TORONTO, ONTARIO–(Marketwired – May 8, 2017) – Dalradian Resources Inc. (TSX:DNA)(AIM:DALR) (“Dalradian” or the “Company”) has received positive results from the processing of nearly 14,500 tonnes of mineralized material from its Curraghinalt gold project in Northern Ireland, including 3,211 tonnes from three test stopes. Milling resulted in a positive reconciliation for the test stopes yielding 42% more ounces and a 40% higher grade compared with the Block Model of the 2016 NI 43-101 Mineral Resource Estimate (“Resource Model”). The overall recovery for all of the milled material was 95.9% compared to the expected average recovery of 94.3% in the Feasibility Study (“FS”). (See an image of a Doré bar from the milling at http://www.dalradian.com/news-and-events/news-releases/news-releases-details/May-8-2017-News-Release-Figures)
Approximately 78% of the mineralized material was from development along five different veins during underground exploration in 2015 and 2016. The remainder of the material came from three test stopes on the V75 vein completed during the last half of 2016. The milling of the mineralized material was split into three lots and batch processed with Lot 1 and Lot 2 from development and Lot 3 from test stoping (see tables below for more details).
Eric Tremblay, Dalradian’s Chief Operating Officer, commented: “Ultimately, the true test of any deposit is at the mill. These positive results build on the success of our test stoping, which demonstrated our ability to mine using mechanized methods while minimizing dilution. We have proven that these portions of the deposit contain more gold and a higher grade than estimated in our resource model. We have also shown that Curraghinalt mineralization mills well and that higher recoveries than previously estimated in the FS are achievable.”
Table 1: Test Stoping Reconciliation
| 2016 Resource Model with dilution* |
Milled Results |
Variance of Milled Results to Resource Model |
|
| Tonnage (tonnes) | 3,153 | 3,211 | +2% |
| Gold grade (g/t) | 11.24 | 15.71 | +40% |
| Contained gold (oz) | 1,139 | 1,621 | +42% |
| *Dilution was estimated using the same percentage as was achieved in the test stoping and a grade of 0 g/t for the wall rock (same dilution grade as the Resource Model). | |||
The average recovery for the test stope material was 95.8%, which is 1.5 percentage points higher than the expected average recovery in the FS of 94.3%.
Table 2: Development Results
| Lot 1 | Lot 2 | Total | |
| Tonnage (tonnes) | 2,385 | 8,777 | 11,162 |
| Milled grade (g/t Au) | 7.37 | 7.03 | 7.10 |
| Recovery | 94.0% | 96.6% | 96.0% |
Results from the development material returned grades that were 6.6% higher than predicted by the Resource Model in the development area. The Resource Model predicted approximately 6.66 g/t Au for a development width of 3.0 metres on average compared with the actual recovered grade of 7.10 g/t Au. The average recovery was also 1.7 percentage points higher than predicted in the FS.
Qualified Person
Eric Tremblay, P. Eng., Chief Operating Officer is the Qualified Person who supervised the preparation of the technical data in this news release.
Sampling and assaying was performed on the mineralized material entering the process plant, both by the operator and independently. Dalradian personnel supervised all aspects of the milling test, including transport, sampling and processing.
Samples were submitted to Base Metallurgical Laboratories Ltd. and assayed by Activation Laboratories Ltd. (“Actlabs”), both located in Kamloops, BC, Canada. Quality assurance and quality control procedures identified no material issues and pulp samples were analyzed by fire assay with a gravimetric finish.
About Dalradian Resources Inc.
Dalradian Resources Inc. is a gold exploration and development company that is focused on advancing its high-grade Curraghinalt Gold Project located in Northern Ireland, United Kingdom.
FORWARD LOOKING STATEMENTS
This press release contains “forward looking information” which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its subsidiary 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 statements 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 continued political stability in Northern Ireland, that permits required for Dalradian’s operations will be obtained on a timely basis in order to permit Dalradian to proceed on schedule with its planned exploration and mine development, construction and production programs, 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 Dalradian’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 and mineral reserve estimates and current mine plans, that the assumptions contained in the Company’s Technical Report dated January 25, 2017 are accurate and complete, that the results of the ESIA will be positive and that a permitting application for mine construction will be approved.
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; 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, 2016 dated March 23, 2017 (the “AIF”).
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.
Marla Gale
Vice President Communications
+1 416 583 5600
investor@dalradian.com
www.dalradian.com
Grant Thornton UK LLP (Nominated Adviser)
Philip Secrett / Richard Tonthat
+44 (0)20 7383 5100
Canaccord Genuity Limited (Broker)
Henry Fitzgerald-O’Connor / Martin Davison
+44 (0)20 7523 8000