TORONTO, ONTARIO--(Marketwired - Oct 23, 2013) - Dalradian Resources Inc. ("Dalradian" or the "Company") (DNA.TO) is pleased to announce the results of additional metallurgical testing from the Curraghinalt high-grade gold deposit in Northern Ireland. The laboratory testing, using a sequential gravity-flotation circuit, demonstrated overall gold recoveries of 99.4%, with 29.4% of the gold reporting to the gravity circuit, and 70.0% reporting to a bulk rougher concentrate. These results demonstrate a potential alternative processing method, with higher overall recoveries, compared to the whole-ore cyanidation process used as the base-case scenario in the September 2012 Preliminary Economic Assessment (PEA).
Test work was carried out by ALS Metallurgy of Kamloops BC on a representative composite sample approximating, though somewhat higher grade than, the overall life-of-mine gold head grade of 8.1 g/t gold, as defined in the September 2012 PEA.
|Material||Gold Grade (g/t||)||Silver Grade (g/t||)||Mass Pull (%||)||Gold Recovery (%||)|
|Metallurgical Composite Used (12-1A)||12.5||8|
|Compared with PEA Life Of Mine Average Head Grade||8.1||3|
Gold from the gravity concentrate could be processed at site to produce a saleable doré metal bar, while the flotation concentrate could either be cyanide leached at site or sold to a smelter. Analysis of the flotation concentrate suggests a clean, saleable concentrate could be produced, with no significant penalty elements present. Future metallurgical work will focus on refining the gravity and flotation circuits over a wider range of head grades, and on preliminary marketing of the concentrates with several smelters to assess potential economic terms.
In summary, the results of this recent test work compare favourably to the 91% gold recovery obtained through the whole ore leach base case scenario in the PEA. A further benefit of a combined gravity-flotation circuit is that the tailings would have a low sulphide content and would not have been in contact with cyanide at any stage, which is likely to be beneficial in terms of permitting an eventual mine at Curraghinalt.
Material was first ground to 80% passing 191 microns (μm) before being fed to a Knelson concentrator to produce a gravity concentrate. The gravity concentrate was subsequently upgraded by panning, although in a production scenario this upgrading would likely be accomplished by a shaker table. Tails from the gravity circuit were reground to 80% passing 140 μm, before being passed to a bulk sulphide flotation circuit to produce a concentrate grading 82.8 g/t gold and 59 g/t silver.
Dalradian submitted planning permission in February 2013 to carry out approximately 2,000 m of underground exploration development including the collection of an approximately 40,000 tonne bulk sample. This bulk sample is expected to provide ample material for future metallurgical test work.
About Dalradian Resources Inc.:
Dalradian Resources Inc. is a TSX-listed, Canadian based gold and silver development and exploration company. With a European focus, our most advanced property is in Northern Ireland and around the high-grade lode gold deposit, Curraghinalt.
The Company's wholly owned subsidiary, Dalradian Gold Limited, holds a 100% interest, subject to certain royalties, in mineral prospecting licences and mining lease option agreements in counties Tyrone and Londonderry, Northern Ireland. The Department of Enterprise, Trade and Investment ("DETI") and the Crown Estate Commissioners ("CEC") have together granted to Dalradian base and precious metal mineral exploration rights to four contiguous areas collectively known as the Northern Ireland Properties.
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 Damjanović, 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. Mr. Bogdan Damjanović, P.Eng., is the Qualified Person for the new metallurgical work reported in this press release.
In Norway, Dalradian holds mineral rights for approximately 1.3 million hectares over three greenstone belts, as well as an area hosting an historic silver mining district.
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.
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.