Cardinal Resources (Toronto: CDV) (OTC: CRDNF) has properties that are located in Ghana, West Africa, notes Ralph Aldis, resource sector specialist and portfolio manager for U.S. Global Investors.
Their main focus is the Namdini project with a resource of 7 million ounces at 1.1 g/t gold. Being at the development stage, many of these companies like Cardinal are flying below the radar.
Investors are just beginning to think that maybe 2019 will be a good year for the gold market — much like 2016 when the Fed let off the gas pedal a bit at the end of 2015.
Some of the major gold companies are cranking out 3 to 4 million ounces a year, so finding a new 7 million ounce deposit to exploit, which has a market capitalization of about $113 million, is nearly a steal.
With market capitalization of about $16 per ounce in the ground and at 1.1 g/t of gold per ton ($44 of value per ton of rock), that is enough of a spread to cover capital to build out the mine and make a profit.
Newmont Mining (NEM) should be looking at this as a possible acquisition since they already have two mines in Ghana – it wouldn’t be such a stretch. Cardinal Resources has the ounces and land packages that could interest any major gold producer.
