JOHANNESBURG (miningweekly.com) – Dual-listed Dalradian Resources is expecting a substantial improvement to the economics of its Curraghinalt gold project when it releases a new feasibility study (FS) later this year, COO Eric Tremblay said on Thursday.
His comments follow the release of an updated mineral resource statement for the gold deposit in Northern Ireland, which included a 46% increase in gold ounces contained in the measured and indicated categories and a 32% increase in inferred gold ounces, compared with the 2016 resource.
Measured and indicated resources stand at 3.07-million ounces of gold contained in 6.35-million tonnes, grading 15.02 g/t.
“Our starting point for the new FS is a total measured and indicated resource of 3.1-million ounces, compared with 2.1-million ounces in the prior FS. This should allow us to deliver a substantial improvement to the already strong economics shown in the initial FS,” Tremblay said in a news release.
The 2016 FS calculated an after-tax net present value, at a 5% discount rate, of $301-million, and an internal rate of return of 24.4% at an assumed gold price of $1 250/oz. The study estimated that, over the initial ten-and-a-half years life-of-mine, Curraghinalt will produce 1.36-million ounces of gold and 380 000 oz silver, using an average overall gold recovery of 94.3%.
Dalradian is expecting the updated study to deliver an increase in yearly production and a decrease in costs because of greater mining mechanisation.
The Curraghinalt gold deposit is an orogenic gold system consisting of a series of moderately to steeply dipping, structurally controlled, high-grade gold bearing quartz-carbonate veins over a 2.3 km strike length.
Tremblay said that test stoping had proved that it could minimise dilution in mining the high-grade, narrow veins.
Dalradian will release the updated FS in the third quarter.
Meanwhile, Greg Hope was appointed VP for exploration, after three years with the company as exploration and geology manager.
Dalradian pointed out that Hope had 21 years of exploration and mining experience across five continents, including operational roles at narrow, high-grade gold deposits in the eastern goldfields of Western Australia, the Witswatersrand in South Africa and elsewhere.