Cardinal Resources (ASX: CDV) - Potential for a Major Gold System

Cardinal Resources (ASX: CDV) is a relatively new gold exploration play in terms of our coverage universe. We have however followed the stock for some time and have met consistently with the company’s African-based Managing Director, Archie Koimtsidis. At this stage the stock is just a pure gold exploration play, but that hasn't affected its share market performance, having risen from a 12-month low of $0.059 during July 2015 to an all-time high of $0.30 during this week's trade. The rationale for the strong interest lies in the wide zones of gold mineralisation that Cardinal has so far identified at its flagship Namdini project in Ghana, situated in a prime gold-producing region. The company advised this week that an ongoing diamond drilling program had identified an extremely wide gold mineralised zone of 310 metres. This is significant for two reasons - firstly, it puts the company on track for delivery of an initial Exploration Target during Q3 2016 - and secondly, it reinforces the potential for a very large gold system at Namdini.