VANCOUVER (miningweekly.com) – Canadian explorer and development company Dalradian Resources has submitted a mine planning permit application with Northern Ireland’s Infrastructure department (DfI), reflecting a significant milestone in the project’s evolution from a small deposit to a world-class mine.

"This is an exciting day for Dalradian and for Northern Ireland. It is the culmination of seven years of exploration, engineering and environmental work on the Curraghinalt deposit and financings that have raised more than C$260-million for our work in Northern Ireland.

“We have transformed the project from a small, early-stage deposit to one of the best gold projects on the planet. Building and operating a mine at the Curraghinalt deposit will create at least 350 permanent direct jobs and is expected to give a $1-billion boost to the local economy over the 25-year life of mine in the planning application,” stated president and CEO Patrick Anderson in a press release on Monday.

Dalradian – quoted on both the TSX and LSE Aim markets – said the planning application for building an underground mine and associated infrastructure at the Curraghinalt gold deposit comprises more than 10 000 pages, including nearly 40 detailed reports by independent experts from globally recognised environmental consulting firms.

Considered as one of the largest foreign direct investments to be made in Northern Ireland in recent years, the Curraghinalt project has been deemed "regionally significant" and therefore the decision to grant planning approval rests with the DfI.

Now that the planning application has been submitted to the DfI, the application will follow the planning review process, which comprises validating the planning application; a first round of consultation by DfI with the public and statutory consultees, including regulatory agencies and DfI consultants; a request for further environmental information, if necessary; further consultation by DfI with the public and statutory consultees; the DfI officers' recommendation to the Minister for Infrastructure/Permanent Secretary; and a decision.

However, the first part of the review process is expected to take up to a year and, given the scale of the project, it is expected that a public local inquiry will be held before a final decision can be taken – a process that could take up to a year to complete.

The planning application will be followed by two key developments in 2018 - the release of an updated mineral resource statement in the first quarter and a revised feasibility study in the second quarter.

The new mineral resource statement will be based on the drilling completed in 2017 and the feasibility study will incorporate the details of an expected updated mineral resource, revised modelling methodology and sorting technology.

Dalradian recently completed a sensitivity study on two major veins in the resource model where a new approach to modelling resulted in a 32% increase in estimated minable ounces.

PRIVATE PLACEMENT
To tide the company over during the permitting phase, top global financing firms Orion Mine Finance and Osisko Gold Royalties have closed a private placement with Dalradian, boosting its coffers by C$78.25-million.

“Their investment in Dalradian is a strong vote of confidence in our project and Northern Ireland. As a result, we are entering permitting with substantial funding that will allow us to continue to explore and further prove up the potential of the project. Our ongoing investment will ensure continued economic benefits to Northern Ireland through our training initiatives, jobs and supplier opportunities,” Anderson said.

Following the closing of the private placement, Orion owns about 9.6% of Dalradian and Osisko owns about 8.9% of Dalradian's issued and outstanding common shares.

This bolsters the balance sheet, as the company had cash and cash equivalents, at the end of September, of C$48.8-million, compared with C$35.7-million at December 31. Warrants exercised up to the end of the third quarter brought in C$30.6-million and, subsequent to the end of the quarter, a further C$19.2-million.

Curraghinalt currently hosts Canadian National Instrument 43-101-compliant proven and probable mineral reserves of 1.44-million ounces of gold and 660 000 oz of silver, held in 5.24-million tonnes grading 8.54 g/t gold and 3.9 g/t silver. Measured and indicated resources account for 2.1-million ounces of gold, held in 5.61-million tonnes grading 11.61 g/t gold. The deposit also hosts inferred resources of 7.13-million tonnes grading 10.06 g/t gold.

A December 2016 feasibility study has calculated an after-tax net present value, at a 5% discount rate, of C$301-million, and an internal rate of return (IRR) of 24.4% at an assumed gold price of $1 250/oz.

Dalradian's TSX-listed equity on Monday morning fell 5% to an intraday low of C$1.37 a share.