Name of the Project
Curraghinalt gold project.

Location
Northern Ireland.

Client
Dalradian Resources.

Project Description
The Curraghinalt gold deposit is an orogenic gold system comprising a series of moderately to steeply dipping, structurally controlled, high-grade gold bearing quartz-carbonate veins over a 2.3 km strike length.

The project has proven and probable 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.

The feasibility study has highlighted a project with high expected profitability and returns, as well as a strong economic case for advancing it to development.

The mine will be operated using automation, mechanised underground mining methods and best-in-class processing. The dry-stack tailings from the process will not come into contact with cyanide.

Curraghinalt is expected to be accessed through the existing exploration adit and a new ramp to be developed adjacent to the proposed plant site.

The new ramp will serve as the primary access to the mine for personnel and materials, and the haulage of mineralised materials to the plant site.

Yearly ore production of up to 511 000 t is planned from a combination of a primary longitudinal longhole retreat, with some cut-and-fill mining methods and development along the veins.

Potential Job Creation
Direct employment is estimated at 300. Once the mine is in operation, it is expected to employ at least 350 people in permanent positions.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 5% discount rate, of $301-million and an internal rate of return of 24.4% using an assumed gold price of $1 250/oz. Payback is estimated at four years.

Value
The project has an initial capital cost, including contingency, of $192-million.

Duration
The project is expected to take 18 to 24 months to build.

Latest Developments
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.

This follows the release of an updated mineral resource statement for the gold deposit, which includes 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,” Dalradian COO Eric Tremblay has said.

Dalradian is expecting the updated study to deliver an increase in yearly production and a decrease in costs because of greater mining mechanisation.

Tremblay has said that test stoping proved that it can minimise dilution in mining the high-grade, narrow veins.

Dalradian will release the updated FS in the third quarter.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Dalradian Resources VP: communications and corporate secretary Marla Gale, tel +1 416 583 5600 or email info@dalradian.com.