Dalradian Resources Adds Irish And Norwegian Assets
Edison | Nov 12, 2012 12:19AM ET
We recently visited Dalradian Resources’ (DNA.TO) Curraghinalt gold deposit in Northern Ireland. Since 2010, DNA has drilled 20,562m and it has an NI43-101 compliant resource of 2.7moz. An additional 57 holes totalling 15,677m have recently been drilled and are not included in the 2011 resource estimate. Although c 83% of the resources are in the inferred category, the Curraghinalt mesothermal gold deposit remains open at depth and along strike. DNA’s latest step out holes, located 1,700m along strike, have intersected gold mineralisation grading up to 23.62g/t over 1.5m. With a recent PEA for the Curraghinalt deposit and highly prospective precious and base metals concessions in Norway, DNA is poised to benefit from higher commodity prices.
Gold in the Emerald Isle
The Curraghinalt deposit comprises at least 10 gold-bearing quartz-carbonate veins ranging from 0.3m to more than 2m in width. An initial PEA released on 25 July 2012 indicates an IRR (after tax) of 41.9%, based on 145koz pa with an initial capex of US$192m assuming US$1,378/oz for the 2.7moz resource (83% inferred). There are several high-grade outliers within the additional 15,677m drilled, which will be added to a revised resource estimate in 2013. DNA has a water discharge permit for underground drilling and is working on the planning and permitting for the underground development. DNA expects to have an underground development permit by H113.
Other Dalradian concessions
DNA also has c 1.7m ha over six areas covering three greenstone belts as well as a historic silver mining district in Norway. DNA has conducted a systematic till sampling programme over the Kautekeino greenstone belt and stream sediment surveys from Kongsberg (a historic silver mining district) in southern Norway. Drilling of high priority targets is currently underway.
Valuation: EV/resource of US$41.9/oz
Dalradian currently trades at US$41.9/oz. We believe this reflects, among other things, the 15,677m not included in the current resource estimate as well as the highly prospective properties in Norway, which do not have a compliant resource.
To Read the Entire Report Please Click on the pdf File Below.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.