TORONTO (miningweekly.com) – TSX-listed Dalradian Resources, which is developing the Curraghinalt high-grade lode gold deposit, in Northern Ireland, said it expected a positive outcome at the final stakeholder’s meeting on Monday, to allow it to proceed with the next phase of underground development and bulk sampling.

The company on Thursday said the application had been progressing through the Department of Environment's (DoE's) planning approval process, with the strategic planning division (SPD) of the DoE recently recommending approval of the project.

After the Omagh District Council had voted on Monday to ratify the positive recommendation from the SPD for the underground exploration programme, Dalradian expected to receive the final planning permission, including terms and conditions, shortly thereafter.

It said it expected to comply with planning preconditions, including approving various environmental management plans, by the end of January 2014, by which time the company expected to start awarding surface and underground contracts.

Earthworks would start during the first quarter of 2014, while a resource update would be completed concurrently.

Dalradian also said it expected to update its preliminary economic assessment (PEA) during the second quarter of 2014.

Underground blasting was expected during the second quarter, followed by stoping beginning in the third quarter.

Metallurgical testing would start in the fourth quarter.

Dalradian's current PEA, dated July 25, 2012, reported positive results for a proposed underground mine at Curraghinalt, including average output of 145 000 oz/y of gold over a 15-year mine life.

The mine would have an after-tax internal rate of return (IRR) of 41.9% using a three-year trailing average gold price of $1 378/oz, and an after-tax IRR of 33.4% using a five-year trailing average gold price of $1 166/oz. At the ten-year trailing average gold price of $814/oz, the after-tax IRR would be 20.2%.

Based on an 8% discount rate, Curraghinalt had a net present value (NPV) of $467-million at the three-year average gold price, and a NPV of $331-million when using the five-year average gold price.

The mine would cost $192-million to build, which includes a $38-million contingency.

The cash cost per ounce was estimated at $532.

Curraghinalt currently hosts a National Instrument 43-101-compliant measured mineral resource of 20 000 t grading 21.51 g/t gold for 10 000 contained ounces, indicated mineral resource of 1.11-million tonnes grading 12.84 g/t gold for 460 000 contained ounces and inferred mineral resource of 5.45-million tonnes grading 12.74 g/t for 2.23-million ounces.

The company’s stock was trading 7.27% higher on Thursday at C$0.59 apiece. The stock had lost 65.19% from the start of the year.