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
10th,
2018 |
Resource Category
(Cut-off Grade of 5.0 g/t) |
Million
Tonnes |
Grade
(g/t Au) |
Contained Gold
(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
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