dalradian corporate presentation sept 10 2013 final
TRANSCRIPT
Patrick F. N. Anderson Chief Execu8ve Officer
Sample from the T17 vein 188 g/t of gold 103 g/t of silver 5.07% of copper
High-‐Grade Gold │ Low-‐Cost │ Low-‐Risk │ Development │ Europe │ September 2013
Forward-‐Looking Informa;on and Qualified Person
This presenta8on contains “forward‑looking informa8on” which may include, but is not limited to, statements with respect to the comple8on of the acquisi8on (the “Acquisi8on”) by the Company from a group of private vendors of approximately 1.3 million hectares of mineral rights over four greenstone belts and a historic silver mining camp in Norway, future financial or opera8ng performance of the Company and its mineral projects, the future price of metals, the es8ma8on of mineral resources, the realiza8on of mineral resource es8mates, the 8ming and amount of es8mated future produc8on, costs of produc8on, capital, opera8ng and explora8on expenditures, costs and 8ming of the development of new deposits, costs and 8ming of future explora8on, requirements for addi8onal capital, government regula8on of mining opera8ons, environmental risks, reclama8on expenses, 8tle disputes or claims and limita8ons of insurance coverage. O^en, but not always, forward‑looking statements can be iden8fied by the use of words and phrases such as “plans,” “expects,” “is expected,” “budget,” “scheduled,” “es8mates,” “forecasts,” “intends,” “an8cipates,” or “believes” or varia8ons (including nega8ve varia8ons) of such words and phrases, or state that certain ac8ons, events or results “may,” “could,” “would,” “might” or “will” be taken, occur or be achieved.
Forward-‐looking statements are based on the opinions and es8mates of management as of the date such statements are made and are based on various assump8ons, such as the con8nued poli8cal stability in Northern Ireland and Norway, that permits required for the Company’s opera8ons will be obtained in a 8mely basis in order to permit the Company to proceed on schedule with its planned explora8on and development programs, that skilled personnel and contractors will be available as the Company’s opera8ons con8nue to grow, that the price of gold will be at levels that render the Company’s mineral projects economic, that the Company will be able to con8nue raising the necessary capital to finance its opera8ons and realize on mineral resource es8mates, and that the assump8ons contained in the PEA are accurate and complete.
Forward‑looking statements involve known and unknown risks, uncertain8es 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, compe88ve, poli8cal and social uncertain8es; the actual results of current and future explora8on ac8vi8es; actual results of reclama8on ac8vi8es; conclusions of economic evalua8ons; changes in project parameters and/or economic assessments as plans con8nue to be refined; future prices of metals; possible varia8ons of mineral grade or recovery rates; the risk that actual costs may exceed es8mated costs; failure of plant, equipment or processes to operate as an8cipated; accidents, labour disputes and other risks of the mining industry; poli8cal instability; delays in obtaining governmental approvals or financing or in the comple8on of development or construc8on ac8vi8es, as well as those factors discussed in the sec8on en8tled “Risk Factors” in the Company’s Annual Informa8on Form.
Although the Company has acempted to iden8fy important factors that could cause actual ac8ons, events or results to differ materially from those described in forward‑looking statements, there may be other factors that cause ac8ons, events or results to differ from those an8cipated, es8mated or intended. Forward‑looking statements contained herein are made as of the date of this presenta8on and the Company disclaims any obliga8on to update any forward‑looking statements, whether as a result of new informa8on, future events or results, except as may be required by applicable securi8es 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 an8cipated in such statements. Accordingly, readers should not place undue reliance on forward‑looking statements.
Some technical data in this presenta8on was taken from the technical report en8tled “A Preliminary Economic Assessment of the Curraghinalt Gold Deposit, Tyrone Project, Northern Ireland” dated September 6, 2012, prepared by 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 Interna8onal Limited (the “PEA”).
Michele L. Cote, MSc., P. Geo., VP Explora8on, Dalradian Resources Inc., is the Qualified Person who supervised the prepara8on of the explora8on technical data in this presenta8on.
2
OVERVIEW AND CORPORATE
Capital Structure
STOCK PRICE
All dollars quoted in $ CAD
TSX: DNA
Shares outstanding: Fully diluted: (August 30, 2013)
89.5 million 97.0 million
Market cap: (September 11, 2013) $71.6 million
Average 30 day volume: (September 3, 2013) 138,326
52 Week Range: $1.90 -‐ $0.48 Insider ownership: (approximate) 7%
Cash balance: (as at June 30, 2013) $12.6 million
Analyst coverage: (targets range from
$1.90-‐$1.30)
Jamie Sprac Steve Parsons
Michael Curran Laurie Cur8s
John Hayes Bart Jaworski
4
$1,400.00
$1,500.00
$1,600.00
$1,700.00
$1,800.00
$1,900.00
$2,000.00
$0.00
$0.50
$1.00
$1.50
$2.00
$0.80 September 11, 2013
DNA
Gold Price
$ CAD
The Board: A Track Record of Discovery, Development & Produc;on
5
PATRICK F. N. ANDERSON CHIEF EXECUTIVE OFFICER Founder & Former CEO of Aurelian Resources
‘08 – PDAC Interna;onal Mineral Discovery
‘08 – Northern Miner Man of the Year
JONATHAN A. RUBENSTEIN Director of Eldorado Gold Corpora;on Director of Detour Gold
Chairman & Director of MAG Silver Corp.
Former Director of Aurelian Resources, Suaon Resources, Canico Resource Corp & Cumberland Resources
RONALD P. GAGEL Former SVP and CFO of FNX Mining
THOMAS J. OBRADOVICH CHAIRMAN Founder & Former CEO of Young-‐Davidson Mines
Former Director of Aurelian Resources
SEAN E. O. ROOSEN Founder & CEO OF Osisko Mining Corpora;on Also Director of Astur Gold
‘06 – Prospector of the Year -‐ Quebec
‘08 – Prospector of the Year -‐ Canada
‘09 – Northern Miner Man of the Year
Founder & CEO OF CONTINENTAL GOLD LIMITED ARI B. SUSSMAN
GRENVILLE THOMAS Founder & Chairman of Strongbow Explora;on Inc. Founder & Former Chairman, President & Director of Aber Resources (Harry Winston Diamond Corp.) now Dominion Diamond
‘99 – PDAC Prospector of the Year
‘01 – Northern Miner Man of the Year
‘09 – Canadian Mining Hall of Fame
Development of a High-‐Grade Deposit in a Low Risk Jurisdic;on
6
§ Gold resource covers a frac8on of known mineraliza8on
§ High-‐grade 2.7M ounce gold resource (all categories)1
− Measured: 0.02 MT grading 21.51 g/t Au for 10,000 contained ounces
− Indicated: 1.11 MT grading 12.84 g/t Au for 460,000 contained ounces
− Inferred: 5.45 MT grading 12.74 g/t Au for 2.23 million contained ounces
§ Posi8ve PEA shows a high margin and low capex producer
NORTHERN IRELAND
1 Refer to press release dated Nov. 30, 2011 en8tled “Dalradian Announces Resource Increase at Curraghinalt” at www.dalradian.com
NORTHERN IRELAND
Metal Produc;on in Ireland & the UK
§ Our flagship asset: Curraghinalt high-‐grade lode gold deposit
§ Excellent regional infrastructure
§ Over 84,000 hectares under license
§ Recent surge in gold sector
8
Gor8n
Omagh
Curraghinalt
BELFAST
NORTHERN IRELAND
Galantas Gold
Conroy Diamonds & Gold
Lonmin
Irish Salt Mining
Underground Salt Mine
Clon;bret
Croagh Patrick Parys Mountain
Gwynfynydd Galmoy Avoca
Pallas Green Silvermines
South Crohy
Curraghinalt Gold Deposit
Gold Base Metals Salt Mine
Allihies Copper Mines
Galantas Gold In produc8on
Scotgold Permiced
Vedanta Resources In produc8on
Boliden In produc8on
IMC Explora;on 354 g/t gold over 1.5m
Lundin In produc8on
Conroy +1M ounce resource
Lisheen
Cononish
Tara
Cavanacaw
Xstrata Feasibility
Gold Mines of Wales U/G grab sample -‐ 263 g/t gold
Clogau
2009 • Project Acquisi8on -‐ December
• 600 k ounce gold resource1
2010 • Increased to 1.5 M ounce gold resource1
• IPO -‐ August
2011 • 7 rigs onsite • Increased to 2.7 M ounce gold resource1
2012 • Robust PEA announced
• New discovery -‐ Alwories
2013 • Underground explora8on development permits submiced
In Three Years We Have:
1 Refer to appendix or press release dated Nov. 30, 2011 en8tled “Dalradian Announces Resource Increase at Curraghinalt” at www.dalradian.com 9
DG3
Gor;n
County Tyrone is Resource Friendly
10
Curraghinalt
Alwories Quarry
kilometres 0 1 2
Curraghinalt
Clear Cut Logging at Gor8n Glen Forest Park
125 Metres
Greencastle Quarry
Cavanacaw Open Pit Approx 30 km SW
Social License
11 Dalradian supports the local MS Society
Awarded in Top 30 Irish-‐North American Companies for 2012 & 2013
“Dalradian makes every effort to maintain good community rela8ons, protect the environment and work with all local people providing employment and training.”
”The company communicates with local land owners on a daily basis and holds public mee8ngs with the wider community in a nearby hall regularly.”
“The employment produced from this venture is cri;cal to local work forces at this ;me. I urge you to grant approval.”
“As someone who has worked with DGL and been on site, I have experienced and been fully impressed with their environmental mi8ga8on measures and health & safety procedures.”
“It makes economic sense to allow DGL to determine whether a future mining project is viable. Not giving planning permission would be to send out a clear signal that Northern Ireland is not open for investment from outside companies.”
“It is incomprehensible that our local youth are having to travel 12,000 miles to work in explora;on and extrac;on of mineral resources when we have poten;al similar opportuni;es a mile away. Every effort should be made to expedite this project safely and effec;vely.”
Epicdocs.planningni.gov.uk. 2011. Public Access. Available at: http://epicdocs.planningni.gov.uk/ShowCaseFile.aspx?appNumber=K/2013/0072/F Accessed: 19 Aug 2013.
CURRAGHINALT
Intercept in hole 11-CT-99 projected up dip to 170m mSL
A 12km Gold Trend
GLACIATED TERRAIN WITH MINIMAL OUTCROP
12 km
1700m
Curraghinalt Deposit
Curraghinalt Trend
13
Curraghinalt Trend Veins in Current Resource Intersected Veins
Historical Findings Geochem Anomaly
Curraghinalt Deposit Resource as at Nov 2011 – Measured: 0.01 Moz Au (0.02MT @ 21.51 g/t) Indicated: 0.46 Moz Au (1.11MT @ 12.84 g/t) Inferred: 2.23 Moz Au (5.45 MT @ 12.74 g/t)
Golan Burn Outcropping veins including 60cm @ 61.43 g/t Au
Alwories Discovery Holes 4.72m @ 14.82 g/t Au 2.22m @ 14.10 g/t Au 1.47m @ 23.6 2g/t Au
400 m Step-out 3.2m @ 5.34 g/t Au
Attagh Burn 2.47m @ 18.99 g/t Au
A
A’
Curraghinalt: A Growing Resource
14
2.22 m @ 14.1 g/t Au
1.47 m @ 23.6 g/t Au
Alwories
3.6 km
Curraghinalt
2007 Resource
2010 Resource
2011 Resource
2012 Interpreted vein extents
Drilling post 2011 Resource
4.72 m @ 14.82 g/t Au
0m asl
-‐500m asl
-‐1000m asl
257500E
258000E
258500E
259000E
259500E
A A’
3.20 m @ 5.34 g/t Au
2.47 m @ 5.19 g/t Au
8.34 m @ 5.84 g/t Au
PRELIMINARY ECONOMIC ASSESSMENT
Preliminary Economic Assessment
16 16
KEY PEA DATA* 3 YEAR TRAILING
AVERAGE GOLD PRICE: $1378/ounce
5 YEAR TRAILING AVERAGE GOLD PRICE:
$1,166/ounce
NPV with 8% discount rate (A^er-‐tax) $467 million $331 million
IRR (A^er-‐tax) 41.9% 33.4%
Average Annual Produc8on 145,000 ounces/year
Processing Rate 1,700 tonnes/day
Life of Mine 15 years
Ini8al Capex ($38M con8ngency) $192 million
Cash Costs $532/ounce or $125/tonne
Diluted Grade 8.1 g/t Au
Gold Recovery 92%
Payback 2 years
All dollars quoted in $ USD unless stated otherwise
PEA results released on July 25, 2012. The PEA is preliminary in nature. It includes inferred mineral resources that are considered too specula8ve geologically to have the economic considera8ons applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the results of the PEA will be realized.
* Prepared by Micon Interna8onal Limited
DEVELOPMENT
Curraghinalt Adit
18
Working off exis8ng infrastructure, we plan to begin
advancing on the veins
Underground Explora;on Development
Proposed Access Ramp to Sub-‐Level
Proposed Tunnel Extensions at Sub-‐Level
Proposed Tunnel Extensions at 170 M Level
Exis;ng Explora;on Tunnel
T17
No. 1
106 -‐ 16
Bend
Crow
Road
Sheep Dip
Mullan
§ Dalradian has requested planning permission to complete approximately 2,000 m of underground explora8on development
§ Extend the exis8ng adit by approximately 260 m to intersect all known veins;
§ Dri^ along several of the known veins & demonstrate vein con8nuity;
§ Install a ramp to access 150 m level, approximately 20 m below exis8ng workings;
§ Removal of large bulk sample for metallurgical test work.
19
20
Conceptual Sublevel Development
2,000 m Planned with the Goal to:
• Demonstrate con8nuity of thickness and grade of mineralized veins. • Convert addi8onal resources to Measured and Indicated.
• Test mining and backfill methods. • Inves8gate geotechnical and hydrogeological condi8ons. • Produce a bulk sample for metallurgical test work. • Test the permiwng process.
ROAD
SHEEPD
IP
MULLAN
T17 No. 1
106_16
BEND
CROW
EXISTING DEVELOPMENT PLANNED DEVELOPMENT
PLANNED DEVELOPMENT
PLANNED STOPING
20
Where We’re Headed
21
§ Deposit re-‐evalua8on Ongoing § Drill results finalized Ongoing § Historic sampling program comple8on Ongoing § Historic sampling interpreta8on & results Ongoing § EIA Requirement Determina8on Not Required § Underground permit Ongoing § Underground Program Planning Ongoing
NORTHERN IRELAND
✓
Next Stop
Underground Tour of Curraghinalt Deposit
The European Explorer
Patrick F. N. Anderson Chief Executive Officer
Investor Relations
Shae-Lynn Mathers Director, Investor Relations
[email protected] 416.583.5622
Trading Symbol:
DNA on TSX DRLDF on OTCQX
Corporate Office:
Dalradian Resources Inc. 155 Wellington Street West
Suite 2920 Toronto, Ontario
Canada M5V 3H1
www.dalradian.com
Oslo
Kongsberg
SOUTHERN NORWAY
NORWAY
FINLAND SWEDEN
RUSSIA
Land Posi;on
Northern Norway § Four concessions over three greenstone belts and a
basement window § 10 gold-‐in-‐+ll anomalies iden+fied
Southern Norway § Kongsberg concession hos8ng an historic silver mining district
§ Five silver targets iden+fied
Rombak
NORTHERN NORWAY
Greenstone Belts
Volcanic Belts & Metasediments
Kautokeino Kiwlä Sakawlampi
Bidjovagge
Pasvik
Karasjok
Pechenga NORWAY
FINLAND SWEDEN
RUSSIA
24
43-‐101 Resource
25
§ High-‐grade 1.5M ounce gold resource (all categories)1
− Indicated: 0.95 MT grading 13.24 g/t Au for 400,000 contained ounces
− Inferred: 2.46 MT grading 14.64 g/t Au for 1.16 million contained ounces
2010 RESOURCE
Northern Ireland
Norway
1 Refer to press release dated Nov. 30, 2011 en8tled “Dalradian Announces Resource Increase at Curraghinalt” at www.dalradian.com
2011 RESOURCE § High-‐grade 2.7M ounce gold resource
(all categories)1
− Measured: 0.02 MT grading 21.51 g/t Au for 10,000 contained ounces
− Indicated: 1.11 MT grading 12.84 g/t Au for 460,000 contained ounces
− Inferred: 5.45 MT grading 12.74 g/t Au for 2.23 million contained ounces
2007 RESOURCE § High-‐grade 600 k ounce gold resource
(all categories)1
− Indicated: 0.57 MT grading 13.95 g/t Au for 250,000 contained ounces
− Inferred: 0.64 MT grading 17.15 g/t Au for 350,000 contained ounces