DNA AGM Investor Presentation June 20, 2011


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DNA AGM Investor Presentation June 20, 2011

  1. 1. A Golden Opportunity In Northern Ireland Curraghinalt Deposit Investor Presentation June 2011 Patrick F. N. Anderson Chairman and Chief Executive Officer
  2. 2. Forward-Looking Information and Qualified PersonCertain statements in this presentation, other than statements of historical facts relating to the company, constitute “forward-looking information” within the meaning of applicable securitieslaws. Such forward-looking information may include, but is not limited to, statements with respect to the future financial or operating performance of the company, its subsidiary and itsmineral project, 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 ofproduction, 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, limitations of insurance coverage and the timing and possible outcome ofpending litigation and regulatory matters. Often, but not always, forward-looking statements can be identified by the use of words 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 orresults “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 continuedpolitical stability in Northern Ireland, 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 itsplanned drilling programs, that skilled personnel and contractors will be available as the company’s operations continue to grow, that the price of gold will remain at levels that render theproject economic, and that the company will be able to continue raising the necessary capital to finance its operations and realize on mineral resource estimates and current mine plans.Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company and/or itssubsidiary 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 exploration activities; conclusions of economic evaluations; changes in projectparameters as plans continue to be refined; future prices of metals, including gold; possible variations of ore grade or recovery rates; failure to convert estimated mineral resources intomineral reserves; failure of plant, equipment or processes to operate as anticipated; actual results of reclamation activities; accidents, labour disputes; political instability and risks arisingfrom operating in Northern Ireland; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; uncertainties relating to theavailability of future financing; inflation; fluctuations in exchange rates; uninsured risks and other risks of the mining industry.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 thedate hereof 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 requiredby 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 thoseanticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.The technical data in this presentation was taken from the technical report entitled “A Mineral Resource Estimate for the Curraghinalt Gold Deposit and a Review of a Proposed ExplorationProgram for the Tyrone Project, County Tyrone and County Londonderry, Northern Ireland” dated May 10, 2010, prepared by B. Terrence Hennessey, P.Geo., and Dibya KantiMukhopadhyay, M.Sc., MAusIMM, of Micon International Limited (the “Technical Report”).Eur Geol Garth Earls, Managing Director, Dalradian Gold Limited, is the Qualified Person who supervised the preparation of the technical data in this presentation.2
  3. 3. Why Invest? High-grade 1.5MM ounce gold resource (all categories) – Inferred: 1.16 million – Indicated: 400,000 4 drills turning and 2 more on the way – Focus on resource expansion and confirmation – Resource update planned for late 2011 84,000 ha property – Target generation started in Q1 – Exploration drilling to commence mid-year Low political risk – Northern Ireland open for business and resource friendly Experienced management and board – Track record of discovery and development Well funded – Approximately 30 million in cash – Management owns > 8%3
  4. 4. Capital Structure  Cash of approximately $30 million  TSX: DNA and DNA.WT  Shares outstanding – 69.8 million Fully diluted – 90 million Market cap - $106.1 million Average volume (3m) – 238,729  Analyst coverage – GMP: Andrew Mikitchook – Clarus: Laurie Curtis  Management and directors hold approximately 8% As at June 17, 20114
  5. 5. The Board: A Track Record of Discovery and DevelopmentColin K. Benner Patrick F. N. AndersonChairman of Capstone Mining Corp., Chairman and Chief Executive OfficerCreston Moly Corp., and Corsa Capital Ltd. Former CEO of Aurelian Resources Inc. Also Director of Colossus Minerals Inc.,Joseph F. Conway Malbex Resources Inc. and Continental GoldCEO of Primero Mining Corp. LimitedFormer CEO of IAMGOLD Corporation Keith D. McKayRonald P. Gagel Chief Financial OfficerFormer SVP and CFO of FNX Mining Company Inc. Former CFO of Aurelian Resources Inc.Also Director of Adriana Resources Inc. and And Director of Noront Resources Ltd.Stonegate Agricom Ltd. John McCombeThomas J. Obradovich Chief Operating OfficerFormer CEO of Young-Davidson Mines Ltd. Director of Revett MineralsFormer Director of Aurelian Resources Inc. Former SVP, Operating Strategy of IAMGOLDChairman of Lago Dourado Minerals Ltd. Carson NoelSean E. O. Roosen Executive Vice PresidentCEO of Osisko Mining Corporation Former General Manager, Aurelian Ecuador, S.A.Also Director of Rio Novo Gold Inc. and Garth EarlsBowmore Exploration Ltd. Managing Director, Dalradian Gold Limited Former Director, Geological SurveyAri B. Sussman of Northern IrelandChairman and CEO of Colossus Minerals Inc.CEO of Continental Gold Limited5
  6. 6. Exploring Northern Ireland Devolved government within the United Kingdom Currency: pound sterling Population: approximately 1.8 million The government of Northern Ireland recently invested approximately C$15 million in geological surveys to attract investment6
  7. 7. The Tyrone Project: Overview Lonmin PLC is exploring for Excellent regional platinum and palladium infrastructure Our flagship asset is the Curraghinalt mesothermal high grade gold deposit Over 84,000 hectares under licence Potential exists for further precious and base metals deposits Galantas Gold Corporation has been in production since late 2007 Conroy Diamonds & Gold exploring for gold along a 50 km trend7
  8. 8. Active Resource Industry in County Tyrone There are approximately 150 open cast operations in the region Cavanacaw Gold Mine Sand and gravel pit 100 metresPeat Harvesting Gortin Glen Logging8
  9. 9. Curraghinalt: 3D Schematic of Veins and Adit Work historically focused proximal to discovery outcrop9
  10. 10. Current Drilling Program: Resource Expansion June 8, 2011 – Drilling at Curraghinalt intersects 2.06 metres of 111.6 g/t gold and 1.11 metres grading 26.84 g/t gold April 7, 2011 – Hole 11- CT-85 cut 2.54 metres of 20.61 g/t gold February 28, 2011 – Hole 10-CT-76 cut 2.74 metres of 15.27 g/t gold December 2, 2010 – Hole 10-CT-73 cut 1.83 metres of 37.41 g/t gold October 14, 2010 –Two new parallel veins discovered Please see Appendix for cross-sections.10
  11. 11. Veins open at depth Longer holes intercept as many as nine veins Proximity favourable for shared infrastructure11
  12. 12. Comparing Curraghinalt Drilling to Mesothermal ModelDemonstrates Potential for Expansion Potential exists to discover additional veins proximal to resource and new veins outside the principal zone System open along strike and down dip Additional After Colvine, A.C. et al, 1989. potential to north An empirical model for the and south formation of Archean gold deposits: Economic Geology Monograph (The Geology of Gold Deposits: The Perspective in 1988), p 37-53.12
  13. 13. Open along strike Glaciated terrain with minimal outcrop Drilling is primary exploration tool13
  14. 14. Historic Prospecting Samples On license DG1, 461 samples with grades from 0.1 g/t Au to 172.9 g/t Au On license DG2, 691 samples with grades from 0.1 g/t Au to 201 g/t Au and some float samples with VMS style mineralization including one grading 8.8% Zn, 1.2% Pb, 1.7 g/t Au and 8.5 g/t Ag On license DG3, 350 samples with grades from 0.1 g/t Au to 209.92 g/t Au On license DG4, 261 samples with grades from 0.1 g/t Au to 187 g/t Au14
  15. 15. Dalradian: A Golden Opportunity in Northern Ireland Initial strategy is to explore and develop Curraghinalt mesothermal gold deposit in Northern Ireland Dalradian is also exploring additional targets on its approximately 84,000-hectare Tyrone Project Well funded to execute on strategy15
  16. 16. Appendix16
  17. 17. Common Shares and Warrants Outstanding at March 22, 2011 Potential Proceeds* All Canadian dollars unless otherwise stated Exercise Price Common Shares (millions) Common Shares 69,102,416 Warrants Expiring August 10, 2011 2.25 13,180,500 29.7 Expiring August 10, 2011** 1.50 2,153,250 3.2 Expiring December 18, 2011 0.75 336,000 0.3 Total Warrants 15,669,750 33.2 Options Expiring August 10, 2015 0.25 725,000 0.2 Expiring August 10, 2015 0.75 3,100,000 2.3 Expiring August 19, 2015 1.85 300,000 0.6 Expiring October 18, 2015 2.28 125,000 0.3 Expiring January 14, 2016 1.96 100,000 0.2 Total Options 4,350,000 3.6 Total Fully Diluted 89,122,166 36.8 * Proceeds are only realized if the options and warrants are exercised under the terms and conditions of the options and warrants.** If warrants are unexercised as at August 10, 2011, holders have until February 10, 2012 to purchase 1,696,500 common shares at $1.50.17
  18. 18. Curraghinalt NI 43-101 Technical Report Prepared by Micon International Limited Dated May 10, 2010 Updated from November 2007 and reflects revised gold price Curraghinalt Mesothermal Gold Deposit Indicated 0.95 MT @ 13.24 g/t Au for 0.4 million contained ounces with an average width of 1.35 m Inferred 2.46 MT @ 14.64 g/t Au for 1.16 million contained ounces with an average width of 1.18 m Notes:  Subject to a 2% NSR royalty to Minco Plc and a 4% royalty to the Crown Estate on silver and/or gold production  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 and A Review of a Proposed Exploration Program for the Tyrone Project, County Tyrone and County Londonderry, Northern Ireland" dated May 10, 2010 and available at www.dalradian.com18
  19. 19. Multiple High Grade Gold VeinsName Width Grade DepthSheep Dip Vein 1.1 m 29.3 g/t 149.6 m 1.3 m 31.4 g/t 36.1 mMullen Vein 1.0 m 19.3 g/t 274.0 m 1.3 m 19.6 g/t 49.9 mT-17 HW Vein 4.1 m 42.7 g/t 42.9 m 1.6 m 56.3 g/t 416.2 mT-17 Vein 3.4 m 68.1 g/t 39.6 m 1.5 m 27.0 g/t 107.0 mNo. 1 Vein 2.0 m 48.7 g/t 77.0 m 1.3 m 65.7 g/t 159.8 m106-16 Vein 2.0 m 24.0 g/t 41.5 m 3.3 m 16.9 g/t 615.7 mRoad Cut Vein 1.6 m 14.1 g/t 55.5 m 1.2 m 13.9 g/t 123.1 m19
  20. 20. Cross-section A to A20
  21. 21. Cross-section B to B21
  22. 22. Cross-section C to C22
  23. 23. A Golden Opportunity in Northern Ireland Patrick F. N. Anderson Chairman and Chief Executive Officer Keith McKay Chief Financial Officer Trading Symbol: DNA on TSX Executive Office: Dalradian Resources Inc. 155 Wellington Street West Suite 2920 Toronto, ON M5V 3H1 www.dalradian.com Shae-Lynn Mathers Director, Investor Relations: 416-583-5622 smathers@dalradian.com