Dalradian corporate presentation dec 2013 final


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Dalradian corporate presentation dec 2013 final

  1. 1. 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 Patrick F. N. Anderson Chief Executive Officer
  2. 2. 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
  4. 4. 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
  5. 5. Listing and Coverage ANALYST COVERAGE: (targets range from $1.90-$0.80) Bart Jaworski Michael Curran Mike Kozak TSX: DNA STOCK PRICE Analyst Targets $2.00 $1.90 $1.75 $1.75 $1.60 $1.50 $1.50 $1.25 Jamie Spratt Steve Parsons Laurie Curtis, Vanessa Gravina $1.10 $1.00 $1.00 $0.80 $0.75 $0.50 $0.56 November 28, 2013 Joe Mazumdar $0.25 $0.00 John Hayes All dollars quoted in $ CAD Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct 2012 2012 2012 2012 2012 2012 2013 2013 2013 2013 2013 5
  6. 6. In Three Years We Have: 2013 2012 2011 2010 2009 • Project Acquisition December • 600 k ounce gold resource1 • Increased to 1.5 M ounce gold resource1 • IPO - August • 7 rigs onsite • Increased to 2.7 M ounce gold resource1 • Robust PEA announced • New discovery Alwories • UG planning permission • VP Project Development hired • Extensive drilling and re-sampling completed 1 Refer to appendix or press release dated Nov. 30, 2011 entitled “Dalradian Announces Resource Increase at Curraghinalt” at www.dalradian.com 6
  7. 7. The Board: A Track Record of Discovery, Development & Production PATRICK F. N. ANDERSON JONATHAN A. RUBENSTEIN CHIEF EXECUTIVE OFFICER Director of Eldorado Gold Corporation Founder & Former CEO of Aurelian Resources Director of Detour Gold ‘08 – PDAC International Mineral Discovery Chairman & Director of MAG Silver Corp. ‘08 – Northern Miner Man of the Year Former Director of Aurelian Resources, Sutton Resources, Canico Resource Corp & Cumberland Resources RONALD P. GAGEL Former SVP and CFO of FNX Mining ARI B. SUSSMAN Founder & CEO OF CONTINENTAL GOLD LIMITED 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 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 ‘06 – Prospector of the Year - Quebec ‘08 – Prospector of the Year - Canada ‘09 – Northern Miner Man of the Year 7
  9. 9. Metal Production in Ireland & the UK  Our flagship asset: Curraghinalt high-grade lode gold deposit Gold Base Metals Salt Mine  Excellent regional infrastructure  Over 84,000 hectares under license NORTHERN IRELAND Curraghinalt Scotgold Permitted Curraghinalt Gold Deposit Cavanacaw Croagh Patrick Galantas Gold Irish Salt Mining Vedanta Resources In production Clontibret Tara Galmoy Silvermines Pallas Green Omagh Avoca Lisheen Gwynfynydd Clogau IMC Exploration 354 g/t gold over 1.5m Allihies Copper Mines Xstrata Feasibility Boliden In production Parys Mountain BELFAST Conroy Diamonds & Gold Underground Salt Mine Galantas Gold In production Lonmin Gortin Cononish Conroy +1M ounce resource Lundin In production Gold Mines of Wales U/G grab sample - 263 g/t gold South Crofty 9
  10. 10. County Tyrone is Resource Friendly Curraghinalt Clear Cut Logging at Gortin Glen Forest Park Cavanacaw Open Pit Approx 30 km SW Curraghinalt Gortin 125 Metres DG3 Alwories Quarry 0 1 2 kilometres Greencastle Quarry 10
  11. 11. Social License “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.” “The employment produced from this venture is critical to local work forces at this time. I urge you to grant approval.” Awarded Top 30 IrishNorth American Companies for 2012 & 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 “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.” “Dalradian makes every effort to maintain good community relations, protect the environment and work with all local people providing employment and training.” 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. Dalradian supports the local MS Society 11
  13. 13. Development of a High-Grade Deposit  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 13
  14. 14. A 12km Gold Trend GLACIATED TERRAIN WITH MINIMAL OUTCROP Golan Burn Outcropping veins including 60cm @ 61.43 g/t Au Attagh Burn 2.47m @ 18.99 g/t Au 400 m Step-out Curraghinalt Deposit 3.2m @ 5.34 g/t Au Curraghinalt Trend Alwories Discovery Holes 4.72m @ 14.82 g/t Au 2.22m @ 14.10 g/t Au 1.47m @ 23.6 2g/t Au 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) Curraghinalt Trend Veins in Current Resource Intersected Veins Historical Findings Geochem Anomaly Intercept in hole 11-CT-99 projected up dip to 170m mSL 14
  15. 15. Mesothermal Vein System CROSS-SECTION A – A’ ADIT 15
  16. 16. Curraghinalt: A Growing Resource A’ A 3.6 km 4.72 m @ 14.82 g/t Au Curraghinalt Alwories 0m asl 2.22 m @ 14.1 g/t Au 2.47 m @ 5.19 g/t Au -500m asl 1.47 m @ 23.6 g/t Au 2007 Resource 3.20 m @ 5.34 g/t Au 8.34 m @ 5.84 g/t Au 2010 Resource -1000m asl 259500E 259000E 258500E Drilling post 2011 Resource 258000E 2012 Interpreted vein extents 257500E 2011 Resource 16
  18. 18. Preliminary Economic Assessment KEY PEA DATA* NPV with 8% discount rate (After-tax) IRR (After-tax) Average Annual Production Processing Rate Life of Mine Initial Capex ($38M contingency) Cash Costs 3 YEAR TRAILING AVERAGE GOLD PRICE: $1378/ounce 5 YEAR TRAILING AVERAGE GOLD PRICE: $1,166/ounce $467 million $331 million 41.9% 33.4% 145,000 ounces/year 1,700 tonnes/day 15 years $192 million $532/ounce or $125/tonne Diluted Grade 8.1 g/t Au Gold Recovery 92% Payback  2 years At $814 gold price (10-year trailing average), after-tax IRR of 20.2% * 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 18 18
  20. 20. Curraghinalt Adit Working off existing infrastructure, we plan to begin advancing on the veins 20
  21. 21. Underground Exploration Development  Dalradian has received planning permission to complete approximately 2,000 m of underground exploration development Existing Exploration Tunnel  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 Proposed Tunnel Extensions at Sub-Level No. 1 Vein Proposed Tunnel Extensions at 170 M Level Proposed Access Ramp to Sub-Level 106-16 Vein
  22. 22. Conceptual Sublevel Development 2,000 m Planned with the Goal to: Test mining and backfill methods. • Investigate geotechnical and hydrogeological conditions. • Produce a bulk sample for metallurgical test work. • Test the permitting process. No. 1 BEND CROW PLANNED DEVELOPMENT ROAD • SHEEPDIP Convert additional resources to Measured and Indicated. MULLAN • T17 Demonstrate continuity of thickness and grade of mineralized veins. 106_16 • EXISTING DEVELOPMENT PLANNED DEVELOPMENT PLANNED STOPING 22 22
  23. 23. Underground Project Timeline  Months 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Receipt of planning permission with final terms and conditions Surface Work Exploration Tunneling Test Stoping Hydrogeology & Geotechnical Studies Backfill testing Metallurgical Testing 23
  24. 24. Upcoming milestones Now that we have a positive planning recommendation by SPD  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 24
  25. 25. 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
  26. 26. Land Position NORTHERN NORWAY Greenstone Belts Volcanic Belts & Metasediments NORWAY Bidjovagge SWEDEN NORWAY FINLAND Pasvik Pechenga RUSSIA Kautokeino Kittilä Karasjok RUSSIA Sakattilampi Rombak SOUTHERN NORWAY FINLAND Kongsberg SWEDEN Northern Norway Oslo  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 26
  27. 27. 43-101 Resource 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 Norway 2010 RESOURCE  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 Northern Ireland 2011 RESOURCE  High-grade 2.7M ounce gold resource (all categories)1 − − Indicated: 1.11 MT grading 12.84 g/t Au for 460,000 contained ounces − 1 Measured: 0.02 MT grading 21.51 g/t Au for 10,000 contained ounces Inferred: 5.45 MT grading 12.74 g/t Au for 2.23 million contained ounces Refer to press release dated Nov. 30, 2011 entitled “Dalradian Announces Resource Increase at Curraghinalt” at www.dalradian.com 27