and standards (see Table 1 in the link below).

Namdini Drilling

Drilling at Namdini comprised of 3 diamond drill holes and 3 Reverse Circulation (RC) drill holes with diamond tails (see Figure 3 in the link below). All samples have been submitted for fire assay with the results pending.  

Namdini Scout Sterilisation Drilling

Scout sterilisation drilling at Namdini North and Namdini South during this quarter comprised of 11 RC drill holes and 3 RC drill holes with diamond tails (see Figure 4 in the link below).

Three lines of shallow inclined reverse circulation drilling werecompleted to the north (two lines) and south (one line) of the Namdini deposit in order to initiate assessment of suitable locations for the positioning of infrastructure required for any future open pit mining located on the Namdini deposit. A total of 15 holes were drilled for 2,027 metres of RC drilling and 88.85 metres of diamond drill 'tails' for a total of 2,115.85m.  

Drill hole NMDD381-737 intersected the same mineralised lithologies asfound in all previous Namdini drill holes and also confirmed the lower metasedimentary contact.

Diamond Drilling

The drill rigs were aligned at -65deg dip drilling east which allows for the shallowing of the drill holes with depth. The azimuth was set at 095deg instead of 100deg (normal to the strike of the formations) as the borehole traces usually deviate to the right with depth due to the clockwise rotation of the drill rods.

The drill holes were surveyed near the top of each drill hole, then every 30m down the hole to determine the dip and azimuth of the drill holes with depth.  

The core was orientated at each drill run using a digital instrument. The core was marked showing the base of the drill hole, then the core from each drill run was laid in a length of angle iron to fit the core together so that the orientation line could be drawn along the length of the core at the drill site.  Geotechnical parameters were measured using this orientation line as the datum line.

Logging and Sampling  

The core was photographed both dry and wet, then logged lithologically. Weathering, mineralisation and alteration were all captured on a digital tablet for entry into the Cardinal database. A hand held kenometer device was used to measure the geotechnical parameters using the orientation line as a reference.

The core was then cut in half and then quartered. One quarter of the core was consistently sampled at 1 metre intervals, with the remaining three quarters core stored in metal core trays and placed on metal racks under cover in the core shed at Bolgatanga.  

The quarter core samples were bagged, weighed, labelled and inserted into polyweave bags for despatch to the laboratory for sample preparation, bulk density determinations on selected samples from each lithological unit and fire assay. QAQC protocols were observed by inserting in-house blanks and commercial certified reference material (CRM) as standards at every 22nd sample.

RC samples were collected through a cyclone, then weighed and split on site using a 3-tier splitter. The splitter generates two samples (1 laboratory and 1 reference sample, which is stored at Bolgatanga). Duplicate samples were taken every 22 samples and included with the samples for assaying. In-house blanks and commercial certified reference material (CRM) as standards were inserted at every 10th sample after the duplicates.

Washed RC chips from each 1 m sample bag were logged, then stored in chip trays. Each chip tray contains 10 compartments into which are placed the washed chips for future reference if required.

The Company has redirected its sample submissions from SGS Laboratory in Burkina Faso to the SGS Laboratory Ghana which will assist in the acceleration of assay results.  

Namdini Ground Geophysics
During the previous quarter Gradient Array Induced Polarisation and Ground Magmetic surveys were completed over a 24 sq km area around Namdini (see Figure 5 in the link below).

Soil auger drilling has been planned during this quarter to utilise the same grid lines for shallow soil sampling over the accessible areas within this 24 sq km area. Weather permitting, these surveys will start during October 2016.

Geochemical results will be combined with the ground geophysical interpretations to delineate drill targets to extend and further enhance the gold potential of the Namdini area.

BOLGATANGA PROJECT  

NDONGO PROSPECT

Ndongo Far East Prospect

The airborne geophysical survey over the Ndongo Tenement identified a magnetic body intruded into the low pressure dilation zone around the southern and SE margins of the Pelungu Granite (see Figure 6 in the link below).  

Previous geochemical sampling in this area delineated anomalous gold-in-soil values around the margins of this magnetic intrusive, which constitutes a target area for more exploration.  

During the previous quarter Gradient Array Induced Polarisation (GAIP) and Ground Magnetic (GMAG) ground geophysical surveys were completed over 4 sq km of this target area which should indicate whether any gold- bearing sulphides are developed around the margins of this magnetic intrusive (see Figure 7 in the link below).

A soil auger survey was planned during this quarter to utilize the same geophysical grid to further delineate anomalous areas. This survey is planned to commence during the following quarter, weather permitting.

KUNGONGO PROSPECT  

The airborne geophysicalsurvey over the Kungongo Prospect delineated two interpreted target areas containing possible mineralised structures (see Figure 8 in the link below).  

Target A occurs over a ~6 km long portion of the SW extension of the regional Bole-Bolgatanga Fault (Shear) Zone which extends over northern Ghana. Target B occurs over a ~7 km long area underlain by Birimian greenstones and granitoids.

During the previous quarter (Q2 2016) Gradient Array Induced Polarisation (GAIP) and Ground Magnetic (GMAG) ground geophysical surveys were completed over a 14 sq km area of Target A to delineate possible drilling targets along the shear zone (see Figure 8 in the link below).  

A shallow auger geochemical programme was planned during this quarter utilizing the same GAIP survey grid of 200m line spacings across the entire ~6 km strike length of this shear zone. A total of 36 lines have been cleared across strike for the auger programme to begin during the next quarter (see Figure 9 in the link below).

The geochemical results will be combined with the ground geophysical results to better define drill targets during the next quarter.

BONGO PROSPECT  

The airborne geophysical survey over the Bongo Prospect delineated six interpreted target areas containing possible mineralised structures (see Figure 10 in the link below).

During this quarter planning was done for possible soil auger programmes over Targets A, C and D. Thereafter Gradient Array Induced Polarisation (GAIP) and Ground Magnetic (GMAG) ground geophysical surveys will be considered, depending on the geochemical results.

SUBRANUM PROJECT  

Previous exploration at Subranum has established that the NE extension to the regional Bibiani Shear Zone is developed for approximately 9 km trending SW-NE across the Subranum tenement (see Figure 11 in the link below).

This previous exploration has established a significant anomalous zone of ~5 km to the NE from the SW boundary. Previous shallow drilling, however, had been on 11 fences of varying distances between 200m to >500m apart (see Figure 11 in the link below).  

To properly evaluate the gold mineralisation contained within this anomalous zone, Cardinal is planning a focused systematic exploration  programme to cover this ~5 km anomalous strike length.  

Clearing of the historical drill access tracks was started in this quarter with  planned exploration to start during the next quarter.

To view the full report, please visit:
http://abnnewswire.net/lnk/Z2299321

About Cardinal Resources Ltd:

Cardinal Resources Ltd. (ASX:CDV) is a focused gold exploration and development company with its key assets located in the mineral-rich country of Ghana, West Africa. Cardinal owns and operates 2 drill rigs and has in country infrastructure which allows it to be a low cost exploration and development company.



Contact:

Ghana: Archie Koimtsidis Managing Director
Cardinal Resources Ltd.
P: +233-26-190-5220
Skype: cardinal.archie
Australia: P: +61-8-9322-6600 F: +61-8-9322-6610