Name of the Project
Curraghinalt gold project.

Location
Northern Ireland.

Client
Dalradian Resources.

Project Description
The project has proven and probable reserves of 1.44-million ounces of gold and 660 000 oz of silver, held in 5.24-million tonnes grading 8.54 g/t gold and 3.9 g/t silver. Measured and indicated resources are estimated at 2.1-million ounces of gold contained in 5.61-million tonnes grading 11.61 g/t gold. The feasibility study has excluded the significant inferred resource of 2.31-million ounces of gold contained in a further 7.13-million tonnes grading 10.06 g/t gold.

The feasibility study has highlighted a project with high expected profitability and returns, as well as a strong economic case for advancing it to development.

The mine will be operated using automation, mechanised underground mining methods and best-in-class processing. The dry-stack tailings from the process will not come into contact with cyanide.

Curraghinalt is expected to be accessed through the existing exploration adit and a new ramp to be developed adjacent to the proposed plant site.

The new ramp will serve as the primary access to the mine for personnel and materials, and the haulage of mineralised materials to the plant site.

Yearly ore production of up to 511 000 t is planned from a combination of a primary longitudinal longhole retreat, with some cut-and-fill mining methods and development along the veins.

Jobs to be Created
Direct employment is estimated at 300. Once the mine is in operation, it is expected to employ at least 350 people in permanent positions.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 5% discount rate, of $301-million and an internal rate of return of 24.4% using an assumed gold price of $1 250/oz. Payback is estimated at four years.

Value
The project has an initial capital cost, including contingency, of $192-million.

Duration
The project is expected to take 18 to 24 months to build.

Latest Developments
Dalradian Resources has submitted a mine planning permit application to Northern Ireland’s Infrastructure department (DfI), reflecting a significant milestone in the project’s evolution from a small deposit to a world-class mine.

The application will follow the planning review process, which comprises validating the planning application; a first round of consultation by DfI with the public and statutory consultees, including regulatory agencies and DfI consultants; a request for further environmental information, if necessary; further consultation by DfI with the public and statutory consultees; the DfI officers' recommendation to the Minister for Infrastructure/Permanent Secretary; and a decision.

The first part of the review process is expected to take up to a year and, given the scale of the project, it is expected that a public local inquiry will be held before a final decision can be made – a process that could also take up to a year to complete.

The planning application will be followed by two key developments in 2018 – the release of an updated mineral resource statement in the first quarter and a revised feasibility study in the second quarter.

The new mineral resource statement will be based on the drilling completed in 2017 and the feasibility study will incorporate the details of an expected updated mineral resource, revised modelling methodology and sorting technology.

Dalradian recently completed a sensitivity study on two major veins in the resource model, where a new approach to modelling resulted in a 32% increase in estimated minable ounces.

It has also secured an extra C$78.25-million from major North American finance companies Orion Mine Finance and Osisko Gold Royalties to fund the project.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Dalradian Resources VP: communications and corporate secretary Marla Gale, tel +1 416 583 5600 or email info@dalradian.com.