49
Patrick F. N. Anderson CEO Explora8on Northern Ireland │ Site Visit July 2013 Sample from the T17 vein 188 g/t of gold 103 g/t of silver 5.07% of copper
Patrick F. N. Anderson CEO
Explora8on Northern Ireland │ Site Visit July 2013
Sample from the T17 vein 188 g/t of gold 103 g/t of silver 5.07% of copper
Forward-‐Looking Informa;on and Qualified Person
This presenta8on contains “forward‑looking informa8on” which may include, but is not limited to, statements with respect to the comple8on of the acquisi8on (the “Acquisi8on”) by the Company from a group of private vendors of approximately 1.7 million hectares of mineral rights over four greenstone belts and a historic silver mining camp in Norway, 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. OZen, 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 approvals from the Toronto Stock Exchange and the Norwegian Directorate of Mining will be obtained in respect of the Acquisi8on, 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 drilling 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 project economic, or that the Company will be able to con8nue raising the necessary capital to finance its opera8ons and realize on mineral resource es8mates.
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 explora8on ac8vi8es; actual results of reclama8on ac8vi8es; conclusions of economic evalua8ons; changes in project parameters as plans con8nue to be refined; future prices of metals; possible varia8ons of ore grade or recovery rates; 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 abempted 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.
Some technical data in this presenta8on was taken from the technical report en8tled “A updated Mineral Resource Es8mate for the Curraghinalt Gold Deposit Tyrone Project, County Tyrone and County Londonderry, Northern Ireland” dated January 10, 2012, prepared by B. Terrence Hennessey, P.Geo., and Dibya Kan8 Mukhopadhyay, M.Sc., MAusIMM, of Micon Interna8onal Limited (the “Technical Report”).
Michele L. Cote, MSc., P. Geo., VP Explora8on, Dalradian Resources Inc., is the Qualified Person who supervised the prepara8on of the technical data in this presenta8on.
2
Northern Ireland
3
§ Our flagship asset: Curraghinalt lode high-‐grade gold deposit
§ Excellent regional infrastructure
§ Over 84,000 hectares under license
§ Recent surge in gold sector
Gor8n
Omagh BELFAST
NORTHERN IRELAND
Cavanacaw Galantas Gold
Conroy Diamonds & Gold
Lonmin
Irish Salt Mining
Curraghinalt Gold Deposit
Clon;bret
Croagh Patrick Parys Mountain
Gwynfynydd Galmoy Avoca
Pallas Green Silvermines
South CroMy
Gold Base Metals Salt Mine
Allihies Copper Mines
Galantas Gold Permibed in 2007
Scotgold Permibed in 2012
Vedanta Resources In produc8on
Boliden In produc8on
IMC Explora;on 354 g/t gold over 1.5m
Underground Salt Mine
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
Generalized Geology
4
PHANEROZOIC GOLD DEPOSITS IN OROGENIC BELTS
Curraghinalt
Hope Brook Haille
Building Momentum…
5
§ In the last 2 years…
– 5-‐fold increase in ounces
– Recognized poten8al of secondary vein set
– Robust PEA
– Extended Curraghinalt gold trend 4 km by drilling
§ 12 km trend & proven explora8on method (prospec8ng > soil sampling > drilling)
§ Successful permisng program
§ Clear strategy, competent team
News Flow 2012/2013
Curraghinalt Drilling: • 3.35m @ 13.80 g/t Au • 3.75m @ 10.43 g/t Au • 1.48m @ 22.83 g/t Au
2013
2012 Q1 Q2 Q3 Q4
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Fallagh Prospect announced with float samples of: • 30.30 g/t Au • 29.20 g/t Au
Completes airborne geophysical survey
Posi;ve PEA
43-‐101 Technical Report filed
Soil geochem grid iden8fies new targets
Water discharge permit in hand Curraghinalt Drilling:
• 2.34m @ 47.94 g/t Au • 3.97m @ 38.00 g/t Au
Alwories discovery 1.47m @ 23.62 g/t Au 2.22m @ 14.07 g/t Au
C-‐veins show wall rock carry gold
More Alwories Intercepts: • 4.72m @ 14.82 g/t Au • 1.28m @ 30.58 g/t Au
2013 Explora8on Program Announced
$28.2 million bought deal financing announced
Micon appointed as lead consultant for PEA
Curraghinalt Drilling: • 1.7m @ 17.55 g/t Au • 2.47m @ 18.99 g/t Au
6
Curraghinalt Drilling Deep Hole: • 1.54m @ 30.13 g/t Au Step-‐Out: • 5.35m @ 6.60 g/t Au
Applica;on Submieed for Underground Explora;on Development
Q1
JAN FEB MAR APR Q2
C-‐Vein Sampling: 0.76 m of 33.6 g/t of gold Becomes 7.21 m of 7.58 g/t of gold
MAY JUN
VP Development is Hired
Q2
JUL SEP AUG
Curraghinalt Drilling: • 1.21m @ 41.22 g/t Au • 4.88m @ 8.61 g/t Au • 1.48m @ 22.83 g/t Au Alwories Drilling: • 0.73m @ 32.81 g/t Au
No Environmental Statement Required for Underground Development Confirmed
Curraghinalt Deposit
7
Measured: 0.01 Moz Au @ 21.51 g/t)
Indicated : 0.46 Moz Au @ 12.84 g/t)
Inferred: 2.23 Moz Au @ 12.74 g/t)
§ Open in all direc8ons except up
8
CURRAGHINALT RESOURCE ESTIMATE
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
2007 (Pre-‐DNA)
2010 DNA Year 1
2011 DNA Year 2
2012 DNA Year 3
Millions of Ounces Metres Drilled
27 years of work 3 years of work
§ 1986-‐1987 resources es8mates are historic non 43-‐101 compliant resources
§ 2003 to 2011 resource es8mates are reported 43-‐101 compliant
1) Images presented for illustra8ve purposes only
Curraghinalt Resource
RESOURCE AS AT NOV 2011:
?
9
Vein 2010 M+I Ounces (1)
2010 Inferred Ounces (1)
2011 M+I Ounces (2)
2011 Inferred Ounces (2) % of Resource
No. 1 102,929 306,135 123,778 596,969 27
106-‐16 100,202 314,128 162,035 429,048 22
T17 86,245 234,165 56,055 307,339 13
Crow 0 15,580 0 282,568 10
Bend 0 24,379 0 213,344 8
V75 18,982 21,234 32,874 100,937 5
Sheep Dip 3,595 23,808 6,809 69,107 3
Mullan 3,140 42,774 1,797 57,346 2
Road 0 0 4,677 53,002 2
Others 113,351 173,484 82,875 122,803 8
Total Ounces 428,444 1,155,687 470,899 2,232,464
1) 43-‐101 resource by Micon dated May 10, 2010 2) 43-‐101 resource by Micon dated Jan 10, 2012, effec8ve date November 30, 2011
62%
43-‐101 Resource
Road Sheep
Mullan
T17
No1
106-‐16
V75
Bend
Crow
0
100
200
300
400
500
600
700
800
0 100 200 300 400
Oun
ces in 2011 Resou
rce (1000s)
No of Pierce Points (Composites from Surface Drillholes which contributed to the 2011 Resource) 10
Gold Endowment by Vein -‐ a Func;on of Drilling
10 * Combined resource categories
Pierce Points vs Resource Ounces*
Cross Sec;on 12-‐CT-‐156 & 12-‐CT-‐157
11
A -‐ A’
B -‐ B’
Poten;al to Expand the Resource
§ Assembled 80 km of historical core in a modern facility
§ Most was found systema8cally undersampled
§ Iden8fied a mineralized oblique vein set
12 12 Dalradian Gold Omagh,
Core Facility
§ Poten8al to increase ounces & mining widths
§ Posi8ve poten8al implica8ons for dilu8on
Poten;al to Expand the Resource
13 13
‘Resource’ or ‘D’ Vein Newly iden;fied ‘C’ Vein
Plan View Looking North
600 m hole yielded over 1000 veinlets
Broader Mineralized Zones
14
CROSS-‐SECTION A – A’
Broader Mineralized Zones
CROSS-‐SECTION A – A’
15
Drill Hole Plan
16
CURRENT DRILL PROGRAM
Intercept in hole 11-CT-99 projected up dip to 170m mSL
Not a Trend but a District
GLACIATED TERRAIN WITH MINIMAL OUTCROP
12 km
1700m
Curraghinalt Deposit
Curraghinalt Trend
17
Curraghinalt Trend Veins in Current Resource Intersected Veins
Historical Findings Geochem Anomaly
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)
Golan Burn Outcropping veins including 60cm @ 61.43 g/t Au
Alwories Discovery Holes 4.72m @ 14.82 g/t Au 2.22m @ 14.10 g/t Au 1.47m @ 23.6 2g/t Au
400 m Step-out 3.2m @ 5.34 g/t Au
Attagh Burn 2.47m @ 18.99 g/t Au
Next Steps
• Drill Results Finalized • Historic Sampling Program Comple8on
• Historic Sampling Interpreta8on & Results
• Underground Permit
• Underground explora8on development commences
Ruth Ives VP Development
PEA & Development Update Northern Ireland │ Site Visit July 2013
Sample from the T17 vein 188 g/t of gold 103 g/t of silver 5.07% of copper
PRELIMINARY ECONOMIC ASSESSMENT
Preliminary Economic Assessment
21 21
KEY PEA DATA* 3 YEAR TRAILING
AVERAGE GOLD PRICE: 5 YEAR TRAILING
AVERAGE GOLD PRICE:
NPV with 8% discount rate (AZer-‐tax) $467 million $331 million
IRR (AZer-‐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%
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
PEA: Mining
22 22
22
Longhole Mining with Ramp Access & Truck Haulage: § Local availability of experienced longhole miners § More dilu8ve than cut and fill but less expensive and
easier to manage § 1.8 metres mined width (80% dilu8on on resource) § 20 metre sub level spacing § Less than 10 working faces at any one 8me
PROJECT PRODUCTION RATE
(TPD) MINING COST (US$/T MILLED) COMMENTS
Curraghinalt (Dalradian, N. Ireland)
1,700 (planned)
$76.50 (US$/t mined) (PEA es8mate) 1.8 m stope widths
Bulyanhulu (African Barrick, Tanzania) 3,300 $156.00 Narrow, steeply-‐dipping veins
Daisy Milano (Silver Lake Resources, W. Australia)
540 Cash Costs of $660/oz Stope widths down to 1 m
Lawlers (Barrick, Australia) 2,200 $30.06
(2003) Shallow dipping veins, 2-‐6 m thick
Development tunneling at Bulyanhulu Gold Mine
23
Silver Lake Resources Daisy Milano Mine
PEA: Narrow Vein Longhole Mining in W. Australia
Narrow vein stoping
PEA: Conceptual Mine Layout
Main Decline
Ore and Waste Passes
Ramp Connec8ng Sublevels
Exis8ng Adit and DriZs
Ven8la8on Raise
Cross Cuts
Not to Scale
PEA: Processing
25 25
25
Op;ons Examined:
§ Grinding → Whole Ore Leach
§ Grinding → Gravity → Flota8on of Gravity Tails → CN of Flota8on Concentrate
§ Grinding → Gravity → Flota8on → Sale of Concentrate(s)
§ Grinding → Cu Flota8on → Pyrite Flota8on → CN of Pyrite Concentrate
PEA Base Case:
§ Crushing, grinding, whole ore cyanida8on and conven8onal tailings disposal
§ 92% gold recovery
§ Opportunity for further op8miza8on of mill circuit
UNDERGROUND EXPLORATION DEVELOPMENT
Background
§ Exis8ng explora8on tunnel permibed in 1987 and subsequently constructed by Ulster Minerals in the late 80s, with works consis8ng of:
– A 410 m adit (3.0 x 2.5 m) and two driZs totalling 290 m (s8ll accessible, stable and in use)
– Ancillary buildings (now removed)
– Onsite stockpiles of surplus rock (since re-‐graded into exis8ng slope contours)
– Quan88es of mineralised rock transported to offsite tes8ng facili8es
§ DGL acquired the Curraghinalt Project in late 2009 and commenced surface explora8on drilling in 2010
§ DGL upgraded the resource es8mates in Q2/2010 and again in Q4/2011
– Current resource stands at 2.7 million oz. gold (all categories)
§ DGL completed Preliminary Economic Assessment (PEA) in Q3/2012
§ Next step is to conduct underground explora8on development
27
28
Underground Explora;on Development
Dalradian is reques8ng planning permission to complete approximately 2,000 m of underground development including: § Extending the exis8ng adit by approximately
260 m to intersect all of the known veins; § DriZing along several of the known veins; § Installing a ramp to access the 150 m level,
approximately 20 m below the exis8ng workings;
§ Test stoping and removal of a large bulk sample.
T17 AT 170LVL
No. 1 AT 170LVL
106_16 AT 170LVL
EXISTING DEVELO
PMEN
T
PLANNED STOPING
SHEEPDIP AT 150LVL
No. 1 AT 150LVL
106_16 AT 150LVL
T17 AT 150LVL
29
Conceptual Sublevel Development
The goal of the program is 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 permisng process.
ROAD
SHEEPD
IP
MULLAN
T17 No. 1
106_16
BEND
CROW
EXISTING DEVELOPMENT PLANNED DEVELOPMENT
PLANNED DEVELOPMENT
PLANNED STOPING
Surface Facili;es
Proposed Works – Surface Facili;es:
§ Designated on-‐site storage area for surplus rock
§ Temporary water treatment facility
§ Temporary on-‐site explosives store
§ Ancillary facili8es: office, welfare, services, parking, etc.
§ Project will be constructed on surface lands controlled by DGL
30
Permiung Process
§ Consulta8on with The Crown Estate and DETI § Consulta8on with other stakeholders & regulators § Planning permission (DoE Planning Service – Strategic Planning Division) § Explosives storage consent, revision to the exis8ng discharge consent; water abstrac8on licence;
waste management (NIEA)
§ Explosives store consent (DoJ / DoE)
31
Pre-‐ consulta;on
Revisions to Exis;ng Permits
Mobiliza;on and Site Prep.
2013 2014 Q1 Q2 Q3 Q4 Q1
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR
Planning Process
Explosives Storage Consent
Contractor Selec;on
UG Development
EIA not required
Planning Permission
Judiciary Review Period
Project Timeline
§ Assumes planning permission and related permits received in Q3/2013 § Actual underground work would last 8-‐12 months depending on advance rates § Metallurgical tes8ng would carry on aZer the end of underground work § Closure would take approximately 3 months if required
32
2013 2014 Q4 Q1 Q2 Q3 Q4
OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Mob. & Site Prepara;on
Test Stoping
Explora;on Tunnelling
Hydrogeol. & Geotech. Inves;ga;ons
Backfill Tes;ng
Closure (if required)
Metallurgical Tes;ng
Next Stop
Underground Tour of Curraghinalt Deposit
Tim Paul Managing Director, SLR Consul8ng Ireland
Permisng in Northern Ireland│ July 2013
35
Agenda
§ Legisla8ve Framework & Key Regulatory Agencies
§ Curraghinalt Project Sesng
§ Work by Dalradian (“DGL”) to date
§ DGL’s experience with the permisng process to date
§ Permisng a mine in Northern Ireland
§ Summary
Legisla8ve Framework & Key Regulatory Agencies
37
Legisla;ve Framework and Key Regulatory Agencies
Northern Ireland has a separate yet similar regulatory framework to that of the rest of Great Britain
Key Agencies for Mining:
§ Department of Enterprise, Trade and Investment (DETI)
§ Department of Environment (DoE)
§ Loughs Agency
EU Direc8ves
UK Law
NI Law
Curraghinalt Project Sesng
39
Curraghinalt Project Seung
§ within the Sperrin Mountains Area of Outstanding Natural Beauty
§ adjacent to the Owenkillew River Special Area of Conserva8on/Area of Special Scien8fic Interest
Sperrin Mountains AONB
Owenkillew River SAC/ASSI
Curraghinalt Alwories Quarry
Greencastle Quarry Gor;n Glen
Forest
Hadden Quarries
McAnenly Quarries
Stone Quarries
Progress To Date
Progress to Date
§ Environmental baseline studies
– Commenced February 2011
– Baseline data collected includes flora & Fauna, surface water, groundwater, air quality, noise, vibra8on, landscape, socio-‐economic, cultural heritage, traffic
– Presented findings of first year of data collec8on to the Northern Ireland Environment Agency (NIEA) and Loughs Agency in November 2012, very well received
– Ongoing environmental monitoring programme
§ Underground drilling water discharge consent
– Prompt processing and issuance of a water discharge consent by NIEA (within their target 4 month period) for underground drilling despite proximity of the Owenkillew River SAC / ASSI
Progress to Date (con;nued)
§ Social licence to operate
– DGL have social licence to operate with proac8ve stakeholder engagement programme including the local community and regulatory agencies
– Local community: regular townhall mee8ngs
– Regulatory agencies: update consulta8ons and site visits (including DoE Strategic Planning Division, NIEA, Loughs Agency, DETI, HSENI)
§ Current permisng for major underground explora8on development
Permisng UG Explora8on Development
Progress to Date
§ DraZ Project Descrip8on completed late November 2012
§ Pre-‐consulta8on mee8ngs with stakeholder groups from December 2012 through January 2013 to present the project, iden8fy key areas of concern, and incorporate consulta8on feedback into the applica8on documenta8on
§ Planning Applica8on with revised Project Descrip8on and suppor8ng studies submibed to DoE Strategic Planning Division on February 18th, 2013
– DoE Strategic Planning Division is the coordina8ng agency, distribu8ng the applica8on to statutory consultees, receiving and integra8ng feedback, and issuing the Planning Permission
§ Based on input from consultees, DoE Strategic Planning Division determined on July 5th, 2013 that an EIA was not required for the project
– This EIA screening decision was largely due to a well-‐prepared Project Descrip8on and suppor8ng studies, and posi8ve rela8onships with regulators and the local community
Progress to Date (con;nued)
§ Next step for DoE Strategic Planning Division is to write the actual permit which will contain specific terms and condi8ons
– DGL will con8nue to consult with DoE Strategic Planning Division and other agencies on the terms and condi8ons
§ Final permit expected in approximately 4 months from the EIA screening decision (Q4 2013).
§ There is NO third party right of appeal of these permits
– Third par8es have 3 months to request a Judicial Review of the process used to grant the permit. This is a very costly legal process for third par8es
– Strategic Planning Division has been very careful with the process in our case
– This has delayed the EIA screening decision somewhat, but has reduced the risk of a request for Judicial Review being granted
§ DGL has submibed a discharge consent applica8on to NIEA and an explosives storage licence applica8on to Department of Jus8ce
Permisng a Mine
Mine Permiung
§ Permisng of an eventual underground mine at will likely fall under Ar8cle 31 of the Planning (Northern Ireland) Order 1991 – The Ar8cle 31 designa8on is typically applied to “strategic” projects
– allows for direct involvement by the Minister of the Environment in the planning decision
§ The planning process for a mine will include: – The development of a robust project descrip8on for the mine and related infrastructure,
– Scoping of the EIA through consulta8ons with stakeholders
– Carrying out the EIA and Appropriate Assessment (Habitats Regula8ons)
§ Planning Applica8on is submibed to DoE Strategic Planning Division along with the Environmental Statement
§ DoE Strategic Planning Division makes an Ar8cle 31 determina8on, followed by a decision on whether a Public Local Inquiry (PLI) is needed
§ Public Local Inquiry typically lasts several weeks, aZer which the findings are reported back to DoE Strategic Planning Division – Delays in holding PLIs can be significant, up to 12 months in some cases, although the DoE has a
mandate from the Minister to speed up the process
§ A decision is made whether to approve or deny the Planning Applica8on – Ar8cle 31 decisions are final (no recourse to Planning Appeals Commission), but Judicial Review of
the process is s8ll available
Summary
Mine Permiung
§ The permisng process in Northern Ireland is thorough, but DGL have demonstrated that permisng can be done in a 8mely manner
§ DGL has established strong posi8ve rela8onships with the regulatory agencies and the local community
§ Minister Abwood (DoE) is publically commibed to speeding up the planning process in Northern Ireland
§ Lessons learned from permisng the underground explora8on development program will be invaluable in permisng an eventual mine
