Dalradian corporate presentation july 2013
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Transcript of Dalradian corporate presentation july 2013
Patrick F. N. Anderson Chief Execu8ve Officer
High-‐Grade │ Low-‐Risk │ Explora8on │ Development │ Europe │ July 2013
Sample from the T17 vein – 188 g/t of gold, 103 g/t of silver and 5.07% of copper
Forward-‐Looking Statement & Qualified Persons
2
This presenta8on contains “forward looking informa8on” which may include, but is not limited to, statements with respect to [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]. O`en, 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 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 explora8on and development 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 Company’s mineral projects economic, 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 Company’s technical report en8tled “A Preliminary Economic Assessment of the Curraghinalt Gold Deposit, Tyrone Project, Northern Ireland”, dated September 6, 2012 (the “PEA”) 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; the 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 exceed 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 ahempted 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.
For addi8onal informa8on on the Curraghinalt project, please see the PEA, prepared by B. Terrence Hennessey, P.Geo., Barnard Foo, P. Eng., Bogdan Damjanović, P. Eng., André Villeneuve, P. Eng., and Christopher Jacobs, CEng MIMMM, of Micon Interna8onal Limited, which is available on SEDAR at www.sedar.com and on the Company’s website at www.dalradian.com.
Michele L. Cote, MSc., P. Geo., Vice President Explora8on of the Company, is the Qualified Person (for the purposes of Na8onal Instrument 43-‐101) who reviewed and approved the technical informa8on contained in this presenta8on.
Capital Structure
STOCK PRICE
All dollars quoted in $ CAD
TSX, OTCQX: DNA, DRLDF
Shares outstanding: Fully diluted : (May 7, 2013)
89.5 million 97.0 million
Market cap: (June 26, 2013) $51.0 million
Average volume: (30 day) 51,283
52 Week Range: $1.90 -‐ $0.58 Insider ownership: (approximate) 6%
Cash balance: (as at March 31, 2013) $16.5 million
Analyst coverage:
Jamie Sprah Steve Parsons
Craig Stanley Laurie Cur8s
John Hayes Bart Jaworski
3
$1,400.00
$1,500.00
$1,600.00
$1,700.00
$1,800.00
$1,900.00
$2,000.00
$0.00
$0.50
$1.00
$1.50
$2.00
$0.57 June 26, 2013
DNA
Gold Price
The Board: A Track Record of Discovery and Development
4
PATRICK F. N. ANDERSON CHIEF EXECUTIVE OFFICER Former CEO of Aurelian Resources
COLIN K. BENNER CHAIRMAN OF DELTA MINERALS AND AURICO GOLD Also Director of Mercator Minerals, Lundin Mining,
JONATHAN A. RUBENSTEIN Director of Eldorado Gold CorporaXon Chairman & Director of MAG Silver Corp.
Former Director of Aurelian Resources
RONALD P. GAGEL Former SVP and CFO of FNX Mining
THOMAS J. OBRADOVICH CHAIRMAN Chairman of Lago Dourado Minerals
Former CEO of Young-‐Davidson Mines
Former Director of Aurelian Resources
SEAN E. O. ROOSEN CEO OF OSISKO MINING CORPORATION Also Director of Astur Gold
CEO OF CONTINENTAL GOLD LIMITED ARI B. SUSSMAN
GRENVILLE THOMAS CHIEF FINANCIAL OFFICER Chairman of Strongbow ExploraXon Inc.
Former Chairman, President & Director of Aber Resources (Harry Winston Diamond Corp.)
NORWAY
High-‐Grade Targets in Low Risk JurisdicXons
5
§ Gold resource covers a frac8on of known mineraliza8on
§ 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
§ Posi8ve PEA shows us a high margin and low capex producer
§ 1.3 M hectares of explora8on permits § En8re greenstone belts § Over 15 precious metals targets iden8fied
in 2012 season
NORTHERN IRELAND
Northern Ireland
Norway
1 Refer to press release dated Nov. 30, 2011 en8tled “Dalradian Announces Resource Increase at Curraghinalt” at www.dalradian.com
Northern Ireland
§ Our flagship asset: Curraghinalt high-‐grade lode gold deposit
§ Excellent regional infrastructure
§ Over 84,000 hectares under license
§ Recent surge in gold sector
6
Gor8n
Omagh
Curraghinalt
BELFAST
NORTHERN IRELAND
Galantas Gold
Conroy Diamonds & Gold
Lonmin
Irish Salt Mining
Underground Salt Mine
ClonXbret
Croagh Patrick Parys Mountain
Gwynfynydd Galmoy Avoca
Pallas Green Silvermines
South Cro\y
Curraghinalt Gold Deposit
Gold Base Metals Salt Mine
Allihies Copper Mines
Galantas Gold Permihed in 2007
Scotgold Permihed in 2012
Vedanta Resources In produc8on
Boliden In produc8on
IMC ExploraXon 354 g/t gold over 1.5m
Lundin In produc8on
Conroy +1M ounce resource
Lisheen
Cononish
Tara
Cavanacaw
Xstrata Feasibility
Gold Mines of Wales U/G grab sample -‐ 263 g/t gold
Clogau
Since IncepXon…
2009 • Project Acquisi8on -‐ December • 600 k ounce gold resource1
2010 • Increased to 1.5 M ounce gold resource1 • IPO -‐ August
2011 • 7 rigs onsite • Increased to 2.7 M ounce gold resource1
2012 • Robust PEA announced • New discovery -‐ Alwories
2013 • Underground explora8on development permit submihed and expected by Q4
1 Refer to appendix or press release dated Nov. 30, 2011 en8tled “Dalradian Announces Resource Increase at Curraghinalt” at www.dalradian.com
And There’s More…
8
0 200 400
METRES
A Growing Resource: 600,000 Ounces to 2.7 million Ounces
9
2007 Resource
2010 Resource
2011 Resource
2012 Interpreta8ve vein extents
Drilling post 2011 Resource
Preliminary Economic Assessment
10 10
KEY PEA DATA* 3 YEAR TRAILING
AVERAGE GOLD PRICE: $1378/ounce
5 YEAR TRAILING AVERAGE GOLD PRICE:
$1,166/ounce
NPV with 8% discount rate (A`er-‐tax) $467 million $331 million
IRR (A`er-‐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%
Payback 2 years
All dollars quoted in $ USD unless stated otherwise
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
DG3
GorXn
Permihng is Possible
11
Curraghinalt
Alwories Quarry
kilometres 0 1 2
Curraghinalt
Clear Cut Logging at Gor8n Glen Forest Park
125 Metres
Cavanacaw Open Pit Approx 30 km SW
Greencastle Quarry
Curraghinalt Deposit
12 12
N
Road
Sheep Dip Mullan T17
No1
106-‐16
Bend
Crow
ABB-‐D
ABB-‐G
T17 4.1 m: 42.7 g/t @ depth 42.9 m 2.5 m: 20.5g/t @ depth 226.9 m
No 1 2.0 m: 48.7 g/t @ depth 77.0 m 1.6 m: 56.3 g/t @ depth 416.2 m
106-‐16 2.0 m: 24.0 g/t @ depth 41.5 m 3.3 m: 16.9 g/t @ depth 615.7 m
Crows Foot Shear
Kiln Shear
Veins in Current Resource
Newly intersected Veins
Interpreted Veins
Along Trend Anomalous Veins
2012 Drill Hole
Adit
Curraghinalt Adit
13
Underground ExploraXon Development
14
Underground Development 143 m STRIKE AVERAGE 1.63 m AT 26.23 g/t Au
Reserve Block Based on Surface Drilling 143 m STRIKE AVERAGE 2.03 m AT 26.12 g/t Au
Underground Development 53 m STRIKE AVERAGE 1.52 m AT 8.9 g/t Au
Surface Drilling Indicated AN AVERAGE GRADE 1.5 m AT 8.6 g/t Au
Adit (170m Level) Detail
Adit (170m Level)
8.95 m AT 4.55 g/t Au
Underground ExploraXon Development
§ Extend the exis8ng adit by approximately 260 m to intersect all known veins;
§ Dri` along several of the known veins & demonstrate vein con8nuity;
§ Install a ramp to access 150 m level, approximately 20 m below exis8ng workings;
§ Removal of large bulk sample for metallurgical test work.
§ Dalradian is reques8ng planning permission to complete approximately 2,000 m of underground explora8on development
T17
No. 1
106-‐16
Bend
Crow
Road
Sheep Dip
Mullan
Proposed Access Ramp to Sub-‐Level
Proposed Tunnel Extensions at Sub-‐Level
Proposed Tunnel Extensions at 170 M Level
ExisXng ExploraXon Tunnel
16
Conceptual Sublevel Development
2,000 m Planned with the Goal to:
§ Demonstrate con8nuity of thickness and grade of mineralized veins. § Convert addi8onal resources to Measured and Indicated.
§ Test mining and backfill methods. § Inves8gate geotechnical and hydrogeological condi8ons. § Produce a bulk sample for metallurgical test work. § Test the permi{ng process.
Further Upside
§ 0.76 m of 33.6 g/t gold becomes 7.21 m of 7.58 g/t gold
§ Assembled 80 km of historical core in a modern facility
§ Most was found unsampled
§ Iden8fied a mineralized oblique vein set
17
17
§ Poten8al to increase ounces & mining widths
§ Posi8ve poten8al implica8ons for dilu8on
600 m hole yielded over 1000 veinlets
HISTOGRAM OF GOLD ASSAYS – BEFORE AND AFTER HISTORICAL CORE EVALUATION
Broader Mineralized Zones
18
CROSS-‐SECTION A – A’
Adit
CROSS-‐SECTION A – A’
Not a Trend but a District
19
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)
Alwories 1.88 m @ 20.8 g/t Au in vein in quarry
GLACIATED TERRAIN WITH MINIMAL OUTCROP
8 km
Golan Burn Outcropping veins including 60 cm @ 61.43 g/t Au
1700m
Alwories Discovery Holes 4.72 m @ 14.82 g/t Au 2.22 m @ 14.10 g/t Au 1.47 m @ 23.6 2g/t Au
Curraghinalt Deposit
Curraghinalt Trend
400 m Step-‐out 3.2 m @ 5.34 g/t Au
Apagh Burn 2.47 m @ 18.99 g/t Au
Scotch Town Peak of 10.52 g/t Au In mineralized boulders
“Fallagh” New Au Prospect 30.30 g/t Au, 29.20 g/t Au & 17.25 g/t Au in Float
Curraghinalt Trend Veins in Current Resource Interpreted Veins Historical Findings
Curraghinalt: A Growing Resource
20
2.47 m @ 5.19 g/t
0.10 m @ 21.28 g/t
0.44 m @ 11.68 g/t
0.60 m @ 6.02 g/t 0.43m @ 14.57 g/t
0.65 m @ 15.04 g/t
0.38 m @ 3.73 g/t
2.22 m @ 14.1 g/t
4.72 m @ 14.82 g/t
1.47 m @ 23.6 g/t
Curraghinalt
Alwories Attagh Burn
3.6 km
2007 Resource
2010 Resource
2011 Resource
2012 Interpreted vein extents
Drilling post 2011 Resource
Golan Burn to Curraghinalt
21
6.5 km
2007 Resource
2010 Resource
2011 Resource
2012 Interpreted vein extents
Drilling post 2011 Resource
Curraghinalt
Part of the Community
22
PEA: Conceptual Mine Layout
23
Main Decline
Ore and Waste Passes
Ramp ConnecXng Sublevels
ExisXng Adit and Dri\s
VenXlaXon Raise
Cross Cuts
Not to Scale
Norway: “Let the Treasure Hunt Begin”
Industry Minister, Trond Giske at Press conference announcing new direc8on in mineral strategy for Norway (Oct. 2010)
24
Oslo
Kongsberg
SOUTHERN NORWAY
NORWAY
FINLAND SWEDEN
RUSSIA
Land PosiXon
Northern Norway § Four concessions over three greenstone belts
and a basement window
Southern Norway § Kongsberg concession hos8ng an historical silver mining district
Rombak
NORTHERN NORWAY
Greenstone Belts
Volcanic Belts & Metasediments
Kautokeino Ki{lä Saka{lampi
Bidjovagge
Pasvik
Karasjok
Pechenga NORWAY
FINLAND SWEDEN
RUSSIA
25
2012 ExploraXon Norway
§ 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
26
KAUTOKEINO
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
– 109 g/t of silver with 16.20% zinc
Sampling Program
Historical Workings in the Kongsberg
These poten8al grades are conceptual in nature. There has been insufficient explora8on to define a mineral resource and it is uncertain if further explora8on will result in the target being delineated as a mineral resource.
Where We’re Headed
27
§ Deposit re-‐evalua8on Ongoing § Drill results finalized Q3 2013 § Historic sampling program comple8on Q3 2013 § Historic sampling interpreta8on & results Q4 2013 § Underground permit Q4 2013 § Underground work commences Q1 2014 § We are posi8oned § Baseline studies underway
NORTHERN IRELAND
NORWAY
The European Explorer
Patrick F. N. Anderson Chief Executive Officer
Investor Relations
Shae-Lynn Mathers Director, Investor Relations
[email protected] 416.583.5622
Trading Symbol:
DNA on TSX DRLDF on OTCQX
Corporate Office:
Dalradian Resources Inc. 155 Wellington Street West
Suite 2920 Toronto, Ontario
Canada M5V 3H1
www.dalradian.com
43-‐101 Resource
29
§ 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
2010 RESOURCE
Northern Ireland
Norway
1 Refer to press release dated Nov. 30, 2011 en8tled “Dalradian Announces Resource Increase at Curraghinalt” at www.dalradian.com
2011 RESOURCE § 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
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