Dalradian Resources Inc. ("Dalradian" or the "Company") 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.