Dalradian corporate presentation feb 5 2013_web


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Dalradian corporate presentation feb 5 2013_web

  1. 1. Sample  from  the  T17  vein  –  188  g/t  of  gold,  103  g/t  of  silver  and  5.07%  of  copper    The  European  Explorer      │    February  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  the  comple8on  of  the  acquisi8on  (the  “Acquisi8on”)  by  the  Company  from  a  group   of   private   vendors   of   approximately   1.7   million   hectares   of   mineral   rights   over   four   greenstone   belts   and   a   historic   silver   mining   camp   in   Norway,   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.   OYen,   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  approvals  from  the  Toronto  Stock   Exchange   and   the   Norwegian   Directorate   of   Mining   will   be   obtained   in   respect   of   the   Acquisi8on,   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  drilling  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   project   economic,   or   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  Preliminary  Economic  Assessment  rela8ng  to  the  Curraghinalt  Deposit  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;  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   excel   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  abempted  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.  Some  technical  data  in  this  presenta8on  was  taken  from  the    technical  report  en8tled  “An  Updated  Mineral  Resource  Es8mate  for  the  Curraghinalt  Gold  Deposit,  Tyrone  Project,  County  Tyrone  and  County  Londonderry,   Northern   Ireland   dated   January   10,   2012,   prepared   by   B.   Terrence   Hennessey,   P.Geo.,   and   Dibya   Kan8   Mukhopadhyay,   M.Sc.,   MAusIMM,   of   Micon   Interna8onal   Limited   (the   Technical  Report ).  Michele  L.  Cote,  MSc.,  P.  Geo.,  Dalradian  Resources,  is  the  Qualified  Person  who  supervised  the  prepara8on  of  the  explora8on  technical  data  for  in  this  presenta8on.  The   technical   informa8on   contained   in   this   news   release   is   based   upon   informa8on   prepared   by   Messrs.   Hennessey,   Jacobs,   Villeneuve,   Damjanović   and   Foo   of   Micon   Interna8onal   Ltd.,   who   are   each   a  Qualified  Person  as  defined  by  NI  43-­‐101.  Messrs.  Hennessey,  Jacobs,  Villeneuve,  Damjanović  and  Foo  are  independent  of  Dalradian  as  defined  by  NI  43-­‐101.         2
  3. 3. Capital  Structure  –  IPO  August  2010   TSX,  OTCQX:   DNA,  DRLDF   STOCK  PRICE   Shares  outstanding:   89.5  million   $1.33 Fully  diluted  :   97.5  million   January 29, 2013 (January  17,  2013)   $24.00   Market  cap:   $119.1  million   $2.00   (January  29,  2013)   DNA   $22.00   Average  volume:   62,039   (30  day)   $1.50   $20.00   Aug  2010  IPO  @  $1.50   $39.1  million   Feb  2012  Financing  @  $2.00   $27.8  million   $18.00   Insider  ownership:   6%   $1.00   (approximate)   $16.00   Cash  balance:   $28.9  million   (as  at  September  30,  2012)   $14.00   $0.50   BMO  Junior   Gold  Index  ETF   $12.00   John  Hayes     $0.00   $10.00   Analyst  coverage:   Dec  2011   Dec  2012   Jan  2012   Jun  2012   Jul  2012   Feb  2012   Mar  2012   Aug  2012   Sep  2012   Jan  2013   Apr  2012   Nov  2012   Oct  2012   May  2012   Jamie  Sprab     Craig  Stanley  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  Con]nental  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. Targe]ng  High-­‐Grade  Deposits  in  Low  Risk  Jurisdic]ons   NORTHERN  IRELAND   §  Posi8ve  PEA   §  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   §  Ac8ve  drilling  &  explora8on   NORWAY   §  1.3  M  hectares  of  explora8on  permits   §  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  www.dalradian.com   5
  6. 6. Northern  Ireland    §  Our  flagship  asset:  Curraghinalt  mesothermal   Gold   high-­‐grade  gold  deposit   Base  Metals   Salt  Mine  §  Excellent  regional  infrastructure   Scotgold  §  Over  84,000  hectares  under  license   Permibed  in  2012  §  Recent  discoveries  demonstrate  untapped   Underground   Cononish   poten8al   Conroy   Salt  Mine   +1M  ounce  resource   NORTHERN     IRELAND   Galantas  Gold   Curraghinalt   Lonmin   Permibed  in  2007   Cavanacaw   Clon]bret   Boliden   In  produc8on   Croagh  Patrick   Tara   Parys  Mountain   Vedanta  Resources   Irish  Salt   Mining   In  produc8on   Galmoy   Avoca   Gor8n   Silvermines   Gwynfynydd   Pallas  Green   Lisheen   Clogau   Cavanacaw   Galantas   Omagh   BELFAST   Gold   Allihies  Copper   IMC  Explora]on   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  Cro`y   6  
  7. 7. Ac]ve  Resource  Industry   Curraghinalt   Logging  at  Gor8n  Glen  Forest  Park   Curraghinalt  Adit  Construc8on   Curraghinalt   Gor]n   DG3   Alwories  Quarry   0 1 2 kilometres Greencastle  Quarry   7
  8. 8. Curraghinalt  2012   2012   Q1   Q2   Q3   Q4   JAN   FEB   MAR   APR   MAY   JUN   JUL   AUG   SEP   OCT   NOV   DEC   Posi]ve  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   JAN   FEB   2013  Explora8on   Program  Announced   Fallagh  Prospect     announced  with  float   samples  of:   •  30.30  g/t  Au   •  29.20  g/t  Au   8
  9. 9. Explora]on   9
  10. 10. Surface  Explora]on   10
  11. 11. Cross  Sec]on  12-­‐CT-­‐156   CROSS-­‐SECTION  A  –  A’   Adit   11
  12. 12. C  Veins  –  Poten]al  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  12 Core  Facility   12
  13. 13. §  Evalua8ng  the  poten8al  contribu8on  to  the  resource  at  Curraghinalt   ‘Resource’  or  ‘D’  Vein   Newly  iden]fied  ‘C’  Vein   Plan  View  Looking  North  13 13
  14. 14. Not  a  Trend  but  a  District   GLACIATED  TERRAIN  WITH  MINIMAL  OUTCROP   Golan  Burn   Outcropping  veins  including   60cm  @  61.43  g/t  Au   Ajagh  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   14
  15. 15. Explora]on  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  game  changer…   –  Reduce  dilu8on   –  Stand-­‐alone  ounces?   –  Poten8al  for  alterna8ve  mining  methods  §  Big  trend  &  excellent  explora8on  tools    §  Clear  strategy,  competent  team     15
  16. 16. Preliminary  Economic  Assessment   3  YEAR  TRAILING   5  YEAR  TRAILING   KEY  PEA  DATA*   AVERAGE  GOLD  PRICE:   AVERAGE  GOLD  PRICE:   NPV  with  8%  discount  rate  (AYer-­‐tax)   $467  million   $331  million   IRR  (AYer-­‐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   16 16
  17. 17. Underground  Explora]on  Development  GETTING  BACK  UNDERGROUND  §  2,000  metres  planned    §  Bulk  sample  for  metallurgical  test  work  §  Prove  up  vein  con8nuity  §  Convert  ounces  to  Measured  &  Indicated  §  Demonstrate  mining  method  works    PERMITTING  §  Working  with  government  to  op8mize  the   permi|ng  process  §  Pre  consulta8on  permi|ng  discussions  with   10+  agencies  §  Formal  submission  of  applica8on  for   underground  explora8on  development   17  
  18. 18. Becoming  Part  of  the  Community   18
  19. 19. Norway:   “Let  the  Treasure  Hunt  Begin”  Industry  Minister,  Trond  Giske  at  Press  conference  announcing  new  direc8on  in  mineral  strategy  for  Norway  (Oct.  2010)   19
  20. 20. Land  Posi]on   NORTHERN  NORWAY   Greenstone  Belts   Volcanic  Belts   NORWAY   &  Metasediments   SWEDEN   FINLAND   Bidjovagge   RUSSIA   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   20
  21. 21. 2012  Explora]on  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   Explora8on  Team  Norway   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   21
  22. 22. Moving  Ahead   NORTHERN  IRELAND   Advanced  Explora]on       §  Grow  Exis8ng  Resource  EXPLORATION   §  Realize  poten8al  of  district   §  Explore  Along  Strike  from  Curraghinalt   §  Explore  Regional  Targets  for  New  Discovery   Underground  Development   §  Explora8on  development  DEVELOPMENT   planning  applica8on  being   prepared  for  submission  NORWAY   Greenfields  Explora]on   EXPLORATION   §  Extensive  program  to  iden8fy  priority   explora8on  targets   22
  23. 23. The European Explorer Patrick F. N. Anderson Chief Executive Officer Investor Relations Shae-Lynn Mathers Director, Investor Relations smathers@dalradian.com 416.583.5622 Trading Symbol: DNA on TSX Executive Office: Dalradian Resources Inc. 155 Wellington Street West Suite 2920 Toronto, Ontario Canada M5V 3H1 www.dalradian.com 23