TIDMDALR TIDMDALR
TORONTO, May 10, 2018 (GLOBE NEWSWIRE) -- Dalradian Resources Inc.
(TSX:DNA) (AIM:DALR) ("Dalradian" or the "Company") announces an updated
mineral resource statement on the Curraghinalt gold deposit in Northern
Ireland ("Mineral Resource Statement"), including a 46% increase in gold
ounces contained in the Measured and Indicated ("M&I") categories and a
32% increase in Inferred gold ounces compared to the 2016 resource. This
updated mineral resource statement, along with an improved geotechnical
study and ore sorting testwork, will support an updated feasibility
study ("FS") expected to be delivered in Q3 of 2018. Dalradian also
announced that Greg Hope has been appointed VP Exploration after 3 years
with the Company as Exploration and Geology Manager.
The mineral resources by category are summarized in the table below:
Mineral Resource Statement, Curraghinalt Gold Project,
Northern Ireland,
SRK Consulting (Canada) Inc., May 10(th) , 2018
Resource Category Million Grade Contained Gold
(Cut-off Grade of 5.0 g/t) Tonnes (g/t Au) (ounces)
Measured 0.04 26.04 33,000
Indicated 6.31 14.95 3,033,000
Measured + Indicated 6.35 15.02 3,066,000
Inferred 7.72 12.24 3,038,000
1. Mineral Resource Statement prepared by SRK Consulting
(Canada) Inc. in accordance with NI 43-101 with an
effective date of May 10, 2018.
2. Mineral Resources are not Mineral Reserves and have
not demonstrated economic viability. The estimate
of Mineral Resources may be materially affected by
environmental, permitting, legal, marketing, or other
relevant issues. The Mineral Resources have been classified
according to the CIM Definition Standards for Mineral
Resources and Mineral Reserves (May 2014).
3. All figures have been rounded to reflect the relative
accuracy of the estimates.
4. The mineral resources are reported at a cut-off grade
of 5.0 g/t gold, based on a gold price of US$1,200
per ounce and 95% gold recovery.
Patrick F.N. Anderson, Dalradian's President and CEO, commented:
"Yet again, with this resource update, we demonstrate that at
Curraghinalt we have a robust, high grade gold system. A system which
remains open in all directions. This update identified 5 new veins and
increased the strike length of the deposit by 1 kilometre for a total of
2.3 kilometres. This resource will form the basis for a new feasibility
study which we expect to release in the autumn."
Eric Tremblay, Dalradian's Chief Operating Officer, stated:
"Our starting point for the new FS is total M&I 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. Other work that has been completed or is
underway for the FS update is expected to result in higher annual
production and lower costs because of the increased use of mechanized
mining. Our test stoping has proven that we are able to minimize
dilution in mining these high grade, narrow veins."
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 2.3km strike
length. The deposit remains open in all directions. The Mineral Resource
Statement incorporates additional information from 145 drill holes
(46,487 metres), as well as 110 underground channel samples, 57 face
samples and 14 sludge samples from new and existing drifts along the
T17, 106-16, V-75, Slap Shot and No. 1 Vein Zones. The Measured mineral
resources are higher grade than the Indicated, which is higher grade
than the Inferred mineral resources. The infill drilling was successful
in increasing the geological confidence of the mineral resources, with
Measured and Indicated mineral resources increasing from 2.1 million
ounces to 3.1 million ounces.
The Mineral Resource model does not consider the C-veins, unless within
modelled D-vein intervals, or any other potential gold contribution from
surrounding materials. Vein wireframes were modelled on the extents of
logged D veins, and snapped to assays irrespective of gold grades. The
re-interpretation of the vein wireframes directly from assays, and not
0.5-metre composites, has resulted in an increase in the average grade
of each vein with a reduction in vein thickness. Modeled vein wireframes
delineate in-situ gold grade and do not consider a minimum mining width
or likely planned mining dilution, which will likely be considered
during the conversion of mineral resources to mineral reserves. The
wireframe model includes 5 new veins (Slap Shot Splay 1, Raven, Harp,
Finn and Foyle) not previously modelled (see model images at
http://www.dalradian.com/investor-centre/news-releases/news-releases-details/May-10-2018-News-Release-Figures/).
Only 3 of the 5 new veins contribute ounces to the Mineral Resource
Statement because there is insufficient data on two of the veins (Finn
and Foyle) to reliably estimate grade within them. Additional drilling
in the area of the new veins is expected to improve delineation and
potentially add more ounces.
In total, 21 veins were modelled on the extents of logged gold
mineralized shear veins (D veins), and snapped to assays irrespective of
gold grades. Other vein types such as extensional veins (C veins) can
also be auriferous but were only included when immediately adjacent to,
or within a modelled D vein interval. The previous resource model vein
wireframes were snapped to 0.5-metre fixed length composites, composited
from drill hole collar to toe, prior to modelling the veins. The new
vein wireframes therefore represent true vein width, without dilution
due to compositing. Drill hole assay data were composited to 0.3 m
down-hole length within the updated vein wireframes. Overall, 4% of the
composites were capped. Capping varied by vein and by data type, and was
based on grade distribution and statistical analysis. Separate variogram
models were fitted for gold in the 16 biggest veins, with ranges up to
95x60x2 metres.
A block model with parent cell sizes of 5x5x5 metres was chosen, with
subcells at 0.5 metre resolution in the plane of the vein and 0.25
metres perpendicular to it. Subcells were assigned the same grade as the
parent cell. Block model gold grades were estimated using ordinary
kriging, informed by composite data and three estimation runs with
progressively relaxed search ellipsoids and data requirements. The first
pass required between 5 to 12 composites, with search dimensions
equivalent to the full variogram range corresponding to each vein and
oriented parallel to the vein. The second pass required between 4 to 15
composites, but permitted a search up to two times the variogram range.
The final pass required between 2 to 15 composites within a search radii
up to six times the variogram range, with the aim to populate blocks in
sparsely sampled areas. A stricter capping threshold, affecting 19% of
the core composites, was used for the third estimation pass to better
control the impact of high grade composites in areas with low data
density. In all passes, no more than 3 composites from one drill hole
are permitted. Each domain was estimated using a hard boundary approach
that considers only the composites from that domain. The influence of
underground face samples was limited to within a 10 metre radii.
Appropriate validations were undertaken to ensure that the block model
adequately represents the informing drilling data. Vein block volumes
were converted into tonnage using specific gravity values estimated
using ordinary kriging. Estimated vein specific gravity varies from 2.76
to 2.91, with an overall average of 2.81.
The block model was classified using the following criteria:
-- The Measured category includes blocks located within 10 metres from
underground development;
-- The Indicated category includes blocks estimated within the variogram
range, by a minimum of 2 drill holes, but more often with at least 3
drill holes; and
-- The Inferred category includes all other blocks estimated within a vein
wireframe with at least 3 drill holes located within 150 metres and not
previously classified as Measured or Indicated.
The Company intends to file an updated technical report pursuant to
National Instrument 43-101 to support the updated Mineral Resource
Statement on SEDAR and on the Company's website within 45 days of this
news release.
VP Exploration
Mr. Hope is a geologist with over 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. He joined Dalradian as
the Exploration and Geology Manager in 2015 and was appointed Vice
President, Exploration in May 2018. Mr. Hope is a former Manager-West
Africa for RSG-Global (now Coffey Mining), where he was involved in due
diligence studies, QAQC audits as well as the design and implementation
of large exploration programmes throughout Africa. He has a BSc from the
University of Otago New Zealand and an MSc in exploration geology from
Rhodes University South Africa. He is a member of the Australian
Institute of Geoscientists (MAIG).
Qualified Persons
The Mineral Resource Statement was prepared in accordance with NI 43-101
by Dr. Oy Leuangthong, PhD, PEng (PEO#90563867), and Dominic Chartier,
PGeo (APGO#2775), both full time employees of SRK Consulting (Canada)
Inc. and independent Qualified Persons as defined by National Instrument
43-101. The Qualified Persons have read and approved the information
contained in this press release.
About Dalradian Resources Inc.
Dalradian Resources Inc. is a mineral exploration and development
company that is focused on advancing its high-grade Curraghinalt Gold
Project located in Northern Ireland, United Kingdom. The Curraghinalt
Project is in permitting, with exploration ongoing to build on the
positive feasibility study released in January 2017.
For more information:
Marla Gale
Vice President Communications
+1 416 583 5600
investor@dalradian.com
Grant Thornton UK LLP (Nominated Adviser)
Philip Secrett / Richard Tonthat
+44 (0)20 7383 5100
Numis Securities Limited (Broker)
John Prior / James Black / Paul Gillam
+44 (0)20 7260 1000
FORWARD LOOKING STATEMENTS
This press release contains "forward-looking information" which may
include, but is not limited to, statements with respect to the delivery
of an updated feasibility study and an updated technical report, future
financial or operating performance of the Company and its subsidiaries
and its mineral project, the future price of metals, test work and
confirming results from work performed to date, the estimation of
mineral resources and mineral reserves, the realization of mineral
resource and mineral reserve estimates, the timing and amount of
estimated future production, costs of production, capital, operating and
exploration expenditures, costs and timing of the development of new
deposits, costs and timing of future exploration, requirements for
additional capital, government regulation of mining operations,
environmental risks, reclamation expenses, title disputes or claims,
limitations of insurance coverage, the timing and possible outcome of
pending regulatory matters and the realization of the expected
production, economics and mine life 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 that management believes are reasonable, such as
continued political stability in Northern Ireland, that permits required
for Dalradian's operations will be obtained in a timely basis in order
to permit Dalradian to proceed on schedule with its planned exploration
and mine development, construction and production programs, that a
permitting application for mine construction will be approved, that
skilled personnel and contractors will be available as Dalradian's
operations commence and continue to grow towards production and mining
operations, that the price of gold will be at levels that render the
Dalradian's mineral project economic, and that the Company will be able
to continue raising the necessary capital to finance its operations and
realize on mineral resource and mineral reserve estimates and current
mine plans.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Dalradian 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; legal challenges to permits or permitting applications;
the actual results of current and future exploration activities; the
actual results of reclamation activities; conclusions of economic
evaluations; meeting various expected cost estimates; changes in project
parameters and/or economic assessments as plans continue to be refined;
future prices of metals; possible variations of mineral grade or
recovery rates; the risk that actual costs may exceed estimated costs;
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 for the year ended
December 31, 2017 dated March 15, 2018.
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 press 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.
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Dalradian Resources Inc. via Globenewswire
http://www.dalradian.com/
(END) Dow Jones Newswires
May 10, 2018 02:17 ET (06:17 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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