Dalradian Announces Updated Mineral Resource Estimate at
Curraghinalt Resulting in a 114% Increase in Measured and Indicated
Gold Ounces
TORONTO, ONTARIO--(Marketwired - Apr 16, 2014) - Dalradian
Resources Inc. ("Dalradian" or the "Company") (TSX:DNA) announces
an updated mineral resource estimate for its 100% owned
Curraghinalt gold deposit, located in Northern Ireland.
Highlights include:
- 114% increase in Measured and Indicated resource to 1.0 million
contained gold ounces at a 5 g/t gold cut-off and an increase of
12% in Inferred resource to 2.49 million contained gold ounces
- The average horizontal width of this resource is 2.57 metres
while the minimum horizontal stope width contemplated in the 2012
PEA mine plan was 1.8 metres, which resulted in a head grade of 8.1
g/t gold
Gold resources by category are summarized in the table
below:
|
Curraghinalt Mineral Resources (as at January 20,
2014) |
Resource Category (Cut-off Grade of 5.0 g/t) |
Million Tonnes |
Grade (g/t Au) |
Contained Gold (ounces) |
Measured |
0.02 |
20.15 |
15,100 |
Indicated |
2.98 |
10.34 |
989,000 |
Measured + Indicated |
3.00 |
10.41 |
1,004,100 |
Inferred |
8.01 |
9.67 |
2,487,700 |
1. |
Resource Estimate prepared by T. Maunula & Associates
Consulting Inc. with an effective date of January 20th, 2014. |
2. |
Mineral Resources which are not Mineral Reserves do not have
demonstrated economic viability. The estimate of Mineral Resources
may be materially affected by environmental, permitting, legal,
marketing, or other relevant issues. The Mineral Resources in this
news release were estimated using the Canadian Institute of Mining,
Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources
and Reserves, Definitions and Guidelines prepared by the CIM
Standing Committee on Reserve Definitions and adopted by CIM
Council. |
3. |
Contained metal figures and totals may differ due to rounding of
figures. |
4. |
The
resource is reported at a cut-off grade of 5.00 g/t gold,
consistent with the 2012 PEA and the 2011 resource. |
5. |
Block
grades were interpolated using Inverse Distance Weighting with a
Power of 3 (IDW3) in Minesight software. |
"Our infill drill program has more than doubled our M&I
ounces at Curraghinalt," commented CEO Patrick F. N. Anderson. "We
used wider resource envelopes which will likely require less
dilution in an eventual mine plan than was required for the
previous narrower resource envelopes. This new modelling approach
simply incorporates more dilution upfront. We have also developed a
superior geological model that will allow us to better target
additional ounces with a modest amount of drilling. Our deposit
remains open in all directions."
The Curraghinalt gold deposit is a lode gold system consisting
of a series of steeply dipping, structurally controlled, high-grade
gold bearing quartz-carbonate veins. The deposit remains open in
all directions. The Mineral Resource estimate incorporates 80,976
metres from 406 drill holes as well as underground channel samples
from existing drifts along the T17, Sheep Dip and No. 1 Vein Zones.
Incorporation of the approximately 29,000 m of drilling completed
since the 2011 Mineral Resource estimate has increased the
geological confidence, with contained Indicated gold resources
increasing from 460,000 ounces to 989,000 ounces. In addition, the
contained Inferred gold resources increased from 2.2 million ounces
to 2.5 million ounces. The Mineral Resource estimate does not
include C-veins except where C-veins were identified in close
proximity to main veins. Future modelling efforts are planned to
address the C-veins.
This mineral resource model is based on a complete
re-interpretation of the vein zones. In total 12 vein zones were
modelled and assay data was composited to 1 m down-hole length.
Mineralization envelopes were defined for each vein zone using a
minimum of two 1 m composites. Overall, 1.9 % of the composites
were capped; capping methodology varied by vein zone and was based
on grade distribution and statistical analysis. Globally the
average horizontal thickness of the interpreted mineralization
envelopes is 2.57 m.
Block model gold grades were estimated in two passes and search
ellipse orientation varied by vein zone. The first pass used a
minimum of one composite and a maximum of eight composites with a
maximum of two composites per drill hole. The search ellipse
dimensions were 200 m X 100 m X 200 m. The second pass used a
minimum of three composites and a maximum of eight composites, with
a maximum of two composites per drill hole. The search ellipse
dimensions were 100 m x 50 m x 100 m.
Appropriate validations were undertaken to ensure that the block
model adequately represents the informing composite data. A bulk
density of 2.85 t/m3 was used for all vein zones.
Resources were classified based on using a minimum of two drill
holes and three composites for grade estimation. Categorization of
mineral resources was done based on the following criteria:
- Measured mineral resources include blocks within 6 metres from
underground development, the nominal spacing (distance to nearest
composite) was 10 m;
- Indicated resources were based on a maximum distance to the
nearest composite of 30 m with a nominal spacing of 20 m; and
- Inferred resources were based on a maximum distance of 125 m to
the nearest composite with a nominal spacing of 72 m.
The Company intends to file a National Instrument 43-101 ("NI
43-101") compliant technical report in respect of the updated
mineral resource estimate on SEDAR and on the Company's website
within 45 days of this news release.
Tim Maunula, P.Geo., President & Principal Geologist, T.
Maunula & Associates Consulting Inc., is the independent
Qualified Person (QP) responsible for the Mineral Resource for the
Curraghinalt Gold Deposit. During his over 30 year career in
exploration, operations and consulting he has completed numerous
resource estimates and served as the Chief Geostatistician for an
international consulting firm. He has experience in the geological
evaluation of gold, base metals, diamonds, uranium, rare earth
elements and iron ore in Canada and internationally in over 20
countries. Within the gold and silver industry, Mr. Maunula has
completed projects for a wide range of clients, including Barrick
Gold Corporation, Goldcorp Inc., Kinross Gold Corporation, Eldorado
Gold Corporation, Teck Resources Limited, Hochschild Mining plc, St
Andrew Goldfields Ltd., Queenston Mining Inc. and Brigus Gold Corp.
His role is typically to perform resource estimates or audit
existing resources, as well as geological modelling and
geostatistical consulting.
About Dalradian Resources Inc.:
Dalradian Resources Inc. is a TSX-listed gold development and
exploration company focused on advancing its high-grade
Curraghinalt gold deposit in Northern Ireland.
Dalradian's 2012 Preliminary Economic Assessment is based on the
November 2011 mineral resource estimate. It reported positive
results for a proposed underground mine at Curraghinalt including
an after-tax IRR of 41.9% and 33.4% and NPV of $467 and $331
million based on an 8% discount rate using a 3 year and 5 year
trailing average gold price of $1378 and $1166 per ounce
respectively. Dalradian's NI 43-101 report, "A Preliminary Economic
Assessment of the Curraghinalt Gold Deposit, Tyrone Project,
Northern Ireland" is dated September 6, 2012, and was prepared by
Mr. B. Terrence Hennessey, P.Geo., Mr. Barnard Foo, P.Eng., Mr.
Bogdan Damjanovic, P.Eng., Mr. Andre Villeneuve, P.Eng., and Mr.
Christopher Jacobs, CEng MIMMM of Micon International Limited, and
is available on SEDAR at www.sedar.com.
Dalradian's Common Shares are listed on the Toronto Stock
Exchange under the symbol "DNA". For further information, please
see www.dalradian.com.
FORWARD-LOOKING INFORMATION
This news release contains "forward-looking information" which
may include, but is not limited to, statements with respect to the
activities, events or developments that the Company expects or
anticipates will or may occur in the future, including, without
limitation, test work and confirming results from work performed to
date, estimation of mineral resources and the realization of the
expected economics of the Curraghinalt Gold Deposit. Often, but not
always, forward-looking statements can be identified by the use of
words and phrases such as "plans," "expects," "is expected,"
"budget," "scheduled," "estimates," "forecasts," "intends,"
"anticipates," or "believes" or variations (including negative
variations) of such words and phrases, or state that certain
actions, events or results "may," "could," "would," "might" or
"will" be taken, occur or be achieved.
Forward-looking statements are based on the opinions and
estimates of management as of the date such statements are made and
are based on various assumptions, such as the use of proceeds being
applied as intended, continued political stability in Northern
Ireland, that permits required for the Company's operations will be
obtained in a timely basis in order to permit the Company to
proceed on schedule with its planned development and exploration
programs, that skilled personnel and contractors will be available
as the Company's operations continue to grow, that the price of
gold will be at levels that render the Company's mineral project
economic, that the Company will be able to continue raising the
necessary capital to finance its operations and realize on mineral
resource estimates, and that the assumptions contained in the PEA
are accurate and complete.
Forward-looking statements involve known and unknown risks,
uncertainties 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,
competitive, political and social uncertainties; the actual results
of current exploration activities; actual results of reclamation
activities; conclusions of economic evaluations; meeting various
expected cost estimates; changes in project parameters as plans
continue to be refined; future prices of metals; possible
variations of mineral grade or recovery rates; failure of plant,
equipment or processes to operate as anticipated; accidents, labour
disputes and other risks of the mining industry; political
instability; delays in obtaining governmental approvals or
financing or in the completion of development or construction
activities, as well as those factors discussed in the section
entitled "Risk Factors" in the Company's annual information
form.
Although the Company has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results to
differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are made as of the date
of this news release and the Company disclaims any obligation to
update any forward-looking statements, whether as a result of new
information, future events or results, except as may be required by
applicable securities 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
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements.
Dalradian Resources Inc.Marla GaleVice President,
Communications+1.416.583.5622investor@dalradian.comwww.dalradian.com