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Dalradian Corporate Presentation May 2018
- 1. Patrick F. N.Anderson We’ve found something precious. Opportunity. President and CEO Corporate Presentation May 2018
- 2. 2 FORWARD-LOOKING INFORMATION ANDQUALIFIED PERSON 2 This presentation contains “forward-looking information” which may include, but is not limited to, statements with respect to the delivery of an updated feasibility study and an updated technical report, future financial or operating performance of the Company and its subsidiaries and its mineral project, the future price of metals, test work and confirming results from work performed to date, the estimation of mineral resources and mineral reserves, the realization of mineral resource and mineral reserve 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, limitations of insurance coverage, the timing and possible outcome of pending regulatory matters and the realization of the expected production, economics and mine life of the Curraghinalt gold deposit. 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 that management believes are reasonable, such as continued political stability in Northern Ireland, that permits required for Dalradian’s operations will be obtained in a timely basis in order to permit Dalradian to proceed on schedule with its planned exploration and mine development, construction and production programs, that a permitting application for mine construction will be approved, that skilled personnel and contractors will be available as Dalradian’s operations commence and continue to grow towards production and mining operations, that the price of gold will be at levels that render the Dalradian’s mineral project economic, and that the Company will be able to continue raising the necessary capital to finance its operations and realize on mineral resource and mineral reserve 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 Dalradian 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; legal challenges to permits or permitting applications; the actual results of current and future exploration activities; the actual results of reclamation activities; conclusions of economic evaluations; meeting various expected cost estimates; 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 for the year ended December 31, 2017 dated March 15, 2018. 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. Eric Tremblay, P.Eng., Chief Operating Officer, and Greg Hope, M.Sc., MAIG, Exploration and Geology Manager with Dalradian Resources Inc., are the Qualified Persons who have reviewed and approved the scientific and technical information in this presentation.
- 3. 3 â–ŞLarge, high-grade veinsystem open in all directions â–ŞClose to surface and easily accessible â–Ş120,000 ha land package with many gold showings Geology â–ŞPermit a mine â–ŞImprove economics from positive FS base-case Strategy â–Ş46% increase in M&I and 32% increase in Inferred â–ŞIdentified 5 new veins and increased strike length by 1 km Resource Update â–ŞAll political parties focused on economy and job creation â–ŞTransparent permitting process Jurisdiction â–ŞPositive geotechnical and ore-sorting results being fed into FS update â–ŞRaised over CAD$320 M since 2010, including $78 million investment from Orion and Osisko FS Improvement Financial Strength HIGH-GRADE GOLD IN NORTHERN IRELAND
- 4. 4 STOCK PRICE PERFORMANCE $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 $2.00 $2.25 $2.50 $2.75 $3.00 $3.25 MichaelCurran$2.20 Tyron Breytenbach$2.50 $2.00 Andrew Mikitchook $3.00 Tom Gallo $2.50 Stephen Walker Ryan Walker$2.05 Analyst targets range from $1.70-$3.00 $1.07 May 10, 2018 SHARE CAPITALIZATION AND CASH POSITION Shares outstanding of 355 million and fully diluted of 368 million as of May 2018 Cash position of $126 million as of March 2018 All dollars quoted in $ CAD $1.70 Craig Stanley 160p Jonathan Guy $2.70 Gary Sidhu $2.25
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- 6. 6 MINERAL PROJECTS INIRELAND AND THE UK Gortin Omagh Curraghinalt BELFAST Galantas Gold Conroy Diamonds & Gold Walkabout Resources Irish Salt Mining Curraghinalt Gold Deposit Gold Base Metals Other Exploration In Production Permitting/Permitted, but not producing Past Producer Stage Commodity United Kingdom Republic of Ireland Northern Ireland
- 7. 7 OUR PROGRESS ATCURRAGHINALT â–Ş UG exploration permits granted; ESIA and planning application submitted â–Ş 2 PEAs and a positive base-case feasibility study released over 5 years â–Ş 6 resource updates resulting in a 12x increase in resources â–Ş Completed 2,000 metres of underground development with 3 test stopes 27 Years of Work 8 Years of Work Metres of Drilling Inferred Resource (Moz) Measured and Indicated Resource (Moz) 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 2007 Pre- DNA 2010 Year 1 2011 Year 2 2014 Year 4 2016 Year 6 2018 Year 8
- 8. 8 2018 RESOURCE Released anupdated Mineral Resource Estimate with a 42% increase in M&I ounces and a 29% increase in gold grade1 Measured: 0.04 Mt grading 26.04 g/t Au for 33,000 contained ounces Indicated: 6.31 Mt grading 14.95 g/t Au for 3.0 million contained ounces Inferred: 7.72 Mt grading 12.24 g/t Au for 3.1 million contained ounces 1 Refer to the press release dated May 10, 2018 for details on the updated Mineral Resource
- 9. 9 RESOURCE EXPANSION Vein andVein Intersections Curraghinalt Deposit Attagh Burn Alwories Proposed mill site Curraghinalt Deposit 12km Curraghinalt Trend Rylagh Bounds of Current Resource
- 10. 10 RESOURCE WIREFRAME –COMPARISON Cpy Cpy2016 - 16 veins over 1.3km strike 2018 - 21 veins (2 not in resource) over 2.3km strike (open in all directions)
- 11. 11 Curraghinalt Deposit Attagh Burn 2.47m @18.99 g/t Au 3 Golan Burn 0.6m @ 61.43 g/t Au Gold Anomalies 1 kilometres 0 2 Scotch Town Peak of 10.52 g/t Au In mineralized boulders 400 m Step-out 3.2m @ 5.34 g/t Au 2 1 1a 12-CT-173 drilled at 150/-60; 1b and 1c 12-CT-162 drilled at 180/-55; 1b from 186.00m - 188.22m, 1c from 229.08m - 230.55m; true width undetermined 2 11-CT-99 drilled at 200/-60, from 471.14-474.34 m 3 12-CT-167 drilled from 201.93-204.40 m Vein and Vein Intersections Glaciated Terrain with Minimal Outcrop Alwories Discovery Holes 1 4.72m @ 14.82 g/t Au 1a 2.22m @ 14.10 g/t Au 1b 1.47m @ 23.60 g/t Au 1c 12KM GOLD TREND IS MOSTLY UNEXPLORED Proposed mill site Curraghinalt Deposit 12km Curraghinalt Trend Rylagh
- 12. 12 HIGH GRADE REGIONALDISCOVERIES Fallagh Rylagh 1 kilometres 0 2 1 kilometres 0 2 kilometres 0 5 SAMPLES - New Discovery 50cm @ 139.5 g/t Au (F11601) 10-15cm @ 1.37 g/t Au (F11627) 50cm @ 168 g/t Au (F36011) 50cm @ 42.4 g/t Au (F36011) SAMPLES 30.30 g/t Au (B0641) 29.20 g/t Au (B0633) 17.25 g/t Au (B0625) 11.65 g/t Au (B0627) Curraghinalt Deposit Curraghinalt Deposit 12km Curraghinalt Trend Rylagh
- 13. 13 â–Ş 2018 drillingplanned for several regional targets â–Ş Soil sampling, panning and stream sediment sampling to continue on all licences â–Ş Over 120,000 hectares under licence or application REGIONAL EXPLORATION
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- 15. 15 SITE PLAN Curraghinalt hasbeen designed to fit in with the natural topography with a low profile design, using trees, berms and building wall sound panels to buffer noise.
- 16. 16 FS ENHANCEMENTS â–Ş Infilldrilling to enhance grade â–Ş Conversion of Inferred resource into M&I and Reserves â–Ş Focused geotechnical program in zones currently classified as poor ground â–Ş Production rate â–Ş Ore sorting Anticipated results with enhancements are higher annual production and lower costs Updated FS scheduled to be released in Q3 2018 The updated Mineral Resource Estimate*, along with the work listed below, will support an updated FS: *Refer to page 10 for details
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- 18. 18 FOCUS ON JOBSAND ECONOMY â–Ş Top priority of all NI political parties is jobs and investment and historically permitting decisions have been influenced by economic contribution â–Ş Successfully permitted underground exploration at Curraghinalt â–Ş Numerous government officials have visited our project, including over 70 site visits by regulators during UG program â–Ş More than 40 meetings with regulators prior to submitting planning application Stormont, NI Parliament Building
- 19. PERMITTING PROCESS Planning Decision Project Description Completed ESIACompletedPlanning Application Submitted Planning Application consists of: • Project Description • Environmental Social Impact Assessment (ESIA) The review process includes: • consultation with other regulators and the public • a thorough review of the application Public Local Inquiry COMPLETED IN PROGRESS Planning Application Submitted Planning NI Review Public Local Inquiry anticipated due to scale of the project 10 - 12 months 12 monthsNovember 2017
- 20. COMMUNITY ENGAGEMENT Over 1,000tunnel tours and site visits 27 informative advertorials published in local newspapers 1400+ submissions of interest for jobs 34% from the local area 400+ letters of support submitted
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- 22. DNA HIGHLIGHTS â–Ş Business-friendlyjurisdiction with transparent permitting â–Ş Large, high-grade vein system â–Ş Positive Feasibility Study, with multiple opportunities for improvement â–Ş Project has advanced to permitting stage â–Ş Active technical program and news flow in 2018