Dalradian corporate presentation july 26 2012 final


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Dalradian corporate presentation july 26 2012 final

  1. 1. The  European  Explorer    │    Investor  Presenta4on  July  2012   Patrick  F.  N.  Anderson   Chairman  and  Chief  Execu4ve  Officer  
  2. 2. Forward-­‐Looking  Statement  &  Qualified  Persons  This  presenta4on  contains  “forward‑looking  informa4on”  which  may  include,  but  is  not  limited  to,  statements  with  respect  to  the  comple4on  of  the  acquisi4on  (the  “Acquisi4on”)  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  opera4ng  performance  of  the  Company  and  its  mineral  projects,  the  future  price  of  metals,  the  es4ma4on  of  mineral  resources,  the  realiza4on  of  mineral  resource  es4mates,  the  4ming  and  amount  of  es4mated  future  produc4on,  costs  of  produc4on,  capital,  opera4ng  and  explora4on  expenditures,  costs  and  4ming  of  the  development  of  new  deposits,  costs  and  4ming  of  future  explora4on,  requirements  for  addi4onal  capital,  government  regula4on  of  mining  opera4ons,  environmental  risks,  reclama4on  expenses,  4tle  disputes  or  claims  and  limita4ons  of  insurance  coverage.  OTen,  but  not  always,  forward‑looking  statements  can  be  iden4fied  by  the  use  of  words  and  phrases  such  as  “plans,”  “expects,”  “is  expected,”  “budget,”  “scheduled,”  “es4mates,”  “forecasts,”  “intends,”  “an4cipates,”  or  “believes”  or  varia4ons  (including  nega4ve  varia4ons)  of  such  words  and  phrases,  or  state  that  certain  ac4ons,  events  or  results  “may,”  “could,”  “would,”  “might”  or  “will”  be  taken,  occur  or  be  achieved.  Forward-­‐looking  statements  are  based  on  the  opinions  and  es4mates  of  management  as  of  the  date  such  statements  are  made  and  are  based  on  various  assump4ons,  such  as  approvals  from  the  Toronto  Stock  Exchange  and  the  Norwegian  Directorate  of  Mining  will  be  obtained  in  respect  of  the  Acquisi4on,  the  con4nued  poli4cal  stability  in  Northern  Ireland  and  Norway,  that  permits  required  for  the  Company’s  opera4ons  will  be  obtained  in  a  4mely  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  opera4ons  con4nue  to  grow,  that  the  price  of  gold  will  be  at  levels  that  render  the  project  economic,  or  that  the  Company  will  be  able  to  con4nue  raising  the  necessary  capital  to  finance  its  opera4ons  and  realize  on  mineral  resource  es4mates.  Forward‑looking  statements  involve  known  and  unknown  risks,  uncertain4es  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,  compe44ve,  poli4cal  and  social  uncertain4es;  the  actual  results  of  current  explora4on  ac4vi4es;  actual  results  of  reclama4on  ac4vi4es;  conclusions  of  economic  evalua4ons;  changes  in  project  parameters  as  plans  con4nue  to  be  refined;  future  prices  of  metals;  possible  varia4ons  of  mineral  grade  or  recovery  rates;  failure  of  plant,  equipment  or  processes  to  operate  as  an4cipated;  accidents,  labour  disputes  and  other  risks  of  the  mining  industry;  poli4cal  instability;  delays  in  obtaining  governmental  approvals  or  financing  or  in  the  comple4on  of  development  or  construc4on  ac4vi4es,  as  well  as  those  factors  discussed  in  the  sec4on  en4tled  “Risk  Factors”  in  the  Company’s  Annual  Informa4on  Form.    Although  the  Company  has  a]empted  to  iden4fy  important  factors  that  could  cause  actual  ac4ons,  events  or  results  to  differ  materially  from  those  described  in  forward‑looking  statements,  there  may  be  other  factors  that  cause  ac4ons,  events  or  results  to  differ  from  those  an4cipated,  es4mated  or  intended.  Forward‑looking  statements  contained  herein  are  made  as  of  the  date  of  this  presenta4on  and  the  Company  disclaims  any  obliga4on  to  update  any  forward‑looking  statements,  whether  as  a  result  of  new  informa4on,  future  events  or  results,  except  as  may  be  required  by  applicable  securi4es  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  an4cipated  in  such  statements.    Accordingly,  readers  should  not  place  undue  reliance  on  forward‑looking  statements.  Some  technical  data  in  this  presenta4on  was  taken  from  the    technical  report  en4tled  “An  Updated  Mineral  Resource  Es4mate  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  Kan4  Mukhopadhyay,  M.Sc.,  MAusIMM,  of  Micon  Interna4onal  Limited  (the   Technical  Report ).  Mar4n  Moloney,  BSc.(hons),  M.AIG,  Senior  Geologist,  Dalradian  Resources,  is  the  Qualified  Person  who  supervised  the  prepara4on  of  the  explora4on  technical  data  for  Northern  Ireland  in  this  presenta4on.  Michele  L.  Cote,  MSc.,  P.  Geo.,  Dalradian  Resources,  is  the  Qualified  Person  who  supervised  the  prepara4on  of  the  explora4on  technical  data  for  Norway  in  this  presenta4on.  John  McCombe,  PEng,  Chief  Opera4ng  Officer,  Dalradian  Resources  Inc.,  is  the  Qualified  Person  who  supervised  the  prepara4on  of  the  development  technical  data  in  this  presenta4on.  The  technical  informa4on  contained  in  this  news  release  is  based  upon  informa4on  prepared  by  Messrs.  Hennessey,  Jacobs,  Villeneuve,  Damjanović  and  Foo  of  Micon  Interna4onal  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   TSX   DNA   STOCK  PRICE   $3.00   Shares  outstanding   89.3  million   $2.50   Fully  diluted   94.8  million   DNA   $2.00   Market  cap.   $80.4  million   $0.90 (July  26,  2012)   $1.50   July 26, 2012 $1.00   Average  volume   172,207   (30  day)   $0.50   52  Week  Range   $2.42  -­‐  $0.62   $0.00   Insider  ownership   6%   (approximate)   $26.00   $1,900   Cash  balance   Gold   (as  at  Mar  31,  2012)   $37.4  million   $24.00   $1,800   $22.00   $1,700   $20.00   $1,600     $18.00   $1,500   Analyst  coverage   Jamie  Spra]   $16.00   $1,400       $14.00   $1,300   Craig  Stanley   BMO  Junior  Gold  Index  ETF   $12.00   $1,200   Jan   Jan   Jan   Feb   Feb   Jun   Mar   Mar   Apr   Apr   May   May  All  dollars  quoted  in  $  CAD   3
  4. 4. Our  Board:  A  Track  Record  of  Discovery  and  Development   PATRICK  F.  N.  ANDERSON   KEITH  D.  MCKAY   CHAIRMAN  AND  CHIEF  EXECUTIVE  OFFICER   CHIEF  FINANCIAL  OFFICER   Former  CEO  of  Aurelian  Resources     Former  CFO  of  Aurelian  Resources     Also  Director  of  Colossus  Minerals  and  ConYnental  Gold     COLIN  K.  BENNER   THOMAS  J.  OBRADOVICH   CHAIRMAN  OF  DELTA  MINERALS  AND  AURICO  GOLD   CHAIRMAN  OF  LAGO  DOURADO  MINERALS   Also  Director  of  Mercator  Minerals,  Lundin  Mining,   Former  CEO  of  Young-­‐Davidson  Mines   Troon  Ventures,  and  Corsa  Capital   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  Rio  Novo  Gold,  Bowmore   ExploraYon  and  Astur  Gold   RONALD  P.  GAGEL   ARI  B.  SUSSMAN   Former  SVP  and  CFO  of  FNX  Mining   EXECUTIVE  CHAIRMAN  OF  COLOSSUS  MINERALS   CEO  OF  CONTINENTAL  GOLD  LIMITED   Also  Director  of  Adriana  Resources   and  Stonegate  Agricom   4
  5. 5. Contents  Dalradian  Summary  Northern  Ireland  Project  IntroducYon   Norway  Curraghinalt  Deposit  -­‐  Resource  Summary   Northern   Ireland  Resource  Summary  ExploraYon  –  Northern  Ireland  ExploraYon  –  Norway     5
  6. 6.  The  European  ExploraYon  Company                                        NORTHERN  IRELAND                                    NORWAY   §  Posi4ve  PEA  including:   §  Posi4oned  for  mineral  discovery   −  ATer-­‐tax  IRR:  41.9%     −  Under-­‐explored  in  the  20th  century   −  Cash  Opera4ng  Costs:  US  $532/oz     −  Four  northern  greenstone  belts  with   known  mineraliza4on   −  Produc4on:  Approx.  145,000  oz/year  over  15   year  mine  life   −  Historic  Kongsberg  silver  district  in  south       §  High-­‐grade  2.7M  ounce  gold  resource   (all  categories)1   §  Regional  sampling  program  underway   −  Stream  sediment  sampling  program  in   −  Measured:  0.02  MT  grading  21.51  g/t  Au  for   progress  in  Kongsberg  silver  district   10,000  contained  ounces   −  Till  and  stream  sediment  sampling   −  Indicated:    1.11  MT  grading  12.84  g/t  Au  for   commencing  over  northern  greenstone   460,000  contained  ounces   belts   −  Inferred:    5.45  MT  grading  12.74  g/t  Au  for   2.23  million  contained  ounces     §  Pro-­‐mining  Investment   §  18,000m  drilling  program  started  July  9,  2012   −  Government  investment  in     geological  surveys  1  Refer  to  press  release  en4tled  “Dalradian  Announces  Resource  Increase  at  Curraghinalt”  at  www.dalradian.com   6  
  7. 7. Northern  Ireland:    §  Our  flagship  asset:  Curraghinalt   U.K.  &  BRITISH  ISLES   NORTHERN   mesothermal  high-­‐grade  gold  deposit   IRELAND  §  Excellent  regional  infrastructure   Curraghinalt   Deposit  §  Over  84,000  hectares  under  explora4on   Lonmin   license  §  Poten4al  exists  for  further  precious   and  base  metals  deposits   Irish  Salt   Mining   Gor4n   Rousky   Cavanacaw   Galantas  Gold   Omagh   BELFAST   Conroy   Diamonds   &  Gold   In  produc4on   Exploring  for   Pla4num  and   Extensive   since  late  2007   gold  along  a     palladium   underground   50  km  trend   explora4on   mining   7  
  8. 8. Brownfields  ExploraYon:  Curraghinalt  Trend   GLACIATED  TERRAIN  WITH  MINIMAL  OUTCROP   Hole  12-­‐CT-­‐154   Golan  Burn   .65m  @  15.04  g/t  Au   Outcropping  veins  including   60cm  @  61.43  g/t  Au   Hole  11-­‐CT-­‐99   3.2m  @  5.34  g/t  Au   Hole  12-­‐CT-­‐153   .45m  @  10.22  g/t  Au   .33m  @  14.15  g/t  Au   Scotch  Town   Peak  of  10.52  g/t  Au   In  mineralized  boulders   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   Alworries                                          (5.45  MT  @  12.74  g/t)   1.88  metres  @  20.8  g/t  Au  in   vein  in  quarry   •  intercept in hole 11-CT-99 projected up dip to 170m mSL 8
  9. 9. Curraghinalt  NI  43-­‐101  Technical  Report  Measured0.02 MT @ 21.51 g/t Au for 0.01 4.1m:  42.7  g/t  @  depth  42.9m   N   1.6m:  56.3  g/t  @  depth  416.2m  million contained ounces 2.0m:  482.7  g/t  @  depth  77.0m  Indicated 1.3m:  65.7  g/t  @  depth  159.8m  1.11 MT @ 12.84 g/t Au for 0.46 2.0m:  24.0  g/t  @  depth  41.5m  million contained ounces 3.3m:  16.9  g/t  @  depth  615.7m   Road  Inferred Sheep  Dip  5.45 MT @ 12.74 g/t Au for 2.23 ABB-­‐D   Mullan  million contained ounces ABB-­‐G   T17   Kiln  Shear   No1  §  Prepared by Micon International 106-­‐16   Limited V75   Bend  §  Dated January 10, 2012 Crow  §  Includes drilling up to August 2011 – more than 13,000 Crows  Foot  Shear   metres drilled on the deposit since resource cut-off 0   200   400   KILOMETRES  9 9
  10. 10. Curraghinalt:  A  Growing  Resource   1986-­‐2011  CURRAGHINALT  RESOURCE  ESTIMATE     •  1986-­‐1987  resources  es4mates  are   historical  non  43-­‐101  compliant  resources   3   60,000   •  2003  to  2011  resource  es4mates  are   2.5   50,000   reported  43-­‐101  compliant   2   40,000   •  Images  presented  for  illustra4ve  purposes   Million  of  Ounces    Metres  Drilled   only   1.5   30,000     1   20,000   0.5   10,000   0   0   1989   01-­‐May-­‐1997   01-­‐Oct-­‐1997   30-­‐Jan-­‐2003   27-­‐Jan-­‐2005   29-­‐Nov-­‐2007   30-­‐Nov-­‐2009   30-­‐Nov-­‐2011   1986   1996   Resource  EsYmate   Measured   Indicated   Inferred   Metres  Drilled   10
  11. 11. Preliminary  Economic  Assessment   PEA  Key  Data   3  Year  Trailing  Average  Gold  Price     $1378/ounce   NPV  with  8%  discount  rate   $467  million   IRR  (ATer-­‐tax)   41.9%   Payback  from  Day  1  of  Construc4on   2  years   Average  Annual  Produc4on   145,000  ounces/year   Life  of  Mine   15  years   Ini4al  Capex  ($38M  con4ngency)   $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 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.11All  dollars  quoted  in  $  USD  unless  stated  otherwise   11 11
  12. 12. PEA:    Mining   §  Longhole  Mining  with  Ramp  Access  &  Truck   Haulage:   –  Local  availability  of  experienced  longhole  miners   –  More  dilu4ve  than  cut  and  fill  but  less  expensive   and  easier  to  manage   §  Cost  trade-­‐off  not  material   –  1.8  metres  mined  width  (80%  dilu4on  on   resource)   –  20  metre  sub  level  spacing   –  Less  than  10  working  faces  at  any  one  4me  12 12 12
  13. 13. Comparable  Longhole  OperaYons  Project   ProducYon   Mining  Cost   Comments   Rate  (tpd)   (US$/t  milled)  Curraghinalt   1,700  (planned)   $76.50  (US$/t  mined)   1.8  m  stope  widths  (Dalradian,  N.  Ireland)   (PEA  es4mate)  Westwood   2,200  (planned)   $62.46   15  m  high  stopes,  with  (Iamgold,  Quebec)   mineable  widths  down  to   1.2  m  Bulyanhulu   3,300   $156.00   Narrow,  steeply-­‐dipping  (African  Barrick,   veins  Tanzania)  Daisy  Milano   540   Cash  Costs  of  $660/oz   Stope  widths  down  to  1  m  (Silver  Lake  Resources,  W.  Australia)  Lawlers   2,200   $30.06   Shallow  dipping  veins,  2-­‐6  m  (Barrick,  Australia)   (2003)   thick   13
  14. 14. PEA:  Processing  §  OpYons  Examined:   §  Grinding  –  Whole  Ore  Leach   §  Grinding  –  Gravity  –  Flota4on  of  Gravity  Tails  –   CN  of  Flota4on  Concentrate   §  Grinding  –  Gravity  –  Flota4on  –  Sale  of   Concentrate(s)   §  Grinding  –  Cu  Flota4on  –  Pyrite  Flota4on  –  CN  of   Pyrite  Concentrate  §  Preferred  opYon:   §  Crushing,  grinding,  whole  ore  cyanida4on  and   conven4onal  tailings  disposal.   §  92%  gold  recovery   Silverlake’s Daisy Milano Mine §  Opportunity  for  further  op4miza4on  of  mill   circuit  14 14 14
  15. 15. Permijng   Permijng     §  Working  with  government  to  op4mize   the  permiwng  process   §  Awai4ng  water  discharge  permit  for   underground  drilling  –  near  term   §  Next  step  –  planning  for  underground   explora4on  development  15 15 15
  16. 16. Phase  I  Drilling   CURRAGHINALT  DEPOSIT   §  Commenced  drilling  high  priority  targets  July  9,  2012   §  Increase  confidence  in  current  numbers   §  Pull  in  outlying  holes   §  Greater  than  15,000  metres  drilled  since  last  resource  update     §  Updated  resource  es4mate  targeted  Q1  2013   16
  17. 17. Phase  II  Drilling   CURRAGHINALT  TREND   2012  Geophysics   High Resolution Aeromagnetic Image flown over Curraghinalt Trend – April 2012   2012  Geochem   Historical Geochem with Extended 2012 Soil Survey   Curraghinalt  Trend   Glaciated terrain with minimal outcrop 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 direction in19 mineral strategy for Norway
  20. 20. Another  Mining  Friendly  JurisdicYon   Karasjok  •  The  new  Mineral  Act  legisla4on  passed  in   Kautokeino   Pasvik   January  2010  to  promote  mining  ac4vi4es   Rombak  •  Minister  of  Industry  announces  large   investment  over  4  years  to  iden4fy  mineral   resources   SWEDEN   RUSSIA  •  Dalradian  has  acquired  mineral  rights  over  6   areas  including  four  greenstone  belts  and  an   FINLAND   historic  silver  mining  district   NORWAY   Kongsberg   HELSINKI  •  Proper4es  total  more  than  1,700,000   Bamble   OSLO   hectares   STOCKHOLM   Dalradian  Concession  Areas  •  Country  with  good  infrastructure,  educated   Greenstone  Belts   workforce  and  stable  government     20
  21. 21. Here  be  Monsters…  1.  Kijlä  Gold  Mine   –  Largest  gold-­‐mine  in  Europe   –  Total  Reserves  +  Resources  =  7.4  Moz  Au  2.  SakaYllampi  Discovery     –  Possibly  largest  nickel-­‐copper  deposit   discovery  in  Europe  (reported  samples  of   4%  Ni)   –  Announced  by  AngloAmerican   on  November  3rd,  2011  3.  Pechenga  District   –  In  Russia  ~  25km  from  Norwegian  border       Dalradian  Concession  Areas   –  Probable  reserves  of  150Mt  @  1%  Ni  and   Proven  Reserves  of  30Mt  @  2%  Ni,  1%  Cu,   Greenstone  Belts   0.04%  Co  4.  Bidjovagge  Gold-­‐Copper  Mine   –  Historical  produc4on  of  greater  than   200,000  ounces  of  Au  &  14  M  pounds  of  Cu   21
  22. 22. Greenfields  ExploraYon  Norway   NORWAY  EXPLORATION     Regional  reconnaissance  sampling  to  idenYfy  best   targets  +1M  oz.  Au  equivalent.   §  Boots  are  on  the  ground!   §  3  teams  on  stream  sediment  sampling  in  the   Kongsberg  silver  district  –  approximately  50%   complete   §  Till  sampling  program  beginning  over  the  two   largest  northern  greenstone  belts   §  Extensive  program  of  consolida4ng  and   reinterpre4ng  historic  and  new  geophysical   data  to  iden4fy  priority  explora4on  targets   §  Crews  will  complete  programs  over  southern   concessions  in  the  fall   22
  23. 23. The European Explorer Patrick F. N. Anderson Chairman & 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
  24. 24. Curraghinalt  NI  43-­‐101  Technical  Report  §  Prepared  by  Micon  Interna4onal  Limited  §  Dated  January  10,  2012  §  Updated  from  May  10,  2010  and  reflects  revised  gold  price   Curraghinalt Mesothermal Gold Deposit Measured 0.02 MT @ 21.51 g/t Au for 0.01 million contained ounces Indicated 1.11 MT @ 12.84 g/t Au for 0.46 million contained ounces Inferred 5.45 MT @ 12.74 g/t Au for 2.23 million contained ounces Notes: §  Combined royalties of 6% §  Assumes US$900/oz and an economic cut-off grade of 5 g/t Au over a minimum thickness of 0.10 metres, diluted to 1 metre at 0 grade §  Using a cut-off grade of 5 g/t §  All veins less than 10 cm were excluded §  Width or vein thickness is measured at 90 degrees to the vertical §  "Vein thickness" refers to a zone of grade and may not be 100 per cent vein material §  Please see "A Mineral Estimate for The Curraghinalt Gold Deposit, Tyrone Project, County Tyrone and County Londonderry, Northern Ireland” dated January 10, 2012 and available at www.dalradian.com 24
  25. 25. Tyrone  Project:  Curraghinalt  &  Glenlark  Trend   DG4  Curraghinalt  Deposit   DG3 DG1 DG2 25