Dalradian Resources Inc. Dalradian Announces A 46% Increase In Measured & Indicated Gold Ounces And A 32% Increase In Inferre...

 
TIDMDALR TIDMDALR 
 
 
   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 10(th) , 2018 
Resource Category                  Million          Grade               Contained Gold 
 (Cut-off Grade of 5.0 g/t)         Tonnes         (g/t Au)                 (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 
 
   [phone] 
 
   [e-mail] 
 
   Grant Thornton UK LLP (Nominated Adviser) 
 
   Philip Secrett / Richard Tonthat 
 
   [phone] 
 
   Numis Securities Limited (Broker) 
 
   John Prior / James Black / Paul Gillam 
 
   [phone] 
 
   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 
 
 
  http://www.dalradian.com/ 
 

(END) Dow Jones Newswires

May 10, 2018 02:17 ET (06:17 GMT)

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