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May 2015High-Grade Gold │ High IRR │ Low Capex │ Northern Ireland │
Patrick F.N. AndersonChairman & Chief Executive Officer
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FORWARD-LOOKING INFORMATION AND QUALIFIED PERSON
2
This presentation contains “forward looking information” which may include, but is not limited to, statements with respect to the future financial or operating performance ofthe Company and its subsidiaries (collectively, “Dalradian”) and its mineral projects, the future price of metals, the estimation of mineral resources, the realization of mineralresource estimates, the timing and amount of estimated future production, costs of production, capital, operating and exploration expenditures, costs and timing of thedevelopment 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 regulatory matters. 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 such asthe continued political stability in Northern Ireland, that permits required for Dalradian’s operations will be obtained on a timely basis in order to permit Dalradian to proceed onschedule with its planned exploration and development programs, that skilled personnel and contractors will be available as Dalradian’s operations continue to grow, that theprice of gold will be at levels that render Dalradian’s mineral projects economic, that the Company will be able to continue raising the necessary capital to finance its operationsand realize on mineral resource estimates and current mine plans and that the assumptions contained in the Company’s Technical Report and PEA (both as defined herein) areaccurate and complete.
Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Dalradian tobe 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 and future exploration activities; the actual results of reclamationactivities; conclusions of economic evaluations; changes in project parameters and/or economic assessments as plans continue to be refined; future prices of metals; possiblevariations 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 orconstruction 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, 2013dated March 25, 2014 (the “AIF”) .
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 lookingstatements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward looking statements containedherein 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 newinformation, 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 beaccurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forwardlooking statements.
Certain technical data in this presentation was taken from the technical report entitled dated October 30, 2014 and titled "An Updated Preliminary Economic Assessment of theCurraghinalt Gold Deposit, Tyrone Project, Northern Ireland” (the “PEA”), prepared by Mr. Maunula, P.Geo., of T. Maunula & Associates Consulting Inc., Mr. Barnard Foo, P.Eng.,Mr. Bogdan Damjanovic, P.Eng., Mr. Andre Villeneuve, P.Eng., and Mr. Christopher Jacobs, CEng MIMMM, of Micon International Limited (“Micon”) and is subject to all of theassumptions, qualifications and procedures described therein.
Mineral resources that are not mineral reserves do not have demonstrated economic viability. The PEA is preliminary in nature. It includes inferred mineral resources that areconsidered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is nocertainty that the results of the PEA will be realized.
Ian R. Hardesty, MS, CPG, Senior Production Geologist, Dalradian Resources Inc., is the Qualified Person who reviewed and approved the technical information in thispresentation. The exploration data was based on the procedures described in the Company’s Technical Report and is subject to all of the assumptions, qualifications andprocedures described therein.
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PREMIUM ASSET IN A SCARCITY MARKET
1Ranking by Natural Resource Holdings, based on 2012 data
2014 PEA yields 36.2% IRR at $1,200 gold price
Moving high-margin, low capex project towards production
$30M work program advancing well –PFS, EIA and drilling
Strong government and community support
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THE BOARD: HAVE RAISED BILLIONS OF DOLLARS TO ADVANCE PROJECTS INTO MINES
PATRICK F. N. ANDERSONCHAIRMAN & CHIEF EXECUTIVE OFFICER
Founder & Former CEO of Aurelian Resources ‘08 – PDAC International Mineral Discovery ‘08 – Northern Miner Man of the Year
RONALD GAGEL
CFO of TMAC Resources; Former CFO of FNX Mining and Aur Resources
Director of Adriana Resources and StonegateAgricom
Former board member of HudBay Minerals and Central Sun Mining
‘13 – PDAC Distinguished Service Award
THOMAS OBRADOVICHLEAD INDEPENDENT DIRECTOR
Founder & Former CEO of Young-Davidson Mines
Former Director of Aurelian Resources
SEAN ROOSEN
Founder & CEO of Osisko Mining Corporation Also Director of Astur Gold ‘06 – Prospector of the Year - Quebec ‘08 – Prospector of the Year - Canada ‘09 – Northern Miner Man of the Year
JONATHAN RUBENSTEIN
Director of Eldorado Gold Director of Detour Gold Chairman & Director of MAG Silver Former Director of Aurelian Resources,
Sutton Resources, Canico Resource andCumberland Resources
PATRICK DOWNEY
Former CEO of Elgin Mining, Aura Minerals and Viceroy Exploration
Director of Claude Resources and Orezone Native of Northern Ireland
GRENVILLE THOMAS
Founder & Chairman of StrongbowExploration
Founder & Former Chairman, President & Director of Aber Resources (Harry Winston Diamond) now Dominion Diamond
‘99 – PDAC Prospector of the Year ‘01 – Northern Miner Man of the Year ‘09 – Canadian Mining Hall of Fame
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EXPERIENCED MANAGEMENT TEAM
PATRICK F. N. ANDERSONCHIEF EXECUTIVE OFFICER & CHAIRMAN
Founder & Former CEO of Aurelian Resources ‘08 – PDAC International Mineral Discovery ‘08 – Northern Miner Man of the Year
RUTH IVESVP PROJECT DEVELOPMENT
20 years of hands-on mining experience Senior engineering & mine planning roles in
seven underground gold operations
KEITH MCKAYCHIEF FINANCIAL OFFICER
Chartered Professional Accountant with extensive experience in the mining industry
Previously CFO at Continental Gold, AndinaMinerals and Aurelian Resources
ERIC TREMBLAYCHIEF OPERATING OFFICER
25 years of mine building and operating experience, mostly at underground mines
Most recently GM of Malartic mine; previously at Sleeping Giant, Doyon, Westwood, Mouska mines
TIM WARMANPRESIDENT
Professional geologist with over 20 years of experience in all phases of the mining industry
Director of Continental Gold Previously VP Corporate Development at
Aurelian Resources
DR. BRIAN KELLYMANAGING DIRECTOR
Most recently Managing Director, Ireland for CEMEX; previously Regional Director, Northern Ireland; joined CEMEX in 1994
Worked extensively in the aggregates and materials industry in Ireland and the UK as well as project work in Europe and AustraliaMARLA GALE
VP COMMUNICATIONS
20 years of communications experience Senior Investor Relations roles at Endeavour
Mining and Aurelian Resources
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ANALYST COVERAGE
All dollars quoted in $ CAD
$0.00
$0.25
$0.50
$0.75
$1.00
$1.25
$1.50
$1.75
$2.00
M J J A S O N D J F M A
2014
$0.90May 22, 2015
$1.75Michael Curran $1.75
Jamie Spratt
$1.35Mike
Kozak
Targets range from $1.25-$2.05
$1.25Andrew
Kaip$1.30
Adam Melnyk
2015
$1.45Jonathan
Guy
$1.50Laurie Curtis
90pCailey Barker
$1.30Joe
Mazumdar
$2.05Stuart McDougall
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CORPORATE SUMMARY
TSX: DNA STOCK PRICE
Shares outstanding of 163 million and fully diluted of 197 million as of May 4, 2015
Cash position of $45 million as of March 31, 2015
SHARE CAPITALIZATION AND CASH POSITION
All dollars quoted in $ CAD
AIM listing (DALR) is a tremendous opportunity to expand Irish, UK and European shareholder base
TOP TEN SHAREHOLDERS (REPRESENTING ~55%)
GEOGRAPHIC OWNERSHIP FOR IDENTIFIED SHAREHOLDERS
Canada 68%
US 29%
Europe 3%
Sprott (Sprott Asset Mgmt, Sprott Global and Sprott Wealth)
Ross Beaty
Rosseau
Front Steet
Insiders (4.4%)
Aegis
RBC
Julius Baer
Sun Valley
Tocqueville
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Our flagship asset: Curraghinalt high-grade lode gold deposit
Excellent regional infrastructure
Over 84,000 hectares under license
Gold
Base Metals
Other
Gortin
Omagh
Curraghinalt
BELFAST
N O R T H E R NI R E L A N D
GalantasGold
ConroyDiamonds& Gold
Lonmin
Irish SaltMining
Irish Salt (Kilroot)UG Mine
Curraghinalt GoldDeposit
Galantas (Cavanacaw)Previous open pit producer; permitting underground
Scotgold (Cononish)Permitted
Vedanta (Lisheen)In production
Boliden (Tara)In production
Lundin (Galmoy)Previous producer
Conroy (Clontibret)Gold exploration
Xstrata (Pallas Green)Feasibility
Wolf (Hemerdon)Tungsten Developer
MINERAL PROJECTS IN IRELAND & THE UK
Cleveland Potash (Boulby)In Production
Sirius (York Potash)In Development
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CURRAGHINALT RESOURCE
Since 2010, we have grown the resource 6-fold over 3 updates
High-grade gold resource1
Measured: 0.02 MT grading 20.15 g/t Au for 15,100 contained ounces
Indicated: 2.98 MT grading 10.34 g/t Au for 989,000 contained ounces
Inferred: 8.01 MT grading 9.67 g/t Au for 2.49 million contained ounces
Veins are predictable and continuous
Deposit is open in all directions
Drilling to support PFS began in March 2015
1 Refer to PEA
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EXCELLENT POTENTIAL FOR RESOURCE GROWTH
Curraghinalt
Deposit
12km
Curraghinalt
Trend
1 Refer to Technical Report2 12-CT-162 drilled at 180/-55. 12-CT-173 drilled at 150/-60; 2a from 186.00m- 188.22m, 2b from 229.08m - 230.55m ; true width undetermined3 11-CT-99 drilled from 471.14-474.34m4 12-CT-167 drilled from 201.93-204.40m
Vein and Vein Intersections
Curraghinalt
Deposit
Attagh Burn2.47m @ 18.99 g/t Au
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Curraghinalt DepositResource effective as of Jan 2014
1–
Measured: 0.02 Moz Au (0.02 MT @ 20.15 g/t)
Indicated: 0.99 Moz Au (2.98 MT @ 10.34 g/t)
Inferred: 2.49 Moz Au (8.01 MT @ 9.67 g/t)
Alwories Discovery Holes2
4.72m @ 14.82 g/t Au (12-CT-173)
2.22m @ 14.10 g/t Au (12-CT-162)2a
1.47m @ 23.60 g/t Au (12-CT-162)2b
400 m Step-out
3.2m @ 5.34 g/t Au (11-CT-99)3
900 m Step-out 0.65m @ 15.04 g/t Au (12-CT-154)
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GLACIATED TERRAIN WITH MINIMAL OUTCROP
Curraghinalt
Deposit
Curraghinalt
Trend
1 12-CT-162 drilled at 180/-55. 12-CT-173 drilled at 150/-60; 2a from 186.00 m- 188.22m, 2b from 229.08m - 230.55 m ; true width undetermined2 11-CT-99 drilled at 200/-60, from 471.14-474.34 m3 12-CT-167 drilled from 201.93-204.40 m
Curraghinalt
Deposit
Attagh Burn2.47m @ 18.99 g/t Au (12-CT-167)
3
Golan BurnOutcropping veins including
60cm @ 61.43 g/t Au
Gold Anomalies
1
kilometres
0 2
Vein and Vein Intersections
Scotch TownPeak of 10.52 g/t Au
In mineralized boulders
400 m Step-out
3.2m @ 5.34 g/t Au (11-CT-99)2
Alwories Discovery Holes1
4.72m @ 14.82 g/t Au (12-CT-173)
2.22m @ 14.10 g/t Au (12-CT-162)2a
1.47m @ 23.60 g/t Au (12-CT-162)2b
12KM GOLD TREND IS MOSTLY UNEXPLORED
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PEA SHOWS STRONG ECONOMICS
KEY PEA DATA*GOLD PRICE:
US$1,200/ounceGOLD PRICE:
US$1,054/ounce
NPV with 8% discount rate (After-tax) US$504 million US$366 million
IRR (After-tax) 36.2% 29.9%
Average Annual Production 162,000 ounces/year
Processing Rate 1,700 tonnes/day
Life of Mine 18 years
Initial Capex ($48M contingency) US$249 million
Cash Costs US$485/ounce; US$132/tonne
Diluted Grade 9.3 g/t Au
Gold Recovery 92%
Payback 2.6 years
* Prepared by Micon International Limited. PEA results released on October 30, 2014. Mineral resources that are not mineral reserves do not have demonstrated economic viability. 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. All dollars quoted in $ USD unless stated otherwise.
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DalradianCurraghinalt
ContinentalBuritica
RubiconPhoenix
RoxgoldYaramoko Pretium
Brucejack
0
5
10
15
20
25
30
35
40
45
0 100 200 300 400 500 600 700 800
IRR
(%
)
Capex (US$, millions)
THE HIGH IRR / LOW CAPEX SWEET SPOT
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NORTHERN IRELAND WELCOMES INVESTMENT
No. 1 Strategic priority of current government is jobs & investment
Invest Northern Ireland grant to Dalradian for $590,000 to support jobs and training during UG exploration phase
In a recent survey of our local residents, 78% were positive about the prospect of a mine in their area
Aug 2014 site visit by Arlene Foster, MLA,Minister for Enterprise, Trade and Investment
Planning decision
PERMITTING A MINE
Draft Project Description(pre-consultation with stakeholders via PAD)
Prepare EIASubmit Planning Application
Q1 2016
Planning NI Review
Permission to construct a mine will be based
on a Planning Application, which will consist
of a Project Description and an Environmental
Impact Assessment (EIA)
Review and approval is
estimated to take 1-2 years
Curraghinalt will likely be designated a project of
“regional significance”, which would allow
ministerial involvement in the planning decision
Pre-engage with DOE
via a Pre-Application
Discussion (PAD)
Granted
Refused
Referred to Public Local Inquiry
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UNDERGROUND PROGRAM
Proposed No. 1 Vein Development at 170m Level
Proposed Tunnel Extensions at 170 m Level
No1 Vein
106-16 Vein
V75 Vein
Bend Vein
Crow Vein
Proposed T17 Vein Development at 170m Level
Underground infill drilling
Underground infill drilling
Surface infill drilling
Existing Exploration
Tunnel
Consists of ~1,100 m of UG development plus ~20,000 m of drilling
Aim is to support the Pre-feasibility study by:
Demonstrating continuity of thickness and grade of veins
Converting inferred resources to M&I– 11 UG diamond drill bays for
~15,000 m drilling– 6 surface drill pads for
~4,500 m drilling
Geotechnical and hydrogeological testing
Ongoing metallurgical testing
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UG PROGRAM PROGRESS
Surface infill drilling nearing completion
3 UG drill bays complete and drilling has begun
Water treatment plant being commissioned
Magazine and waste rock storage nearly complete
Existing adit ready for new development
Alimak installed
Safety bays installed
Old ground support and tracks removed; shotcreting ongoing
Services being installed
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2015 WORK PROGRAM
Jan2015 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2015
Surface Work
UG development
Infill drilling
Resource update
EIA preparation and submission
Pre-feasibility study
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DNA HIGHLIGHTS
Market is focussing on the handful of quality projects in good jurisdictions that are financeable
Curraghinalt is a top quartile project: high IRR and low capex in Northern Ireland
During 2015 we are de-risking the project through:
UG exploration
Drilling
PFS
Environmental and permitting work
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Patrick F.N. Anderson
Chairman & CEO
Marla Gale
VP, Communications
416.583.5622
Trading Symbol:
DNA on TSX
DALR on AIM
Corporate Office:
Dalradian Resources Inc.
155 Wellington Street West
Suite 2920
Toronto, Ontario
Canada M5V 3H1
www.dalradian.com
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2009
Dalradian
Resources
acquires
Dalradian Gold
1652
Modern exploration begins
Rio Tinto explores Tyrone Volcanic
belt (incl. DG-2 licence) for base
metal deposits
GSNI reports widespread gold and
pathfinder elements in local streams
1970s
EXPLORATION HISTORY OF THE DEPOSIT
2010
2000
1990
1980
1970
2000 – 2009
Project owned by
various Vancouver
juniors
56 drill holes
Initial resource of
640,000 oz
Gold reported in the
Moyola River, 20 miles
east of Curraghinalt
Ulster Minerals/Ennex period
1983 - No. 1 vein discovered in Curraghinalt burn
Surface trenching (~3000 m) and Surface drilling
(~30,000 m)
1987/89 - 710 m underground development using
a road header
1982 – 1999
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PROGRESS SINCE PROJECT ACQUISITION
2009
Project Acquisition
- December
600 k ounce gold
resource1
2011
7 rigs onsite
Increased to 2.7 M
ounce gold resource1
51,000 m of drilling
2013
UG planning permission
VP Project Development hired
Extensive drilling and
re-sampling completed
2010
Increased to 1.5 M
ounce gold resource1
IPO – August
30,000 m of drilling
2012
Robust PEA
announced
New discovery
at Alwories
Increased to 3.5 M ounce gold resource1
UG program underway
Updated PEA
Commenced PFS & EIA
First blast
2012
2011
2010
2009
2014
2015
2013
1 Refer to press releases of Nov. 30, 2011 and April 16, 2014 at www.dalradian.com
2014
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GOVERNMENT SUPPORT OF OUR LONDON LISTING
Jonathan Bell, a junior minister in Northern Ireland, said: “Further education colleges are already preparing to give young people the skills they will need for the opportunities that are being provided.” The Times, Dec. 4, 2014
“Pat Doherty, the area’s Sinn Fein MP, believes the Curraghinalt mine should go ahead provided it complies with planning and environmental requirements, with most people in the area supportive.” Financial Times, Dec. 5, 2014
Jonathan Bell, MLA (second form left)
Junior Minister in First Minister’s office
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UG PEER COMPARISON – All dollar figures in US$
Company Project
StageDiluted grade (g/t)
Size (prodn
mine liferesource)
CapexOperating
costIRR &
NPV5 *Market
capJurisdiction
PretiumBrucejack
FS 14.1
404,00018 years
8.7M oz M&I4.9M oz Inf
$747M$347
$150/t31.5%$1.7B
$860M Canada (BC)
ContinentalBuritica
PEAcompleted
7.8 265,00018 years
2.8M oz M&I4.2M oz Inf
$390M $431/oz$109/t
31.5%$1.1B
$250M Colombia
Dalradian Curraghinalt
PFS ongoing
9.3 162,000 ozs18 years
1M oz M&I2.5M oz Inf
$249M $485/oz$132/t
36% $716M
$150M NorthernIreland
Rubicon Phoenix
Construction PEA
PermittedFinanced
8.1
165,00013 years
1.1M oz M&I2.2M oz Inf
$342M$620/oz$144/t
14.8%$236
$440M Canada (ON)
RoxgoldYaramoko
FSPermittedFinanced
12
87,00010 years
0.8M oz M&I0.3M oz Inf
$107M$508
$140/t42.4%$218M
$160M Burkina Faso
* After-tax, at US$1,200 gold and 5% discount rate