TORONTO, ONTARIO--(Marketwired - Nov. 28, 2013) - Dalradian Resources Inc. ("Dalradian" or the "Company") (DNA.TO) announces development and exploration milestones for the remainder of 2013 and 2014 on its Curraghinalt Gold Project in Northern Ireland, as well as an update on the permitting process for the upcoming underground exploration development program.
Dalradian's Preliminary Economic Assessment (PEA), dated July 25, 2012, reported positive results for a proposed underground mine at Curraghinalt including:
- Production of an average of 145,000 ounces of gold per year
- 15-year mine life
- After-tax IRR of 41.9% using a 3 year trailing average gold price of $1378 per ounce
- After-tax IRR of 33.4% using a 5 year trailing average gold price of $1166 per ounce
- After-tax IRR of 20.2% using a 10 year trailing average gold price of $814 per ounce
- Initial capex of $192 million which includes $38 million in contingency
- Cash costs of $532 per ounce
The application for the next phase of underground development and bulk sampling has been progressing through the Department of Environment's (DOE) planning approval process, with the Strategic Planning Division of the DOE recently recommending approval of the project. The remaining steps in the approval process and key milestones that will follow on approval include:
- Omagh District Council (final stakeholder) vote on December 2 to ratify the positive recommendation from the Strategic Planning Division for the underground exploration program;
- Issuance by the Strategic Planning Division of final planning permission, including terms and conditions, shortly thereafter;
- Compliance by Dalradian with planning pre-conditions, including approval of various environmental management plans, by end of January 2014;
- Awarding of surface and underground contracts by Dalradian in early Q1 2014;
- Commencement of earthworks in Q1 2014;
- Mineral Resource update in Q1 2014;
- Preliminary Economic Assessment update in Q2 2014;
- Commencement of underground blasting in Q2 2014;
- Stoping begins in Q3 2014;
- Metallurgical testing commencing in Q4 2014;
About Dalradian Resources Inc.:
Dalradian Resources Inc. is a TSX-listed, Canadian based gold development and exploration company. Our most advanced property is in Northern Ireland around the high-grade lode gold deposit, Curraghinalt.
Dalradian's flagship deposit, Curraghinalt hosts an NI 43-101 compliant measured mineral resource of 0.02 MT grading 21.51 g/t gold for 10,000 contained ounces, indicated mineral resource of 1.11 MT grading 12.84 g/t gold for 460,000 contained ounces and inferred mineral resource of 5.45 MT grading 12.74 g/t for 2,230,000 contained ounces. Mineral resources which are not mineral reserves do not have demonstrated economic viability. Dalradian's Preliminary Economic Assessment reported positive results for a proposed underground mine at Curraghinalt including an after-tax IRR of 41.9% and 33.4% and NPV of $467 and $331 million based on an 8% discount rate using a 3 year and 5 year trailing average gold price of $1378 and $1166 per ounce respectively.
Dalradian's NI 43-101 report, "A Preliminary Economic Assessment of the Curraghinalt Gold Deposit, Tyrone Project, Northern Ireland" is dated September 6, 2012, and was prepared by Mr. B. Terrence Hennessey, P.Geo., Mr. Barnard Foo, P.Eng., Mr. Bogdan Damjanovic, P.Eng., Mr. Andre Villeneuve, P.Eng., and Mr. Christopher Jacobs, CEng MIMMM of Micon International Limited, and is available on SEDAR at www.sedar.com.
Dalradian's Common Shares are listed on the Toronto Stock Exchange under the symbol "DNA". For further information, please see www.dalradian.com.
This news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future, including, without limitation, test work and confirming results from work performed to date, estimation of mineral resources and the realization of the expected economics of the Curraghinalt Gold Deposit. Often, but not always, forward-looking statements can be identified by the use of words and phrases such as "plans," "expects," "is expected," "budget," "scheduled," "estimates," "forecasts," "intends," "anticipates," or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may," "could," "would," "might" or "will" be taken, occur or be achieved.
Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and are based on various assumptions, such as the continued political stability in Northern Ireland and Norway, that permits required for the Company's operations will be obtained in a timely basis in order to permit the Company to proceed on schedule with its planned development and exploration programs, that skilled personnel and contractors will be available as the Company's operations continue to grow, that the price of gold will be at levels that render the Company's mineral project economic, that the Company will be able to continue raising the necessary capital to finance its operations and realize on mineral resource estimates, and that the assumptions contained in the PEA are accurate and complete.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; actual results of reclamation activities; conclusions of economic evaluations; meeting various expected cost estimates; changes in project parameters as plans continue to be refined; future prices of metals; possible variations of mineral grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; political instability; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "Risk Factors" in the Company's annual information form.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.