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Transcript of Dna inves pre_september_21_2011_final
Curraghinalt Deposit
A Golden Opportunity In Northern Ireland
Investor Presentation September 2011
Patrick F. N. Anderson Chairman and
Chief Executive Officer
Forward-Looking Information and Qualified Person
Certain statements in this presentation, other than statements of historical facts relating to the company, constitute “forward‑looking information” within the meaning of applicable securities laws. 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 its mineral 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 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 and the timing and possible outcome of pending 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 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 such as continued political 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 its planned 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 the project 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 its subsidiary 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 project parameters 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 into mineral reserves; failure of plant, equipment or processes to operate as anticipated; actual results of reclamation activities; accidents, labour disputes; political instability and risks arising from operating in Northern Ireland; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; uncertainties relating to the availability 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 the date 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 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.
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 Exploration Program for the Tyrone Project, County Tyrone and County Londonderry, Northern Ireland” dated May 10, 2010, prepared by B. Terrence Hennessey, P.Geo., and Dibya Kanti Mukhopadhyay, 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
Why Invest?
• High-grade 1.5MM ounce gold resource (all categories) • Inferred: 1.16 million – 14.64 g/t Au • Indicated: 400,000 – 13.24 g/t Au
• 6 drills turning • Focus on resource expansion and confirmation • Resource update planned for Q4 2011
• 84,000 ha property • 19 regional targets identified • Exploration drilling underway
• Low political risk • Northern Ireland open for business and resource friendly
• Experienced management and board • Track record of discovery and development
• Well funded • Approximately $25 million in cash as at August 10, 2011 • Management owns > 8%
3
Capital Structure
• TSX: DNA
• Shares outstanding – 69.8 million - Fully diluted – 76.3 million - Market cap - $134.8 million - Average volume (10 day) – 283,511
• Analyst coverage – GMP: Andrew Mikitchook – Clarus: Laurie Curtis
4
As at September 21, 2011
Board & Management: A Track Record of Discovery and Development
Patrick F. N. Anderson Chairman and Chief Executive OfficerFormer CEO of Aurelian Resources Inc. Also Director of Colossus Minerals Inc., Malbex Resources Inc. and Continental Gold Limited Colin K. BennerChairman of Capstone Mining Corp., Creston Moly Corp., and Corsa Capital Ltd. Joseph F. Conway CEO of Primero Mining Corp. Former CEO of IAMGOLD Corporation Ronald P. GagelFormer SVP and CFO of FNX Mining Company Inc. Also Director of Adriana Resources Inc. and Stonegate Agricom Ltd.
Keith D. McKay Chief Financial Officer Former CFO of Aurelian Resources Inc. And Director of Noront Resources Ltd. Thomas J. Obradovich Former CEO of Young-Davidson Mines Ltd. Former Director of Aurelian Resources Inc. Chairman of Lago Dourado Minerals Ltd. Sean E. O. Roosen CEO of Osisko Mining Corporation Also Director of Rio Novo Gold Inc. and Bowmore Exploration Ltd. Ari B. SussmanChairman and CEO of Colossus Minerals Inc. CEO of Continental Gold Limited
5
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 investment
6
Tellus Project
Northern Ireland: A Resource Rich Country
• Excellent regional infrastructure
• Our flagship asset is the Curraghinalt mesothermal high grade gold deposit
• Over 84,000 hectares under exploration
• Potential exists for further precious and base metals deposits
7
Lonmin PLC is exploring for platinum and palladium
Conroy Diamonds & Gold exploring for gold along a 50 km trend
Galantas Gold Corporation has been in production since late 2007
Active Resource Industry in County Tyrone
8
Cavanacaw Gold Mine Sand and gravel pit
100 metres
• There are approximately 150 open cast operations in the region
Peat Harvesting Gortin Glen Logging
9 9
Curraghinalt: 3D Schematic of Veins and Adit
• Work historically focused proximal to discovery outcrop
Current Drilling Program: Resource Expansion
10
• September 6, 2011 – Drilling at Curraghinalt intersects 8.34 metres of 5.84 g/t gold and 3.2 metres grading 5.34 g/t gold. Additional parallel veins discovered to the South of the deposit.
• 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.
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256500
256500
257000
257000
257500
257500
258000
258000
3860
00
3860
00
3865
00
3865
00
3870
00
3870
00
Tyrone ProjectCurraghinalt Deposit
Figure 2: Drillhole Locationsand Section Lines
Projection: Irish National GridScale: 1:9,000
Drawing: KB
Office: Gortin
Author: Dalradian
Date: 30/08/2011
0 100 200 300
Meters
±
A
F
C'D'
F'
11-CT-99
11-CT-97b
ABB-DABB-G
106-16
V75Bend
Crow
T17
MullanSheep Dip
Road
Crows Foot Shear
Kiln Shear
Kiln Shear
Drillholes
(! Reported drillhole
(! Dalradian Resources drillhole
Previous operator's drillhole
Planned Drillholes
(! Irish Drilling
(! Major Drilling
Veins included in reported 43-101 resource
Veins included in reported 43-101 resource
Shear zone
Adit
No1
A'
C
D
11-CT-95 11-CT-98
B'
B
E'
E
11-CT-90
11-CT-94
11-CT-9611-CT-92
Crows Foot Shear
Veins open at depth
• Longer holes intercept as many as nine veins
• Proximity favourable for shared infrastructure
11
E'E
386,800mN
200mM
SL 0m
MSL
-200mM
SL
386,400mN
386,600mN
386,600mN
386,400mN
386,000mN
386,200mN
386,200mN -400
mM
SL
386,000mN385,800mN
-400mM
SL 2
00m
MSL
0m
MSL
-200
mM
SL
11-C
T-89
Intercepts reported as:True width (m), Au grade (g/t)
100
Drawing: SC
Scale: 1:4000
0 25
Curraghinalt DepositE - E'
(Section 257050E)Date:07/06/2011
metres
50
Projection: Non-Earth (meters)
Author: Dalradian
Office: Gortin Shear zone
Vein (intersected)
Vein (projected)
Legend
Planned drillhole
Reported drillhole
Drillholecomplete/active
Cross Section Looking West
12
Long Section – T17 Vein
13
25
66
00
E
25
66
00
E
25
68
00
E
25
68
00
E
25
70
00
E
25
70
00
E
25
72
00
E
25
72
00
E
25
74
00
E
25
74
00
E
25
76
00
E
25
76
00
E
25
78
00
E
25
78
00
E
25
80
00
E
25
80
00
E
25
82
00
E
25
82
00
E
25
84
00
E
25
84
00
E
-900 -900
-800 -800
-700 -700
-600 -600
-500 -500
-400 -400
-300 -300
-200 -200
-100 -100
0 0
100 100
200 200
300 300
400 400
West East Projection
Curraghinalt Deposit
Section Northing: 386350
T17 Vein
Scale 1:7000 Date: 30/08/11
!"#$%&'()$*+*'$%,-./0%1(2%3'%4*5.$%167/2
8*$9-"':%.*-##0"#$:%-;%*$:"'*<$
8#5;;$.%.*-##0"#$:
=>?@A@%*$B"*/$.%C;.-<5/$.%D$:"'*<$:%
=>?@A@%*$B"*/$.%C;E$**$.%D$:"'*<$:
F*-##0"#$:%-;%/0-:%B*$::%*$#$5:$1<".$.%)G%6*5(:%B$*%($/$*2
F*-##0"#$:%"'/:-.$%*$:"'*<$1<".$.%)G%6*5(:%B$*%($/$*2
4*5(:%B$*%($/$*%4"#.
H%I
I%?%@A
@A%?%@I
JK%@I
11-CT-90
0.65
33.85
11-CT-98
0.97
14.05
11-CT-99
2.70
5.34
Long Section – No. 1 Vein
14
25
62
00
E
25
62
00
E
25
64
00
E
25
64
00
E
25
66
00
E
25
66
00
E
25
68
00
E
25
68
00
E
25
70
00
E
25
70
00
E
25
72
00
E
25
72
00
E
25
74
00
E
25
74
00
E
25
76
00
E
25
76
00
E
25
78
00
E
25
78
00
E
25
80
00
E
25
80
00
E
-800 -800
-700 -700
-600 -600
-500 -500
-400 -400
-300 -300
-200 -200
-100 -100
0 0
100 100
200 200
300 300
400 400
500 500
West East Projection
Curraghinalt Deposit
Section Northing: 386200
No.1 Vein
Scale 1:7000 Date: 30/08/11
!"#$%&'()$*+*'$%,-./0%1(2%3'%4*5.$%167/2
8*$9-"':%.*-##0"#$:%-;%*$:"'*<$
8#5;;$.%.*-##0"#$:
=>?@A@%*$B"*/$.%C;.-<5/$.%D$:"'*<$:%
=>?@A@%*$B"*/$.%C;E$**$.%D$:"'*<$:
F*-##0"#$:%-;%/0-:%B*$::%*$#$5:$1<".$.%)G%6*5(:%B$*%($/$*2
F*-##0"#$:%"'/:-.$%*$:"'*<$1<".$.%)G%6*5(:%B$*%($/$*2
4*5(:%B$*%($/$*%4"#.
H%I
I%?%@A
@A%?%@I
JK%@I
11-CT-94
7.54
5.84
11-CT-95
0.28
21.52
Comparing Curraghinalt Drilling to Mesothermal Model Demonstrates Potential for Expansion
15
• Potential exists to discover additional veins proximal to resource and new veins outside the principal zone
• System open along strike and down dip
• Additional potential to north and south
After Colvine, A.C. et al, 1989. An empirical model for the formation of Archean gold deposits: Economic Geology Monograph (The Geology of Gold Deposits: The Perspective in 1988), p 37-53.
Open along strike
16
• Glaciated terrain with minimal outcrop
• Drilling is primary exploration tool
19 Target Areas – 3 Exploration Trends
17
Curraghinalt Trend
Glenlark Trend
Regional Exploration Plan
18
• April 2011 Regional Exploration Commenced • April – May 2011 4 Seasoned Canadian Prospectors enlisted to traditionally
prospect the property which was previously underexplored. This group had a tremendous track record for new surface discoveries.
• July 2011 Dedicated drill onsite for Regional Exploration • July 2011 Prospecting Identified 19 New Gold and Base Metal Targets:
- 12 targets in Dalradian metasediments - 7 targets in Tyrone Volcanic Group
19
Dalradian: A Golden Opportunity in Northern Ireland
• Initial strategy is to explore and develop Curraghinalt mesothermal gold deposit in Northern Ireland
• Resource update in Q4 2011
• Dalradian is exploring additional targets on its approximately 84,000-hectare Tyrone Project
• Well funded to execute on strategy
20
Appendix
21
Curraghinalt NI 43-101 Technical Report
• Prepared by Micon International Limited
• Dated May 10, 2010
• Updated from November 2007 and reflects revised gold price
22
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.com
Multiple High Grade Gold Veins – 43-101
23
Name Width Grade Depth Sheep Dip Vein 1.1 m 29.3 g/t 149.6 m
1.3 m 31.4 g/t 36.1 m
Mullen Vein 1.0 m 19.3 g/t 274.0 m 1.3 m 19.6 g/t 49.9 m
T-17 HW Vein 4.1 m 42.7 g/t 42.9 m 1.6 m 56.3 g/t 416.2 m
T-17 Vein 3.4 m 68.1 g/t 39.6 m 1.5 m 27.0 g/t 107.0 m
No. 1 Vein 2.0 m 48.7 g/t 77.0 m 1.3 m 65.7 g/t 159.8 m
106-16 Vein 2.0 m 24.0 g/t 41.5 m
3.3 m 16.9 g/t 615.7 m
Road Cut Vein 1.6 m 14.1 g/t 55.5 m 1.2 m 13.9 g/t 123.1 m
Cross-section A to A'
24
-200mM
SL 0m
MSL
200mM
SL -400m
MSL
386,400mN
386,400mN 386,600mN
386,600mN
386,800mN
386,000mN
386,200mN
386,200mN
386,000mN
-400
mM
SL385,800mN
200
mM
SL -2
00m
MSL
0m
MSL
0.28m @ 21.52 g/t
11-CT-95
Hole in progress
Hole in progress
517.00m E.O.H.
-200mM
SL 0m
MSL
200mM
SL -400m
MSL
386,400mN
386,400mN 386,600mN
386,600mN
386,800mN
386,000mN
386,200mN
386,200mN
386,000mN
-400
mM
SL385,800mN
200
mM
SL -2
00m
MSL
0m
MSL
0.28m @ 21.52 g/t
11-CT-95
Hole in progress
Hole in progress
517.00m E.O.H.
Intercepts reported as:True width (m), Au grade (g/t)Drawing: KB
Curraghinalt DepositFigure 3: A - A'
(Section 256685E)Date:30/08/2011
Dalradian Resources
Projection: Non-Earth (meters)
Author: Dalradian
Office: Gortin
Scale: 1:4000
Shear zone
Vein (projected)
Vein (intersected)
Legend
Planned drillhole
Drillholecomplete/activeReported drillhole
Cross-section B to B'
25
-600mM
SL -400m
MSL
-800mM
SL387,000mN
387,000mN
387,200mN386,600mN
386,800mN386,600mN386,400mN
386,800mN 2
00m
MSL
385, 600mN
0mM
SL 200m
MSL
387, 200mN
-200mM
SL
386,200mN
386,400mN386,200mN385,800mN
385,800mN
386,000mN
386,000mN
-200
mM
SL -8
00m
MSL
-600
mM
SL -4
00m
MSL
0m
MSL
385,600mN
B'B
150
metres
300
Intercepts reported as:True width (m), Au grade (g/t)
Author: Dalradian
Office: Gortin
Scale: 1:7000
Date:30/08/2011
Drawing: KB
Curraghinalt DepositFigure 4: B - B'
(Section 257280E)
0 75
Projection: Non-Earth (meters)
Shear zone
Vein (projected)
Vein (intersected)
Legend
Planned drillhole
Drillholecomplete/activeReported drillhole
Cross-section C to C'
26 11
-CT-
97b
-200mM
SL -400m
MSL
-800mM
SL -600m
MSL
386,800mN
386,800mN
387,000mN
387,000mN
387,200mN
386,600mN
386,600mN386,400mN
386,400mN
0mM
SL385,400mN
200
mM
SL 200m
MSL
386,200mN
386,200mN
385,800mN
386,000mN
386,000mN
0m
MSL
-800
mM
SL
385,800mN385,600mN
385,600mN
-600
mM
SL -4
00m
MSL
-200
mM
SL
C C'
11-C
T-94
150
metres
300
Intercepts reported as:True width (m), Au grade (g/t)
Office: Gortin
Projection: Non-Earth (meters)Scale: 1:7000
Drawing: KB
Curraghinalt DepositFigure 5: C - C'
(Section 257470E)Date:30/08/2011
Dalradian Resources
Author: Dalradian
0 75
Shear zone
Vein (projected)
Vein (intersected)
Legend
Planned drillhole
Drillholecomplete/activeReported drillhole
Cross-section D to D'
27
200mM
SL -600m
MSL
-1,000mM
SL -800m
MSL
-400mM
SL -200m
MSL
0mM
SL386,400mN 387,200mN386,600mN
386,600mN
386,800mN
386,800mN
387,000mN
387,000mN386,400mN385,600mN
385,800mN385,400mN 385,600mN 386,000mN 386,200mN
385,800mN 386,000mN 386,200mN
-800
mM
SL -6
00m
MSL
385,400mN -1,0
00m
MSL
200
mM
SL 0
mM
SL -4
00m
MSL
-200
mM
SL
D'D
11-C
T-98
Planned hole
Planned hole
Hole in progress
1005.00 E.O.H.
150
metres
300
Intercepts reported as:True width (m), Au grade (g/t)
Curraghinalt DepositFigure 6: D - D'
(Section 257680E)Date:30/08/2011
Author: Dalradian
Office: Gortin
Projection: Non-Earth (meters)
Drawing: KB
Scale: 1:8000
750
Shear zone
Vein (projected)
Vein (intersected)
Legend
Planned drillhole
Drillholecomplete/activeReported drillhole
Cross-section E to E'
28
200mM
SL -400m
MSL
-200mM
SL 0m
MSL
-1,000mM
SL
386,800mN 387,000mN
386,400mN
386,600mN 387,200mN
386,800mN386,600mN 387,000mN 387,200mN
386,200mN 386,400mN -1,0
00m
MSL
385,400mN
-800
mM
SL -800m
MSL
-600
mM
SL -600m
MSL
386,200mN
386,000mN385,600mN
385,400mN 385,600mN 385,800mN
385,800mN
386,000mN -4
00m
MSL
-200
mM
SL 0
mM
SL 2
00m
MSL
E'E
11-C
T-96
11-C
T-92
Planned hole
Planned hole
355.00 E.O.H.
469.00 E.O.H.
Planned hole
Planned hole
Intercepts reported as:True width (m), Au grade (g/t)
150
metres
300
Drawing: KB
Curraghinalt DepositFigure 7: E - E'
(Section 257850E)Date:.30/08/2011
Dalradian Resources
Scale: 1:8000 Projection: Non-Earth (meters)
Author: Dalradian
Office: Gortin
0 75
Shear zone
Vein (projected)
Vein (intersected)
Legend
Planned drillhole
Drillholecomplete/activeReported drillhole
Cross-section F to F'
29 11
-CT-
99
-400mM
SL
386,800mN
-800mM
SL -600m
MSL
387,000mN386,800mN
386,200mN386,000mN
386,200mN 386,400mN
386,400mN
386,600mN
386,600mN
-800
mM
SL -6
00m
MSL
-400
mM
SL -2
00m
MSL
-200mM
SL 0
mM
SL 0m
MSL
200
mM
SL 200m
MSL
385,600mN
385,800mN
385,800mN
386,000mN385,600mN385,200mN 385,400mN
385,400mN
Planned hole
Planned hole
Planned hole
Hole in progress
Planned hole
Planned hole
Intercepts reported as:True width (m), Au grade (g/t)
Curraghinalt DepositFigure 8: F - F'
(Section 258235E)
150
metres
300
Drawing: KB
Scale: 1:7000 Projection: Non-Earth (meters)
Date:30/08/2011
Author: Dalradian
Office: Gortin
750
Shear zone
Vein (projected)
Vein (intersected)
Legend
Planned drillhole
Drillholecomplete/activeReported drillhole
A Golden Opportunity in Northern Ireland
Patrick F. N. Anderson
Chairman and Chief Executive Officer
Shae-Lynn Mathers
Director, Investor Relations: 416-583-5622
Trading Symbol: DNA on TSX
Corporate Office:
Dalradian Resources Inc. 155 Wellington Street West
Suite 2920 Toronto, ON M5V 3H1
www.dalradian.com