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 │ Low-‐Risk │ Explora8on │ Development │ Europe │ July 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 1.7 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 approvals from the Toronto Stock Exchange and the Norwegian Directorate of Mining will be obtained in respect of the Acquisi8on, 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 drilling 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 project economic, or that the Company will be able to con8nue raising the necessary capital to finance its opera8ons and realize on mineral resource es8mates.
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 explora8on ac8vi8es; actual results of reclama8on ac8vi8es; conclusions of economic evalua8ons; changes in project parameters as plans con8nue to be refined; future prices of metals; possible varia8ons of ore grade or recovery rates; 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 aeempted 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 updated Mineral Resource Es8mate for the Curraghinalt Gold Deposit Tyrone Project, County Tyrone and County Londonderry, Northern Ireland” dated January 10, 2012, prepared by B. Terrence Hennessey, P.Geo., and Dibya Kan8 Mukhopadhyay, M.Sc., MAusIMM, of Micon Interna8onal Limited (the “Technical Report”).
John McCombe, PEng, Chief Opera8ng Officer, Dalradian Resources Inc., is the Qualified Person who supervised the prepara8on of the technical data in this presenta8on.
2
OVERVIEW AND CORPORATE
Capital Structure
STOCK PRICE
All dollars quoted in $ CAD
TSX, OTCQX: DNA, DRLDF
Shares outstanding: Fully diluted : (May 7, 2013)
89.5 million 97.0 million
Market cap: (June 26, 2013) $51.0 million
Average volume: (30 day) 51,283
52 Week Range: $1.90 -‐ $0.58 Insider ownership: (approximate) 6%
Cash balance: (as at March 31, 2013) $16.5 million
Analyst coverage: (targets range from
$3.00-‐$1.90)
Jamie Sprae Steve Parsons
Craig Stanley 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
$0.57 June 26, 2013
DNA
Gold Price
The Board: A Track Record of Discovery and Development
5
PATRICK F. N. ANDERSON CHIEF EXECUTIVE OFFICER Former Founder & CEO of Aurelian Resources
JONATHAN A. RUBENSTEIN Director of Eldorado Gold Corpora;on Director of Detour Gold
Chairman & Director of MAG Silver Corp.
Former Director of Aurelian Resources, SuZon Resources, Canico Resource Corp & Cumberland Resources RONALD P. GAGEL
Former SVP and CFO of FNX Mining
THOMAS J. OBRADOVICH CHAIRMAN Chairman of Lago Dourado Minerals
Former CEO of Young-‐Davidson Mines
Former Director of Aurelian Resources
SEAN E. O. ROOSEN CEO OF OSISKO MINING CORPORATION Also Director of Astur Gold
CEO OF CONTINENTAL GOLD LIMITED ARI B. SUSSMAN
GRENVILLE THOMAS CHIEF FINANCIAL OFFICER Chairman of Strongbow Explora;on Inc.
Former Chairman, President & Director of Aber Resources (Harry Winston Diamond Corp.) now Dominion Diamond
NORWAY
High-‐Grade Targets in Low Risk Jurisdic;ons
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 us a high margin and low capex producer
§ 1.3 M hectares of explora8on permits § En8re greenstone belts § Over 15 precious metals targets iden8fied
in 2012 season
NORTHERN IRELAND
Northern Ireland
Norway
1 Refer to press release dated Nov. 30, 2011 en8tled “Dalradian Announces Resource Increase at Curraghinalt” at www.dalradian.com
NORTHERN IRELAND
Northern Ireland
§ 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 Cro_y
Curraghinalt Gold Deposit
Gold Base Metals Salt Mine
Allihies Copper Mines
Galantas Gold Permieed in 2007
Scotgold Permieed in 2012
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
Since Incep;on…
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 permit submieed and expected by Q4
1 Refer to appendix or press release dated Nov. 30, 2011 en8tled “Dalradian Announces Resource Increase at Curraghinalt” at www.dalradian.com
DG3
Gor;n
Permibng is Possible
10
Curraghinalt
Alwories Quarry
kilometres 0 1 2
Curraghinalt
Clear Cut Logging at Gor8n Glen Forest Park
125 Metres
Cavanacaw Open Pit Approx 30 km SW
Greencastle Quarry
Social License
11
Local sports team support
Launch of Dalradian fundraising and corporate support campaign for the MS Society
130 leeers and 2 pe88ons sent in support of the project during the underground development permivng process
Local sports team support
Awarded in Top 30 Irish-‐North American Companies for 2012 & 2013
Training & PPE is provided to local land owners to ensure they work safely
CURRAGHINALT
Intercept in hole 11-CT-99 projected up dip to 170m mSL
Not a Trend but a District
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
Broader Mineralized Zones
14
CROSS-‐SECTION A – A’
Adit
0 200 400
METRES
A Growing Resource: 600,000 Ounces to 2.7 million Ounces
15
2007 Resource
2010 Resource
2011 Resource
2012 Interpreta8ve vein extents
Drilling post 2011 Resource
Curraghinalt: A Growing Resource
16
2.47 m @ 5.19 g/t
0.10 m @ 21.28 g/t
0.44 m @ 11.68 g/t
0.60 m @ 6.02 g/t 0.43m @ 14.57 g/t
0.65 m @ 15.04 g/t
0.38 m @ 3.73 g/t
2.22 m @ 14.1 g/t
4.72 m @ 14.82 g/t
1.47 m @ 23.6 g/t
Curraghinalt
Alwories Attagh Burn
3.6 km
2007 Resource
2010 Resource
2011 Resource
2012 Interpreted vein extents
Drilling post 2011 Resource
Golan Burn to Curraghinalt
17
6.5 km
2007 Resource
2010 Resource
2011 Resource
2012 Interpreted vein extents
Drilling post 2011 Resource
Curraghinalt
Measured: 0.01 Moz Au @ 21.51 g/t)
Indicated : 0.46 Moz Au @ 12.84 g/t)
Inferred: 2.23 Moz Au @ 12.74 g/t)
§ Open in all direc8ons except up
18
CURRAGHINALT RESOURCE ESTIMATE
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
2007 (Pre-‐DNA)
2010 DNA Year 1
2011 DNA Year 2
2012 DNA Year 3
Millions of Ounces Metres Drilled
27 years of work 3 years of work
§ 1986-‐1987 resources es8mates are historic non 43-‐101 compliant resources
§ 2003 to 2011 resource es8mates are reported 43-‐101 compliant
Images presented for illustra8ve purposes only
Curraghinalt Resource
RESOURCE AS AT NOV 2011:
?
PRELIMINARY ECONOMIC ASSESSMENT
Preliminary Economic Assessment
20 20
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
PEA: Mining
21 21
21
Longhole Mining with Ramp Access & Truck Haulage: § Local availability of experienced longhole miners § More dilu8ve than cut and fill but less expensive and
easier to manage § 1.8 metres mined width (80% dilu8on on resource) § 20 metre sub level spacing § Less than 10 working faces at any one 8me
PROJECT PRODUCTION RATE
(TPD) MINING COST (US$/T MILLED) COMMENTS
Curraghinalt (Dalradian, N. Ireland)
1,700 (planned)
$76.50 (US$/t mined) (PEA es8mate) 1.8 m stope widths
Bulyanhulu (African Barrick, Tanzania) 3,300 $156.00 Narrow, steeply-‐dipping veins
Daisy Milano (Silver Lake Resources, W. Australia)
540 Cash Costs of $660/oz Stope widths down to 1 m
Lawlers (Barrick, Australia) 2,200 $30.06
(2003) Shallow dipping veins, 2-‐6 m thick
Development tunneling at Bulyanhulu Gold Mine
UNDERGROUND EXPLORATION DEVELOPMENT
Background
§ Exis8ng explora8on tunnel permieed in 1987 and subsequently constructed by Ulster Minerals in the late 80s, with works consis8ng of:
– A 410 m adit (3.0 x 2.5 m) and two dri^s totalling 290 m (s8ll accessible, stable and in use)
– Ancillary buildings (now removed)
– Onsite stockpiles of surplus rock (since re-‐graded into exis8ng slope contours)
– Quan88es of mineralised rock transported to offsite tes8ng facili8es
§ DGL acquired the Curraghinalt Project in late 2009 and commenced surface explora8on drilling in 2010
§ DGL upgraded the resource es8mates in Q2/2011 and again in Q4/2011
– Current resource stands at 2.7 million oz. gold (all categories)
§ DGL completed Preliminary Economic Assessment (PEA) in Q3/2012
§ Next step is to conduct underground explora8on development
23
Curraghinalt Adit
24
Underground Explora;on 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.
§ Dalradian is reques8ng planning permission to complete approximately 2,000 m of underground explora8on development
T17
No. 1
106-‐16
Bend
Crow
Road
Sheep Dip
Mullan
Proposed Access Ramp to Sub-‐Level
Proposed Tunnel Extensions at Sub-‐Level
Proposed Tunnel Extensions at 170 M Level
Exis;ng Explora;on Tunnel
26
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 permivng process.
ROAD
SHEEPD
IP
MULLAN
T17 No. 1
106_16
BEND
CROW
EXISTING DEVELOPMENT PLANNED DEVELOPMENT
PLANNED DEVELOPMENT
PLANNED STOPING
Surface Facili;es
Proposed Works – Surface Facili;es:
§ Designated on-‐site storage area for surplus rock
§ Temporary water treatment facility
§ Temporary on-‐site explosives store
§ Ancillary facili8es: office, welfare, services, parking, etc.
§ Project will be constructed on surface lands controlled by DGL
27
Permibng Process
§ Consulta8on with The Crown Estate and DETI § Consulta8on with other stakeholders & regulators § Planning permission (DoE Planning Service – Strategic Planning Division) § Explosives storage consent, revision to the exis8ng discharge consent; water abstrac8on licence;
waste management (NIEA)
§ Explosives store consent (DoJ / DoE)
28
Pre-‐ consulta;on
Revisions to Exis;ng Permits
Mobiliza;on and Site Prep.
2013 2014 Q1 Q2 Q3 Q4 Q1
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR
Planning Process
Explosives Storage Consent
Contractor Selec;on
UG Development
EIA not required
Planning Permission
Judiciary Review Period
Where We’re Headed
29
§ Deposit re-‐evalua8on Ongoing § Drill results finalized Q3 2013 § Historic sampling program comple8on Q3 2013 § Historic sampling interpreta8on & results Q4 2013 § EIA Requirement Determina8on Not Required § Underground permit Q4 2013 § Underground work commences Q1 2014 § We are posi8oned § Baseline studies underway
NORTHERN IRELAND
NORWAY
✓
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