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Dalradian corporate presentation april 2013


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Dalradian corporate presentation april 2013

  1. 1. Sample  from  the  T17  vein  –  188  g/t  of  gold,  103  g/t  of  silver  and  5.07%  of  copper    High-­‐Grade  │  Low-­‐Risk    │    Explora8on  │  Development  │  Europe    │        April  2013   Patrick  F.  N.  Anderson     Chief  Execu8ve  Officer  
  2. 2. Forward-­‐Looking  Statement  &  Qualified  Persons  This   presenta8on   contains   “forward   looking   informa8on”   which   may   include,   but   is   not   limited   to,   statements   with   respect   to   [future   financial   or   opera8ng   performance   of   the   Company   and   its   mineral  projects,  the  future  price  of  metals,  the  es8ma8on  of  mineral  resources,  the  realiza8on  of  mineral  resource  es8mates,  the  8ming  and  amount  of  es8mated  future  produc8on,  costs  of  produc8on,  capital,  opera8ng  and  explora8on  expenditures,  costs  and  8ming  of  the  development  of  new  deposits,  costs  and  8ming  of  future  explora8on,  requirements  for  addi8onal  capital,  government  regula8on  of  mining  opera8ons,   environmental   risks,   reclama8on   expenses,   8tle   disputes   or   claims   and   limita8ons   of   insurance   coverage].   O_en,   but   not   always,   forward   looking   statements   can   be   iden8fied   by   the   use   of   words  and  phrases  such  as  “plans,”  “expects,”  “is  expected,”  “budget,”  “scheduled,”  “es8mates,”  “forecasts,”  “intends,”  “an8cipates,”  or  “believes”  or  varia8ons  (including  nega8ve  varia8ons)  of  such  words  and  phrases,  or  state  that  certain  ac8ons,  events  or  results  “may,”  “could,”  “would,”  “might”  or  “will”  be  taken,  occur  or  be  achieved.  Forward-­‐looking  statements  are  based  on  the  opinions  and  es8mates  of  management  as  of  the  date  such  statements  are  made  and  are  based  on  various  assump8ons,  such  as  the  con8nued  poli8cal  stability  in  Northern  Ireland  and  Norway,  that  permits  required  for  the  Company’s  opera8ons  will  be  obtained  in  a  8mely  basis  in  order  to  permit  the  Company  to  proceed  on  schedule  with  its  planned  explora8on  and  development   programs,   that   skilled   personnel   and   contractors   will   be   available   as   the   Company’s   opera8ons   con8nue   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   con8nue   raising   the   necessary   capital   to   finance   its   opera8ons   and   realize   on   mineral   resource   es8mates,   and   that   the   assump8ons   contained   in   the  Company’s  technical  report  en8tled  “A  Preliminary  Economic  Assessment  of  the  Curraghinalt  Gold  Deposit,  Tyrone  Project,  Northern  Ireland”,  dated  September  6,  2012  (the  “PEA”)  are  accurate  and  complete.    Forward  looking  statements  involve  known  and  unknown  risks,  uncertain8es  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,   compe88ve,   poli8cal   and  social   uncertain8es;   the   actual   results   of   current   and   future   explora8on   ac8vi8es;   the   actual   results   of   reclama8on   ac8vi8es;   conclusions   of   economic   evalua8ons;   changes   in   project   parameters   and/or  economic  assessments  as  plans  con8nue  to  be  refined;  future  prices  of  metals;  possible  varia8ons  of  mineral  grade  or  recovery  rates;  the  risk  that  actual  costs  may  exceed  es8mated  costs;  failure  of  plant,  equipment   or   processes   to   operate   as   an8cipated;   accidents,   labour   disputes   and   other   risks   of   the   mining   industry;   poli8cal   instability;   delays   in   obtaining   governmental   approvals   or   financing   or   in   the  comple8on  of  development  or  construc8on  ac8vi8es,  as  well  as  those  factors  discussed  in  the  sec8on  en8tled  “Risk  Factors”  in  the  Company’s  Annual  Informa8on  Form.    Although  the  Company  has  agempted  to  iden8fy  important  factors  that  could  cause  actual  ac8ons,  events  or  results  to  differ  materially  from  those  described  in  forward  looking  statements,  there  may  be  other  factors  that  cause  ac8ons,  events  or  results  to  differ  from  those  an8cipated,  es8mated  or  intended.  Forward  looking  statements  contained  herein  are  made  as  of  the  date  of  this  presenta8on  and  the  Company  disclaims  any  obliga8on  to  update  any  forward  looking  statements,  whether  as  a  result  of  new  informa8on,  future  events  or  results,  except  as  may  be  required  by  applicable  securi8es  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  an8cipated  in  such  statements.    Accordingly,  readers  should  not  place  undue  reliance  on  forward  looking  statements.    For   addi8onal   informa8on   on   the   Curraghinalt   project,   please   see   the   PEA,   prepared   by   B.   Terrence   Hennessey,   P.Geo.,   Barnard   Foo,   P.   Eng.,   Bogdan   Damjanović,   P.   Eng.,   André   Villeneuve,   P.   Eng.,   and  Christopher  Jacobs,  CEng  MIMMM,  of  Micon  Interna8onal  Limited,  which  is  available  on  SEDAR  at  and  on  the  Company’s  website  at  Michele  L.  Cote,  MSc.,  P.  Geo.,  Vice  President  Explora8on  of  the  Company,  is  the  Qualified  Person  (for  the  purposes  of  Na8onal  Instrument  43-­‐101)  who  reviewed  and  approved  the  technical  informa8on  contained  in  this  presenta8on.       2  
  3. 3. Capital  Structure   TSX,  OTCQX:   DNA,  DRLDF   STOCK  PRICE   Shares  outstanding:   89.5  million   $0.98 April 11, 2013 Fully  diluted  :   (March  28,  2013)   97.4  million   $2,000.00   $2.00   Market  cap:   $1,950.00   (April  4,  2013)   $87.8  million   DNA   $1,900.00   Average  volume:   (30  day)   80,430   $1,850.00   $1.50   52  Week  Range:   $1.90  -­‐  $0.62   $1,800.00   Insider  ownership:   (approximate)   6%   $1,750.00   $1.00   $1,700.00   Cash  balance:   (as  at  December  31,  2012)   $22.8  million   $1,650.00   $0.50   Gold  Price   $1,600.00   Jamie  Sprag    Steve  Parsons   $1,550.00     Analyst  coverage:   Craig  Stanley        Laurie  Cur8s   $0.00   $1,500.00   Dec   Feb   Apr   Jun   Aug   Oct   Dec   Feb   Apr     2011   2012   2012   2012   2012   2012   2012   2013   2013   John  Hayes    Sasha  Bukacheva  All  dollars  quoted  in  $  CAD   3  
  4. 4. The  Board:  A  Track  Record  of  Discovery  and  Development   PATRICK  F.  N.  ANDERSON   KEITH  D.  MCKAY   CHIEF  EXECUTIVE  OFFICER   CHIEF  FINANCIAL  OFFICER   Former  CEO  of  Aurelian  Resources     Former  CFO  of  Aurelian  Resources     Also  Director  of  ConWnental  Gold     COLIN  K.  BENNER   THOMAS  J.  OBRADOVICH   CHAIRMAN  OF  DELTA  MINERALS  AND  AURICO  GOLD   CHAIRMAN     Also  Director  of  Mercator  Minerals,  Lundin  Mining,     Chairman  of  Lago  Dourado  Minerals   Former  CEO  of  Young-­‐Davidson  Mines   Former  Director  of  Aurelian  Resources   JOSEPH  F.  CONWAY   SEAN  E.  O.  ROOSEN   CEO  OF  PRIMERO  MINING  CORP.   CEO  OF  OSISKO  MINING  CORPORATION   Former  CEO  of  IAMGOLD   Also  Director  of  Astur  Gold   RONALD  P.  GAGEL   ARI  B.  SUSSMAN   Former  SVP  and  CFO  of  FNX  Mining   CEO  OF  CONTINENTAL  GOLD  LIMITED   4
  5. 5. High-­‐Grade  Targets  in  Low  Risk  JurisdicWons   NORTHERN  IRELAND   §  Gold  resource  covers  a  frac8on  of  known   mineraliza8on   §  High-­‐grade  2.7M  ounce  gold  resource   (all  categories)1   Norway   −  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   Northern   2.23  million  contained  ounces   Ireland   §  Posi8ve  PEA  shows  us  a  high  margin  and   low  capex  producer   NORWAY   §  1.3  M  hectares  of  explora8on  permits   §  En8re  greenstone  belts   §  Over  15  precious  metals  targets  iden8fied  in   2012  season  1  Refer  to  press  release  dated  Nov.  30,  2011  en8tled  “Dalradian  Announces  Resource  Increase  at  Curraghinalt”  at   5
  6. 6. Northern  Ireland    §  Our  flagship  asset:  Curraghinalt  high-­‐grade  lode   Gold   gold  deposit   Base  Metals   Salt  Mine  §  Excellent  regional  infrastructure   Scotgold  §  Over  84,000  hectares  under  license   Permiged  in  2012  §  Recent  surge  in  gold  sector   Underground   Cononish   Conroy   Salt  Mine   +1M  ounce  resource   NORTHERN     IRELAND   Galantas  Gold   Curraghinalt   Lonmin   Permiged  in  2007   Cavanacaw   ClonWbret   Boliden   In  produc8on   Croagh  Patrick   Tara   Parys  Mountain   Vedanta  Resources   Irish  Salt   Mining   In  produc8on   Galmoy   Avoca   Gor8n   Silvermines   Gwynfynydd   Pallas  Green   Lisheen   Clogau   Galantas   Gold   Omagh   BELFAST   Allihies  Copper   IMC  ExploraWon   Mines   354  g/t  gold  over  1.5m   Conroy   Lundin   Diamonds   &  Gold   Xstrata   In  produc8on   Gold  Mines  of  Wales   Feasibility   U/G  grab  sample  -­‐  263  g/t  gold     South  CroZy   6  
  7. 7. Permi]ng  is  Possible   Curraghinalt  Clear  Cut  Logging  at  Gor8n  Glen  Forest  Park   Cavanacaw  Open  Pit  Approx  30  km  SW   Curraghinalt   GorWn   125  Metres 300  Metres DG3   Alwories  Quarry   0 1 2 kilometres Greencastle  Quarry   7  
  8. 8. News  Flow  2012/2013   2012   Q1   Q2   Q3   Q4   JAN   FEB   MAR   APR   MAY   JUN   JUL   AUG   SEP   OCT   NOV   DEC   PosiWve  PEA   Curraghinalt  Drilling:   More  Alwories  Intercepts:   Alwories  discovery   $28.2  million  bought   •  3.35m  @  13.80  g/t  Au   Completes  airborne   1.47m  @  23.62  g/t  Au   •  4.72m  @  14.82  g/t  Au   deal  financing   •  3.75m  @  10.43  g/t  Au   geophysical  survey   2.22m  @  14.07  g/t  Au   •  1.28m  @  30.58  g/t  Au   announced   •  1.48m  @  22.83  g/t  Au   Water  discharge   C-­‐veins  show  wall   Curraghinalt  Drilling:   permit  in  hand   Micon  appointed  as   rock  carry  gold   •  2.34m  @  47.94  g/t  Au   lead  consultant  for  PEA   •  3.97m  @  38.00  g/t  Au   Soil  geochem  grid   43-­‐101  Technical   iden8fies  new  targets     Report  filed   Curraghinalt  Drilling:   •  1.7m  @  17.55  g/t  Au   2013   •  2.47m  @  18.99  g/t  Au   Q1   Q2   JAN   FEB   MAR   APR   ApplicaWon  Submifed  for   Underground  ExploraWon   Development   2013  Explora8on   Curraghinalt  Drilling   Program  Announced   Deep  Hole:   •  1.54m  @  30.13  g/t  Au   Fallagh  Prospect     Step-­‐Out:   announced  with  float   •  5.35m  @  6.60  g/t  Au   samples  of:   •  30.30  g/t  Au   •  29.20  g/t  Au   8
  9. 9. ExploraWon   9
  10. 10. Cross  SecWon  12-­‐CT-­‐156   CROSS-­‐SECTION  A  –  A’   Adit   10
  11. 11. PotenWal  to  Expand  the  Resource  §  Assembled  80  km  of  historic  core   in  a  modern  facility  §  Most  was  found  unsampled  §  Iden8fied  a  mineralized  oblique   vein  set   Dalradian  Gold  Omagh,     600  m  hole  yielded  over  1000  veinlets  11 Core  Facility   11
  12. 12. PotenWal  to  Expand  the  Resource  §  Q4  resource  update  will  include:   –  35,000+  metres  of  new  drilling  &  unsampled  historical  veins   ‘Resource’  or  ‘D’  Vein   Newly  idenWfied  ‘C’  Vein   Plan  View  Looking  North  12 12
  13. 13. Not  a  Trend  but  a  District   GLACIATED  TERRAIN  WITH  MINIMAL  OUTCROP   Golan  Burn   Outcropping  veins  including   60cm  @  61.43  g/t  Au   Afagh  Burn   2.47m  @  18.99  g/t  Au   8  km Curraghinalt     400  m  Step-­‐out   Alwories  Discovery  Holes   Deposit   3.2m  @  5.34  g/t  Au   4.72m  @  14.82  g/t  Au   2.22m  @  14.10  g/t  Au  Curraghinalt   1.47m  @  23.6  2g/t  Au  Trend   Scotch  Town   Peak  of  10.52  g/t  Au   In  mineralized  boulders     “Fallagh”  New  Au  Prospect   1700    30.30  g/t  Au,         m      29.20  g/t  Au  &   Curraghinalt  Deposit      17.25  g/t  Au    in  Float   Resource  as  at  Nov  2011  –     Measured:  0.01  Moz  Au                                          (0.02MT  @  21.51  g/t)   Indicated:  0.46  Moz  Au   Curraghinalt  Trend                                        (1.11MT  @  12.84  g/t)   Veins  in  Current  Resource Alwories   Inferred:  2.23  Moz  Au   1.88  m  @  20.8  g/t  Au  in   Interpreted  Veins Historic  Findings                                        (5.45  MT  @  12.74  g/t)   vein  in  quarry  Intercept  in  hole  11-­‐CT-­‐99  projected  up  dip  to  170m  mSL   13
  14. 14. ExploraWon  Summary  §  In  the  last  2  years…   –  >4-­‐fold  increase  in  contained  ounces   –  Implemented  a  modern  explora8on  organiza8on  §  Deposit  is  open  in  all  direc8ons  §  Successfully  mapping  high  grade  shoots  §  “C”  veinlet  swarms,  a  poten8al  game  changer…   –  Reduce  dilu8on   –  Stand-­‐alone  ounces?   –  Poten8al  for  alterna8ve  mining  methods  §  Big  trend  &  excellent  explora8on  tools    §  Clear  strategy,  competent  team     14
  15. 15. Preliminary  Economic  Assessment   3  YEAR  TRAILING   5  YEAR  TRAILING   KEY  PEA  DATA*   AVERAGE  GOLD  PRICE:   AVERAGE  GOLD  PRICE:   NPV  with  8%  discount  rate  (A_er-­‐tax)   $467  million   $331  million   IRR  (A_er-­‐tax)   41.9%   33.4%   Average  Annual  Produc8on   145,000  ounces/year   Processing  Rate   1,700  tonnes/day   Life  of  Mine   15  years   Ini8al  Capex  ($38M  con8ngency)   $192  million   Cash  Costs   $532/ounce  or  $125/tonne   Diluted  Grade   8.1  g/t  Au   Gold  Recovery   92%   PEA   results   released   on   July   25,   2012.     The   PEA   is   preliminary   in   nature.     It   includes   inferred   mineral   resources   that   are   considered   too   specula8ve   geologically   to   have   the   economic   considera8ons   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.  *  Prepared  by  Micon  Interna8onal  Limited  All  dollars  quoted  in  $  USD  unless  stated  otherwise   15 15
  16. 16. Underground  ExploraWon  Development  GETTING  BACK  UNDERGROUND  §  2,000  metres  planned    §  Bulk  sample  for  metallurgical  test  work  §  Demonstrate  vein  con8nuity  §  Convert  ounces  to  Measured  &  Indicated      PERMITTING  §  Applica8on  submiged  Feb  18,  2013  §  In  Q1  2013  the  company  finalized  the  pre-­‐ consulta8on  process,  which  included:   –  Town  hall  mee8ngs   –  Landowner  engagement   –  Detailed  presenta8ons  to  involved   government  agencies   –  Site  visits  by  government  officials   16  
  17. 17. Becoming  Part  of  the  Community   17
  18. 18. Norway:   “Let  the  Treasure  Hunt  Begin”  Industry  Minister,  Trond  Giske  at  Press  conference  announcing  new  direc8on  in  mineral  strategy  for  Norway  (Oct.  2010)   18
  19. 19. Land  PosiWon   NORTHERN  NORWAY   Greenstone  Belts   Volcanic  Belts   NORWAY   &  Metasediments   SWEDEN   FINLAND   Bidjovagge   RUSSIA   NORWAY   Pechenga   Pasvik Karasjok RUSSIA   Kautokeino Saka€lampi   Ki€lä   SOUTHERN  NORWAY   Rombak Kongsberg FINLAND   SWEDEN   Oslo   Northern  Norway   §  Four  concessions  over  three  greenstone  belts   and  a  basement  window   Southern  Norway   §  Kongsberg  concession  hos8ng  an  historic  silver  mining  district   19
  20. 20. 2012  ExploraWon  Norway   Kautokeino   §  Largest  of  3  greenstone  belts   §  10  gold-­‐in-­‐+ll  anomalies  iden+fied   §  2,476  8ll  samples  collected   §  48  rock  samples  collected   §  Completed  8ll  orienta8on  survey  around   former  producing  gold  mine,  Bidjovagge   Sampling  Program   Kongsberg   §  Historic  silver  mining  district  with  produc8on   of  40+  million  ounces  with  average  grades  of   356  g/t  silver   §  Five  silver  targets  iden+fied     §  462  stream  sediment  samples  completed   §  156  rock  samples  completed,  including:   –  278  g/t  of  silver     –  61  g/t  of  silver  with  21.60%  zinc   Historical  Workings  in  the  Kongsberg   –  109  g/t  of  silver  with  16.20%  zinc  These  poten8al  grades  are  conceptual  in  nature.  There  has  been  insufficient  explora8on  to  define  a  mineral  resource  and  it  is  uncertain  if  further  explora8on  will  result  in  the  target  being  delineated  as  a  mineral  resource.   20
  21. 21. Where  We  Are  –  Where  We’re  Headed     NORTHERN  IRELAND  §  In  the  last  2  years…   –  >4-­‐fold  increase  in  contained  ounces   –  Implemented  a  modern  explora8on   organiza8on  §  Deposit  is  open  in  all  direc8ons  §  Big  trend  &  proven  explora8on  method   (prospec8ng  >  soil  sampling    >  drilling)  §  Resource  upgrade  expected  §  Underground  permit  expected      NORWAY  §  We  are  posi8oned  §  Baseline  studies  underway   21
  22. 22. The European Explorer Patrick F. N. Anderson Chief Executive Officer Investor Relations Shae-Lynn Mathers Director, Investor Relations 416.583.5622 Trading Symbol: DNA on TSX DRLDF on OTCQX Corporate Office: Dalradian Resources Inc. 155 Wellington Street West Suite 2920 Toronto, Ontario Canada M5V 3H1 22