dalradian corporate presentation dec 2013 final
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Patrick F. N. Anderson Chief Executive Officer
Sample from the T17 vein 188 g/t of gold
103 g/t of silver 5.07% of copper
High-Grade Gold │ Low-Cost │ Low-Risk │ Development │ Europe │ December 2013
Forward-Looking Information and Qualified Person
This presentation contains “forward-looking information” which may include, but is not limited to, statements with respect to the completion of the acquisition (the “Acquisition”) by the Company from a group of private vendors of approximately 1.3 million hectares of mineral rights over four greenstone belts and a historic silver mining camp in Norway, future financial or operating performance of the Company and its mineral projects, the future price of metals, the estimation of mineral resources, the realization of mineral resource estimates, the timing and amount of estimated future production, costs of production, capital, operating and exploration expenditures, costs and timing of the development of new deposits, costs and timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims and limitations of insurance coverage. 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 exploration and development 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 projects 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 and future exploration activities; actual results of reclamation activities; conclusions of economic evaluations; changes in project parameters and/or economic assessments as plans continue to be refined; future prices of metals; possible variations of mineral grade or recovery rates; the risk that actual costs may exceed estimated costs; 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 presentation 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.
Some technical data in this presentation was taken from the technical report entitled “A Preliminary Economic Assessment of the Curraghinalt Gold Deposit, Tyrone Project, Northern Ireland” dated September 6, 2012, prepared by 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 (the “PEA”).
Michele L. Cote, MSc., P. Geo., VP Exploration, Dalradian Resources Inc., is the Qualified Person who supervised the preparation of the exploration technical data in this presentation.
2
DNA Snapshot
High grade gold deposit with growth potential
Positive PEA shows a high margin and low capex producer
Strong local and national support for Curraghinalt project in Northern Ireland
Green light to proceed with underground development and bulk sampling, pending terms and conditions
Looking forward to an eventful 2014
4
Listing and Coverage
TSX: DNA STOCK PRICE
All dollars quoted in $ CAD 5
$0.00
$0.25
$0.50
$0.75
$1.00
$1.25
$1.50
$1.75
$2.00
Feb2012
Apr2012
Jun2012
Aug2012
Oct2012
Dec2012
Feb2013
Apr2013
Jun2013
Aug2013
Oct2013
$0.56 November 28, 2013
ANALYST COVERAGE: (targets range from $1.90-$0.80)
Bart Jaworski
Michael Curran
Mike Kozak
Jamie Spratt
Steve Parsons
Laurie Curtis, Vanessa Gravina
Joe Mazumdar
John Hayes
Analyst
Targets
$0.80
$1.50
$1.60
$1.00
$1.10
$1.90
$1.75
2009
• Project Acquisition - December
• 600 k ounce gold resource1
2010
• Increased to 1.5 M ounce gold resource1
• IPO - August
2011
• 7 rigs onsite
• Increased to 2.7 M ounce gold resource1
2012
• Robust PEA announced
• New discovery - Alwories
2013
• UG planning permission
• VP Project Development hired
• Extensive drilling and re-sampling completed
In Three Years We Have:
1 Refer to appendix or press release dated Nov. 30, 2011 entitled “Dalradian Announces Resource Increase at Curraghinalt” at www.dalradian.com 6
The Board: A Track Record of Discovery, Development & Production
7
PATRICK F. N. ANDERSON CHIEF EXECUTIVE OFFICER
Founder & Former CEO of Aurelian Resources
‘08 – PDAC International Mineral Discovery
‘08 – Northern Miner Man of the Year
JONATHAN A. RUBENSTEIN Director of Eldorado Gold Corporation
Director of Detour Gold
Chairman & Director of MAG Silver Corp.
Former Director of Aurelian Resources, Sutton Resources, Canico Resource Corp & Cumberland Resources
RONALD P. GAGEL Former SVP and CFO of FNX Mining
THOMAS J. OBRADOVICH CHAIRMAN
Founder & Former CEO of Young-Davidson Mines
Former Director of Aurelian Resources
SEAN E. O. ROOSEN Founder & CEO OF Osisko Mining Corporation
Also Director of Astur Gold
‘06 – Prospector of the Year - Quebec
‘08 – Prospector of the Year - Canada
‘09 – Northern Miner Man of the Year
Founder & CEO OF CONTINENTAL GOLD LIMITED
ARI B. SUSSMAN
GRENVILLE THOMAS Founder & Chairman of Strongbow Exploration Inc.
Founder & Former Chairman, President & Director of Aber Resources (Harry Winston Diamond Corp.) now Dominion Diamond
‘99 – PDAC Prospector of the Year
‘01 – Northern Miner Man of the Year
‘09 – Canadian Mining Hall of Fame
Metal Production in Ireland & the UK
Our flagship asset: Curraghinalt high-grade lode gold deposit
Excellent regional infrastructure
Over 84,000 hectares under license
9
Gortin
Omagh
Curraghinalt
BELFAST
N O R T H E R N I R E L A N D
Galantas Gold
Conroy Diamonds & Gold
Lonmin
Irish Salt Mining
Underground Salt Mine
Clontibret
Croagh Patrick Parys Mountain
Gwynfynydd
Galmoy Avoca
Pallas Green Silvermines
South Crofty
Curraghinalt Gold Deposit
Gold Base Metals Salt Mine
Allihies Copper Mines
Galantas Gold In production
Scotgold Permitted
Vedanta Resources In production
Boliden In production
IMC Exploration 354 g/t gold over 1.5m
Lundin In production
Conroy +1M ounce resource
Lisheen
Cononish
Tara
Cavanacaw
Xstrata Feasibility
Gold Mines of Wales U/G grab sample - 263 g/t gold
Clogau
DG3
Gortin
County Tyrone is Resource Friendly
10
Curraghinalt
Alwories Quarry
kilometres
0 1 2
Curraghinalt
Clear Cut Logging at Gortin Glen Forest Park
125 Metres
Greencastle Quarry
Cavanacaw Open Pit Approx 30 km SW
Social License
11 Dalradian supports the local MS Society
Awarded Top 30 Irish-North American Companies for 2012 & 2013
“Dalradian makes every effort to maintain good community relations, protect the environment and work with all local people providing employment and training.”
“The employment produced from this venture is critical to local work forces at this time. I urge you to grant approval.”
“It makes economic sense to allow DGL to determine whether a future mining project is viable. Not giving planning permission would be to send out a clear signal that Northern Ireland is not open for investment from outside companies.”
“It is incomprehensible that our local youth are having to travel 12,000 miles to work in exploration and extraction of mineral resources when we have potential similar opportunities a mile away. Every effort should be made to expedite this project safely and effectively.”
Epicdocs.planningni.gov.uk. 2011. Public Access. Available at: http://epicdocs.planningni.gov.uk/ShowCaseFile.aspx?appNumber=K/2013/0072/F Accessed: 19 Aug 2013.
To date, the Dept. of Environment has received a total of 262 letters and petitions in favour of the Curraghinalt Underground Program, with only 41 objecting letters
Development of a High-Grade Deposit
13
Gold resource covers a fraction of known mineralization
High-grade 2.7M ounce gold resource (all categories)1
− Measured: 0.02 MT grading 21.51 g/t Au for 10,000 contained ounces
− Indicated: 1.11 MT grading 12.84 g/t Au for 460,000 contained ounces
− Inferred: 5.45 MT grading 12.74 g/t Au for 2.23 million contained ounces
Positive PEA shows a high margin and low capex producer
1 Refer to press release dated Nov. 30, 2011 entitled “Dalradian Announces Resource Increase at Curraghinalt” at www.dalradian.com
Intercept in hole 11-CT-99 projected up dip to 170m mSL
A 12km Gold Trend
GLACIATED TERRAIN WITH MINIMAL OUTCROP
Curraghinalt
Deposit
Curraghinalt
Trend
14
Curraghinalt Trend
Veins in Current Resource
Intersected Veins
Historical Findings
Geochem Anomaly
Curraghinalt Deposit Resource as at Nov 2011 –
Measured: 0.01 Moz Au (0.02MT @ 21.51 g/t)
Indicated: 0.46 Moz Au (1.11MT @ 12.84 g/t)
Inferred: 2.23 Moz Au (5.45 MT @ 12.74 g/t)
Golan Burn
Outcropping veins including
60cm @ 61.43 g/t Au
Alwories Discovery Holes
4.72m @ 14.82 g/t Au
2.22m @ 14.10 g/t Au
1.47m @ 23.6 2g/t Au
400 m Step-out
3.2m @ 5.34 g/t Au
Attagh Burn
2.47m @ 18.99 g/t Au
Curraghinalt: A Growing Resource
16
2.22 m @ 14.1 g/t Au
1.47 m @ 23.6 g/t Au
Alwories
3.6 km
Curraghinalt
2007 Resource
2010 Resource
2011 Resource
2012 Interpreted vein extents
Drilling post 2011 Resource
4.72 m @ 14.82 g/t Au
0m asl
-500m asl
-1000m asl
25
75
00E
25
80
00E
25
85
00E
25
90
00E
25
95
00E
A A’
3.20 m @ 5.34 g/t Au
2.47 m @ 5.19 g/t Au
8.34 m @ 5.84 g/t Au
Preliminary Economic Assessment
18 18
KEY PEA DATA* 3 YEAR TRAILING
AVERAGE GOLD PRICE: $1378/ounce
5 YEAR TRAILING AVERAGE GOLD PRICE:
$1,166/ounce
NPV with 8% discount rate (After-tax) $467 million $331 million
IRR (After-tax) 41.9% 33.4%
Average Annual Production 145,000 ounces/year
Processing Rate 1,700 tonnes/day
Life of Mine 15 years
Initial Capex ($38M contingency) $192 million
Cash Costs $532/ounce or $125/tonne
Diluted Grade 8.1 g/t Au
Gold Recovery 92%
Payback 2 years
* Prepared by Micon International Limited. PEA results released on July 25, 2012. The PEA is preliminary in nature. It includes inferred mineral resources that are considered too speculative geologically to have the
economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the results of the PEA will be realized. All dollars quoted in $ USD unless stated otherwise
At $814 gold price (10-year trailing average), after-tax IRR of 20.2%
Underground Exploration Development
Proposed Access Ramp to Sub-Level
Proposed Tunnel Extensions at Sub-Level
Proposed Tunnel Extensions at 170 M
Level
Existing Exploration
Tunnel
Dalradian has received planning permission to complete approximately 2,000 m of underground exploration development
Extend the existing adit by approximately 45 m to intersect the 106-16 Vein
Drift along several of the known veins & demonstrate vein continuity;
Install a ramp to access 150 m level, approximately 20 m below existing workings;
Removal of large bulk sample for metallurgical test work.
Proposed Crusher Ramp
Proposed Stopes
T17 Vein
No. 1 Vein
106-16 Vein
22
Conceptual Sublevel Development
2,000 m Planned with the Goal to:
• Demonstrate continuity of thickness and grade of mineralized veins.
• Convert additional resources to Measured and Indicated.
• Test mining and backfill methods.
• Investigate geotechnical and hydrogeological conditions.
• Produce a bulk sample for metallurgical test work.
• Test the permitting process.
RO
AD
SHEE
PD
IP
MU
LLA
N
T17
No
. 1
10
6_1
6
BEN
D
CR
OW
EXISTING DEVELOPMENT
PLANNED DEVELOPMENT
PLANNED DEVELOPMENT
PLANNED STOPING
22
Underground Project Timeline
23
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Months
Surface Work
Exploration Tunneling
Test Stoping
Hydrogeology & Geotechnical Studies
Backfill testing
Metallurgical Testing
Receipt of planning permission with final terms and conditions
Upcoming milestones
24
Issuance by the Strategic Planning Division of final planning permission, including terms and conditions, expected shortly
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 in Q4 2014
Now that we have a positive planning recommendation by SPD
Patrick F. N. Anderson
Chief Executive Officer
info@dalradian.com
416.583.5622
Trading Symbol:
DNA on TSX
Corporate Office:
Dalradian Resources Inc.
155 Wellington Street West
Suite 2920
Toronto, Ontario
Canada M5V 3H1
www.dalradian.com
Oslo
Kongsberg
SOUTHERN NORWAY
NORWAY
FINLAND SWEDEN
RUSSIA
Land Position
Northern Norway
Four concessions over three greenstone belts and a basement window
10 gold-in-till anomalies identified
Southern Norway
Kongsberg concession hosting an historic silver mining district
Five silver targets identified
Rombak
NORTHERN NORWAY
Greenstone Belts
Volcanic Belts & Metasediments
Kautokeino
Kittilä Sakattilampi
Bidjovagge
Pasvik
Karasjok
Pechenga NORWAY
FINLAND
SWEDEN
RUSSIA
26
43-101 Resource
27
High-grade 1.5M ounce gold resource (all categories)1
− Indicated: 0.95 MT grading 13.24 g/t Au for 400,000 contained ounces
− Inferred: 2.46 MT grading 14.64 g/t Au for 1.16 million contained ounces
2010 RESOURCE
Northern Ireland
Norway
1 Refer to press release dated Nov. 30, 2011 entitled “Dalradian Announces Resource Increase at Curraghinalt” at www.dalradian.com
2011 RESOURCE
High-grade 2.7M ounce gold resource (all categories)1
− Measured: 0.02 MT grading 21.51 g/t Au for 10,000 contained ounces
− Indicated: 1.11 MT grading 12.84 g/t Au for 460,000 contained ounces
− Inferred: 5.45 MT grading 12.74 g/t Au for 2.23 million contained ounces
2007 RESOURCE
High-grade 600 k ounce gold resource (all categories)1
− Indicated: 0.57 MT grading 13.95 g/t Au for 250,000 contained ounces
− Inferred: 0.64 MT grading 17.15 g/t Au for 350,000 contained ounces
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