Cardinal Resources Ltd.: First Pass Regional Exploration Drilling Underway

Perth - Cardinal Resources Ltd. (ASX:CDV) (TSE:CDV) (OTCMKTS:CRDNF) ("Cardinal" or "the Company") is pleased to provide an update in relation to the Stage 1 appraisal programmes over three Exploration Licenses ("Bongo"), ("Kungongo"), ("Ndongo") all within the Company's Bolgatanga Project located within close proximity to the Company's Namdini Gold Project, in the Upper East Region of Ghana, as well as the Subranum Project ("Subranum") located in Southwest Ghana (see Figures 1 and 3 in link below).

Highlights

- Cardinal's commitment to regional exploration in Ghana has been stepped up on the strength of early results, with drill rigs testing a range of targets across the extensive tenement package

- Reconnaissance exploration including airborne magnetics, ground geophysics and auger drilling is considered highly encouraging and defined several coincident structural, geophysical and geochemical corridors for follow up drilling

- Cardinal now has six drill rigs active across the exploration portfolio

Bongo License Area

o The Bongo area is considered to be related to the northeast trending regional gold rich Markoye Fault Corridor which hosts several major gold deposits in Burkina Faso including B2Gold's 5.8Moz Kiaka Gold Mine, West Africa Resources' 1.1Moz Tanlouka Gold Project, Orezone Resources' 5.7Moz Bombore Gold Mine and IAMGOLD's 6.6Moz Essakane Gold Mine

o Three drill-ready target areas have been generated from auger gold-in-soil anomalies, previous air magnetic interpretation, mapping and ground truthing over the prospect

o Cardinal expects to commence drilling these targets Q2 2018

Kungongo License Area

o Positive assay results returned from first pass widely-spaced drilling at the Kungongo License area indicate shallow mineralisation exists beneath anomalous auger drilling. Best results included 1m at 6.7g/t from 37m, 2m at 6.5g/t from 7m and 5m at 2.8g/t Au from 60m

o 5,000m of RC and Diamond drilling is set to commence Q3 2018 to follow up the widely-spaced first pass results

Ndongo License Area

o Previous RC drilling completed by Africwest Gold in 1997 around the historic Nangodi Gold Mine returned gold grades including 41m at 5.2g/t, 32m at 3.1g/t, 26m at 2.8g/t, 21m at 3.8g/t, 15m at 4.6g/t and 13m at 2.5g/t

o Six large-scale targets have been identified in the Ndongo License Area, with an initial focus on targets close to the historic Nangodi Gold Mine. Drilling of three of these target areas is underway with the remainder set to commence during Q2 2018

Subranum License Area

o Scout drilling has commenced to test an anomalous five-kilometre strike length along the Bibiani shear zone

- Regular drill and exploration news flow is anticipated throughout 2018 stemming from the large programme underway

Cardinal's Chief Executive Officer / Managing Director, Archie Koimtsidis stated:

"Cardinal has been working extensively on the development of the Namdini Project through the completion of its Preliminary Economic Analysis ("PEA"), Mineral Resource upgrade and a Pre-Feasibility Study which is currently in progress given the positive outcomes of the PEA.

"In conjunction with the development of Namdini, the Company has been actively engaged in exploration activities on its extensive license holdings.

"First pass shallow RC drilling beneath some of our auger soil anomalous areas within the Kungongo License, has provided us with very encouraging results and technical data which will be used in planning the next phase of drilling over this six-kilometre target (see Figures 7 to 11 in link below). Results included 1m at 6.7g/t from 37m, 2m at 6.5g/t from 7m and 5m at 2.8g/t Au from 60m.

"The recent acquisition of two large-scale licenses from Kinross Gold were merged with our existing Ndongo License which increased our Bolgatanga regional land package to approximately 900 km2 providing a strategic footprint over the greenstone belt which hosts the regional Nangodi Shear Zone. This regional shear hosts the producing Youga Gold Mine and adjacent Ouare Prospect in Burkina Faso, the historic Nangodi Gold Mine and the currently producing Shaanxi Gold Mine and continues into Cardinal's Tier 1 Namdini gold deposit (see Figures 2, 3, and 12 to 14 in link below).

"Exploration over Cardinal's tenements have included close spaced airborne magnetic-radiometric surveys at flight line spacings of 75m to 100m which have improved resolution and increased targeting confidence. Detailed follow up ground geophysics, shallow auger soil sampling, surface mapping and limited shallow scout drilling have helped to further delineate lithological and structural settings. Initial results have been very encouraging, consequently, we have stepped up our commitment to regional exploration with the mobilisation of geological and ground geophysical crews as well as drill rigs to test these targets."

BONGO LICENSE AREA

The Bongo License covers an area of 453 km2 adjacent to the regional Bole-Bolgatanga Shear and is dominated by three major intrusive complexes, predominantly granitoids of intermediate to foliated felsic basin types intercalated with mafic volcanic flows (see Figure 4 in link below).

The Bongo License area is related to the northeast trending regional gold rich Markoye Fault Corridor on which some major gold discoveries in Burkina Faso are located including, B2Gold's 5.8Moz Kiaka Gold Mine, West Africa Resources' 1.1Moz Tanlouka Gold Project, Orezone Resources' 5.7Moz Bombore Gold Mine and IAMGOLD's 6.6Moz Essakane Gold Mine (see Figure 2 in link below). Bongo is approximately 28km northwest of the Company's 7Moz Namdini Gold deposit (see Figure 3 in link below).

No previous exploration had been completed over the Bongo License area prior to an airborne geophysical survey conducted by Cardinal at a flight line spacing of 100m in December 2013. Following the airborne survey, a total of 36,577m of auger drilling was completed from 10,915 holes on a 400m by 50m grid over target areas interpreted from the airborne geophysical survey.

Six target areas were initially identified from the airborne geophysical survey. Three of these target areas (A, B and C) totaling 26km in strike length within the northwestern, northeastern and southeastern parts of the Bongo License were generated from auger soil anomalies, previous air magnetic interpretation, mapping and ground truthing over the license (see Figure 4 in link below).

Target A - Test drilling is planned (see Figures 4 to 6 in link below)

Coincident magnetic and soil anomalies 10km in strike length and located in the southeast area adjacent to the regional Bole-Bolgatanga Shear.

Target B - Test drilling is planned (see Figures 4 to 6 in link below)

Delineated contact zone between ultramafic and granitic lithologies from airborne magnetic interpretation located in the northeast area and comprised of ultramafic rocks with 5km of strike length.

Target C - Test drilling is planned (see Figures 4 to 6 in link below)

Located within the northwest area and comprised of Birimian greenstones within granitic rocks delineating an 11km anomalous zone with coincident gold-in-soil auger geochemistry levels with a peak value of 1,680ppb gold (equivalent to 1.7g/t Au). The southern extension of the Markoye Fault Corridor from Burkina Faso appears to continue into this Target C area (see Figure 2 in link below) which considerably enhances the potential of this target.

Reconnaissance RC drilling is expected to commence Q2 - 2018 across all three anomalous targets.

KUNGONGO LICENSE AREA

The Kungongo License is located in northeast Ghana some 45km west of the Company's Namdini Gold Project. The license covers an area of 122 km2 and is a renewable Exploration License (see Figure 3 in link below).

Kungongo is located over the regional Bole-Bolgatanga Shear that can be traced for a length of 6km within the northwest corner of the license. The Shear extends northeast through Burkina Faso and into Niger as well as to the southwest to the Ghana-Cote d'Ivoire border beyond which it is difficult to trace. This shear zone is considered to be highly prospective as it hosts major gold discoveries including the 2.1Moz Youga Gold Mine and Ouare Project in Burkina Faso (both owned by Avesoro Resources) and the 2.5Moz Samira Hill Gold Mine (owned by SOPAMIN) in Niger (see Figures 2 and 3 in link below).

The prospective area within the Kungongo License is dominated by a series of metamorphosed granitoids in contact with tightly folded Birimian metasediments, metavolcanics, volcaniclastics and mafic volcanic flows that are sheared along the Bole-Bolgatanga Shear Zone (see Figure 7 in link below).

Auger drilling on the Kungongo license commenced in 2016 as follow up work to the ground geophysics targets. The auger drilling was completed on a 400m by 50m grid spacing. Follow up infill sampling was later carried out on a 200m by 50m spacing which returned several anomalies with a peak value of 4,115ppb gold (equivalent to 4.1g/t Au). Geochemical background values from statistical analysis were established at less than 12ppb gold, with all values greater than 24ppb considered as gold-in-soil anomalies. Overall, a total of 17,662m were drilled from 4,043 auger soil sample locations (see Figure 8 in link below).

Aerial magnetics delineated a broad shear zone in the northwest corner of this prospect (see Target A, Figure 9 in link below). Ground Gradient Array Induced Polarization ("GAIP"), ground magnetics and ground gravity surveys all delineated east-northeast to west-southwest-striking alternating metavolcanic and metasedimentary horizons. The gold-insoil anomalous areas cover a resistive and non-chargeable zone with a complex magnetic character.

Mapping and ground truthing have identified artisanal workings along the main shear zone, which target stockwork quartz vein mineralisation. Mapping further northeast along the Bole-Bolgatanga Fault revealed more artisanal workings about 15km along strike from the license area.

Recent RC drilling has focused primarily on shallow auger soil gold anomalies and ground magnetics. Drilling has confirmed a sequence of mixed sediments and mafic volcanics. The initial RC drilling was completed on a series of fences between 400m and 1,600m apart. Hole spacing on lines was at 50m to 100m centres, with the drilling covering approximately 3.6km of strike length along the target (see Figure 10 in link below). Gold intersections returned were encouraging with some significant grades and multiple zones encountered (see Figure 11 in link below). Of note, drilling was shallow and demonstrated extensive shearing.

5,000m of RC and diamond drilling is set to commence by the end of second quarter of 2018 and is designed to follow up the widely-spaced anomalous first pass results.

Assay results from the first pass drilling programme included: 

- 1m at 6.7g/t Au from 37m      - 5m at 2.0 g/t Au from 47m 

- 2m at 6.5g/t Au from 7m       - 6m at 1.8 g/t Au from 125m 

- 2m at 4.3g/t Au from 1m       - 3m at 1.6 g/t Au from 45m 

- 1m at 4.3 g/t Au from 4m      - 7m at 1.3g/t Au from 123m 

- 5m at 2.8 g/t Au from 60m     - 5m at 1.3g/t Au from 53m  

- 2m at 2.8 g/t Au from 9m      - 4m at 1.2 g/t Au from 63m  

NDONGO LICENSE AREA

The Ndongo License covers an area of 295km2, having been recently expanded by the purchase of two exploration licence areas from Kinross Gold in August 2017 (see Figure 3 in link below). Exploration has defined six prospects totalling 70km in strike length only 15km north of the Namdini Gold Project.

The Company considers the license area to be 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 major gold discoveries, including the Company's 7Moz Namdini Gold Project, the Shaanxi Mine, the historic Nangodi Gold Mine and the 2.1Moz Youga Gold Mine in Burkina Faso, adjacent to the Ghana border (see Figures 2 and 3 in link below). In addition, there are numerous historic shallow artisanal workings along many parts of this shear zone.

The discovery of the Namdini Gold deposit has provided useful information and insight for Cardinal's geological team and a focal point for exploration activities along the Nangodi Shear Zone. Together with the extensive data gathered to date, this will help to continue to refine and target ongoing exploration programmes to unlock the broader potential for additional gold mineralisation types similar to Namdini, or other styles of gold occurrences.

Below are some highlights of exploration activities that have been completed to date over the license:

- A total of 21,062m of soil sampling were completed on a 100m by 50m to 200m by 50m grid spacing to delineate a number of gold-in-soil anomalies with a peak value of 3,232ppb gold (equivalent to 3.2 g/t Au). Gold values greater than 24ppb are considered as anomalous in delineating targets.

- The Company has undertaken an Airborne Magnetic-Radiometric survey over the entire Ndongo license at a flight line spacing of 100m which has improved resolution.

- A total of 86 line kilometres of GAIP was completed covering some 70% of the license with lines spaced at 100m.

- Ground Magnetic surveys have been completed within the area covered by the GAIP survey.

More than 120 diamond and RC historic drill holes and geophysical data within the Kinross land package have provided Cardinal with an extensive database which is currently being processed by Southern Geoscience Consultants (SGC Perth) to aid in the identification of additional drill targets.

Six large scale targets (A to F) which are considered highly prospective for gold mineralisation have been defined from coincident historical drill data, auger soil anomalies and geophysical surveys (see Figures 6 to 8 in link below).

Target A - Further drilling is planned (see Figures 12 to 14 in link below)

Historic shallow artisanal shafts are located in areas with coincident anomalous soil results. A GAIP survey over this prospect has identified a well-defined contact zone between conductive and resistive rock units trending northeast-southwest.

Historical shallow reconnaissance RC drilling intersected gold mineralisation within this contact zone with results including 4m at 3.2 g/t Au at a vertical depth of 25m (see Target A, Figure 6 in link below). Further drilling of this target is planned.

Target B- RC drill testing currently underway (see Figures 12 to 14 in link below)

Aerial surveys, geological and soil geochemistry data indicate that multiple north to north-northeast mineralised structures were developed over almost a 4km strike length and 1.5km width within the Central Zone area.

Dipole-dipole IP ("DDIP") and ground magnetic surveys were conducted to further define these mineralised structures. DDIP delineated extensive conductive areas which were drill tested. Scout drilling revealed the conductive areas as mainly unmineralised metasediments, however, between the two conductive units, a silicified zone was identified, which contained anomalous gold-in-soil results. RC drilling is currently in progress to test this contact silicified zone.

Target C - RC drill testing currently underway (see Figures 12 to 14 in link below)

A regional north-south ~30km shear containing the historic Nangodi Gold Mine and the producing Shaanxi Gold Mine has been mapped over a strike length of ~9km within the license (Figure 3 and Target C within Figures 12 to 14) (see link below). Geochemical and rock chip sampling across the silicified, manganese-rich, shear zone delineated anomalous gold values averaging 128ppb Au along a ~1.3km strike length.

RC drilling has commenced on the anomalous zones along Target C where intense folding was observed in the outcropping metasediments within this shear zone.

Target D - Test drilling is planned (see Figures 12 to 14 in link below)

Geochemical sampling has identified highly anomalous gold-in-soil values around the southern margins of the intrusive Pelungu Granite.

Subsequent airborne geophysical surveys over Ndongo identified a large magnetic anomaly around the southern margin of this granite. Anomalous soil values up to 2,498ppb gold (equivalent to 2.5g/t Au) coincide with this magnetic anomaly and present a favourable exploration target (see Target D, Figure 14 in link below). Plans are underway to test this target.

Target E - Drill testing currently underway (see Figures 12 to 14 in link below)

Previous exploration by Africwest around the historic Nangodi Gold Mine identified stockwork quartz veins with disseminated sulphide mineralisation associated with a felsic porphyry. RC drilling completed by Africwest in 1997 returned gold grades including 41m at 5.2g/t, 32m at 3.1g/t, 26m at 2.8g/t, 21m at 3.8g/t, 15m at 4.6g/t and 13m at 2.5g/t.

Previous RC drilling by Abzu Gold in 2011 across the Nangodi Shear Zone at the historic Nangodi Gold Mine designed to twin, duplicate and infill the previous drilling by Africwest reported gold intersections including 24m at 2.3g/t, 66m at 1.5g/t, 44m at 1.9g/t and 73m at 1.2g/t. Mineralisation appears to be adjacent to the contact between mafic volcanics and felsic porphyry.

Drilling is currently underway around Target E close to the historic Nangodi Gold Mine to test mineralisation to the south of the Mine (see Figure 12 in link below).

Target F - Test drilling is planned (see Figures 12 to 14 in link below)

Anomalous gold-in-soils and ground magnetics have delineated a prospective area at Target F (see Figure 13 in link below). Numerous soil samples grading between 50 to >100ppb Au and magnetics has delineated a shear zone; both of which require further testing.

SUBRANUM PROJECT

The Subranum Project covers an area of 69km2 located in southwest Ghana. The license straddles the eastern margin of the Sefwi Gold Belt. There is 9km of prospective sheared contact between Birimian phyllites and greywackes to the east and mafic to intermediate volcanics and volcaniclastics to the west. Granitoid stocks of the Dixcove suite intrude this shear zone. The Sefwi Belt is highly prospective and is spatially related to major discoveries including the 7Moz Bibiani Gold Mine (approximately 70km southwest), Newmont's Ahafo 23Moz Gold Mine (approximately 53km west), Kinross' Chirano 5Moz Gold Mine (approximately 110km southwest) (see Figure 3 in link below).

Previous exploration by Newmont (soil sampling, trenching and drilling) discovered a gold mineralised zone over 5 km containing an estimated 100,000 oz of gold to a depth of only 50m. As the drilling was on irregular, widely spaced drill fences, Cardinal plans to systematically drill this initial target area to better define and extend gold mineralisation along strike and at depth (see Figures 15 to 17 in link below).

To view figures, please visit:
http://abnnewswire.net/lnk/BDV2W0V2

About Cardinal Resources Ltd:

Cardinal Resources Ltd. (ASX:CDV) (TSE:CDV) (OTCMKTS:CRDNF) is a gold-focused exploration and development Company which holds interests in tenements within Ghana, West Africa.

The Company's Namdini Project has an Indicated Mineral Resource of 6.5Moz of gold contained in 180Mt at 1.1 g/t Au at a cut-off of 0.5g/t Au and an Inferred Mineral Resource of 0.5Moz of gold contained in 13Mt @ 1.2 g/t Au at a cut off of 0.5 g/t Au.

The Company is focused on the development of the Namdini Project through advancing the Pre-Feasiblity study, supported by additional multi-disciplinary engineering activities.

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



Contact:

Archie Koimtsidis CEO / MD
Cardinal Resources Ltd.
P: +61-8-6558-0573

Alec Rowlands IR / Corp Dev
Cardinal Resources Ltd.
P: +1-647-256-1922