Cardinal Resources : 220m Wide Gold Zone With Infill Drilling at Namdini

Microsoft Word - 2016-05-31 220m Wide Gold Zone With Infill Drilling v6 ASX ANNOUNCEMENT AND MEDIA RELEASE

31 May 2016

220m WIDE GOLD ZONE WITH INFILL DRILLING AT NAMDINI HIGHLIGHTS

• Wide gold mineralised zone of 220m with infill diamond drilling
• Significant gold mineralised intersections within this section include:

o 59m @ 1.42 g/t o 30m @ 1.20 g/t o 15.5m @ 1.70 g/t o 9m @ 3.44 g/t o 4m @ 3.97 g/t

Cardinal Resources Limited (ASX: CDV) ("Cardinal" or "the Company") announces the results of a further two diamond drill holes, NMDD374‐721 and NMDD372‐741, recently completed on the Namdini Project ("Namdini") (Figure 1).

The gold potential of the Namdini Project continues to be confirmed by the intersection of long mineralised zones, including 59m @ 1.42 g/t and 30m @ 1.20 g/t, as well as high grade gold zones of 9m @ 3.44 g/t and 4m @ 3.97 g/t within these two diamond drill holes.

Infill diamond drill holes NMDD374‐721 and NMDD372‐741 have enabled Section D to be compiled with a 220m wide gold mineralised zone (Figure 2). This mineralised section confirms the continuation of wide gold mineralisation both at depth and along strike within the Namdini Project.

The volcaniclastics intersected in both diamond drill holes are mineralised throughout which confirm that gold mineralisation is consistently being intersected along strike and at depth.

Infill diamond drilling is being done at 50m spacings between previous 100m spaced diamond drill sections to confirm and enhance the gold mineralisation previously intersected within the volcaniclastics, granitoids and diorites (Figure 1).

Currently the Cardinal drill rig and two contract drill rigs are on site drilling holes NMDD489‐779, NMDD346‐715 and NMDD346‐733. Assay results are pending from 14 drill holes, which should shortly provide a constant flow of results (Figure 1).

Figure 1: Location of Diamond Drill Holes NMDD374‐721 and NMDD372‐741 Figure 2: Diamond Drill Holes NMDD374‐721 and NMDD372‐741 with mineralised zone of 220m

NMDD374‐721 intersected 208m of gold mineralisation within hydrothermally altered volcaniclastics from 48m to 256m vertical depths with multiple zones of mineralisation down the drill hole, including 4m @ 3.97 g/t, 30m @ 1.20 g/t and 59m @ 1.42 g/t, confirming continuity of mineralisation with depth (Figures 2 and 3).

Figure 3: Hydrothermally mineralised and altered volcaniclastics (NMDD374‐721)

NMDD372‐741 intersected 161m of mineralisation within hydrothermally altered volcaniclastics from 5m to 166m vertical depths, including 15.5m @ 1.70 g/t and 9m @ 3.44 g/t confirming continuity of mineralisation with depth (Figures 2 and 4).

Figure 4: Hydrothermally mineralised and altered volcaniclastics (NMDD372‐741)

Drill holes NMDD374‐721 and NMDD372‐741 were cored from surface. The soft near surface materials were drilled with a Triple Tube core barrel to reduce core losses. Once harder rock was encountered, then HW steel casing was inserted for stability of each hole and HQ size core was drilled to their final depths of 411.90m and 312.30m respectively.

The drill rigs were aligned for both drill holes at ‐65⁰ dip drilling east which allows for the shallowing of the drill holes with depth. The azimuth was set at 095⁰ instead of 100⁰ (normal to the strike of the formations) as the borehole traces usually deflects 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.

The core was photographed then cut in half and then cut in half again. One quarter of the core was consistently sampled, with the remaining three quarters stored in metal core trays and placed on metal racks under cover in the core shed at Bolgatanga. The quarter core samples were sent to the SGS Laboratory in Burkina Faso for sample preparation and fire assay.

Planned Diamond Drilling Program

A further two infill diamond drill holes along Section R at 50m spacing from Section Q will complete the initial 50m spaced infill diamond drilling programme designed to evaluate the NNE trending gold mineralised corridor (marked in black circles on Figure 1). All of the completed infill diamond drill holes were