TIDMDALR
Dalradian Recovers 54% More Gold Than Predicted in Resource Model From Two Long-Hole Test Stopes
FOR: DALRADIAN RESOURCES INC.
TSX SYMBOL: DNA
AIM SYMBOL: DALR
September 14, 2016
Dalradian Recovers 54% More Gold Than Predicted in Resource Model From Two Long-Hole Test Stopes
TORONTO, ONTARIO--(Marketwired - Sept. 14, 2016) - Dalradian Resources Inc. (TSX:DNA)(AIM:DALR) ("Dalradian" or the
"Company") announces preliminary results from two test stopes at its Curraghinalt Gold Project in Northern Ireland.
Stope 1 attained an average width of 1.40 metres, with estimated dilution to the designed stope of 29% and removal of an
estimated 439 ounces of gold at a grade of 13.27 g/t from 1,029 tonnes of material. Stope 2 achieved an average width of
1.33 metres, with estimated dilution of 10% to the designed stope and removal of an estimated 973 ounces of gold at a
grade of 24.34 g/t from 1,244 tonnes of material (see Table 2). These results are based on extensive muck sampling. The
quantity of gold in Stope 1 was 36% above the resource model estimation, while Stope 2 exceeded the resource model
estimation by 73% (see Table 1). The test stoping results validate the selection of long-hole open stoping as the
primary mining method at Curraghinalt and demonstrate that narrow mining widths can be achieved using mechanized
methods. These results will contribute to the feasibility study that is nearing completion.
Table 1: Comparison of contained ounces of gold between resource model, Dalradian grade control model and test stoping
results
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Contained gold
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Resource Dalradian Test
model grade control stoping
estimation model results
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Stope 1 (oz) 353 369 439
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Stope 2 (oz) 562 667 973
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Total (oz) 915 1036 1412
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Variation from resource model
estimation (%) 13% 54%
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Table 2: Comparison of stope design vs. actual results
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Average Estimated Estimated Estimated
width Dip Grade Contained Dilution
(m)(i) (degrees) Tonnes (g/t)(ii) Gold Ounces on Design
=---------------------------------------------------------------------------
Stope 1 Design
(iii) 1.1 73 774 14.82 369 N.A.
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Actual
results 1.4 73 1,029 13.27 439 29%
=---------------------------------------------------------------------------
Stope 2 Design 1.3 76 1,128 18.40 667 N.A.
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Actual
results 1.33 76 1,244 24.34 973 10%
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(i)True widths
(ii) Design grade based on definition drilling, face and channel sampling
(Dalradian grade control model); actual results grade based on extensive
muck sampling
(iii) Design width is the minimum width necessary to recover all of the
mineralized material predicted
Patrick F.N. Anderson, Dalradian President & CEO commented,
"This is a great result from our test stoping program. The dilution and the widths achieved as well as the muck grade
returned exceeded expectations. The better results achieved in Stope 2 reflect the experience gained from completing the
first stope. There are only a few outstanding studies left before we can deliver on our feasibility study, which we
expect to release on time this fall."
Key findings of the test stoping for the feasibility study include achievability of:
=- Mechanized long-hole stoping
=- Narrow mining widths of between 1.2 -1.8 metres
=- Stope lengths of 20 metres
=- 15 vertical metres or more between sublevels
The test stoping area is located approximately 60 metres below the surface on the V-75 vein at the deepest point of the
current development (see figures 1, 2, 3 for location; all figures referenced in this news release can be accessed at
http://www.dalradian.com/news-and-events/news-releases/news-releases-details/September-14-2016-News-Release-Figures).
This location was selected as it was readily accessible for pre-production delineation drilling and had an adequate
crown pillar. It also occurs beneath a shallow zone of partial oxidation. It was therefore considered representative of
the deposit as a whole for the purposes of such a trial. Observed ground conditions are excellent, with rock breaking as
expected during blasting and good rock fragmentation evident in the muck (see Figure 6).
The test stopes were adjacent areas along the V-75 vein. Stope 1 was 16 metres long and 15.7 metres high (see Figure 4),
while Stope 2 was 20 metres long and 15.5 metres high (see Figure 5), showing potential for faster mine scheduling using
longer stopes. Orica Mining Services aided in the design of the test stoping program, while CMAC-Thyssen worked
alongside Dalradian staff in drilling and blasting the test stopes. The design of the stopes was based on 100% recovery
of the vein using zipper drilling to reduce the amount of drilling, the powder factor and minimize dilution. The
dilution anticipated by the preliminary geotechnical model was 41% on Stope 1 with a length of 15 m, whereas actual
results were 29% dilution with a 16 m length. For Stope 2, the geotechnical model predicted 39% dilution on a length of
20 m, whereas actual results were 10% dilution (length unchanged).
Split shot, a selective drilling and blasting technique, was also tested. By first blasting and removing the waste and
then blasting the ore, we observed that we can reduce the tonnage from development material sent to the mill by more
than 50%. Split shot is used to minimize dilution and high grade the development ore and also to improve results for the
mechanized cut and fill production method (see Figure 7).
Qualified Persons
Eric Tremblay, P.Eng., Chief Operating Officer, and Greg Hope, MSc, MAIG, Chief Consulting Geologist, Dalradian
Resources, are the Qualified Persons who supervised the preparation of the technical data in this news release.
Underground development along the veins was sampled by the production geologist via chip panel sampling, across the full
width of the face for each round on advance. Distinct geological zones were sampled separately (vein separate from wall
rock), with a general minimum-maximum horizontal sample width of 0.10m to 1m and chip sizes approximating 3-4cm. Four to
five kilograms of material was chipped with a rock hammer from two thirds the height of each face down to the sill, in
volumetric proportion based on relative abundance of mineralization versus gangue. Sample locations were measured from a
surveyed control point. Channel samples were saw-cut into the sills of the 170 and 150 western sublevels along the V-75
vein for comparison with face and drill hole sampling. Samples were submitted to ALS Laboratories in the Republic of
Ireland.
Muck samples were taken continuously throughout the mucking process of each stope, at a frequency of 1 sample taken
every two scoop buckets from the stope (each scoop bucket contains an estimate of 2.6 tonnes of muck). Sampling was done
by the scoop operator, using a shovel to put muck into the individual sample bags, which allowed a representative sample
of both coarse and fine rock fragments to be collected. Sampling was done by the same three individuals over the whole
period of the program for consistency and the Production Geologist performed regular audits of the sampling technique.
Sample bags were numbered in sequence representing the scoop bucket from which they were taken. The sample bags were
tagged and secured by the Production Geologist and samples were submitted to ALS Laboratories in the Republic of
Ireland. 240 muck samples were taken from Stope 1, totalling 1.83 tonnes of ore, or an average of 7.63 kg per sample.
238 muck samples were taken from Stope 2, totalling 1.62 tonnes of ore, or an average of 6.81 kg per sample.
Quality assurance and quality control procedures identified no material issues. Face, channel and muck samples were
analyzed by a 50 gram gold fire assay with either an atomic absorption, or a gravimetric finish for samples initially
reporting over 100.0 g/t gold.
ALS Laboratories is accredited by the Irish National Accreditation Board (INAB) to undertake testing, including for Ores
and Minerals (INAB P9 703), as detailed in the Schedule bearing the Registration Number 173T, in compliance with the
International Standard ISO/IEC 17025:2005 2nd Edition "General Requirements for the Competence of Testing and
Calibration Laboratories".
About Dalradian Resources Inc.
Dalradian Resources Inc. is a gold exploration and development company that is focused on advancing its high-grade
Curraghinalt Gold Project located in Northern Ireland, United Kingdom. The Company is completing a work program in
support of a planning (permitting) application for construction of an operating mine at Curraghinalt. Components of the
program include a feasibility study, an environmental and social impact assessment and underground exploration (960
metres of development with associated test stoping).
In May 2016, Dalradian announced an updated mineral resource estimate for Curraghinalt, including a 109% increase in
gold ounces contained in the Measured and Indicated categories compared with the 2014 resource. The current resource
consists of 2.1 million ounces of contained gold in the Measured and Indicated categories (5.61 million tonnes at 11.61
g/t) and 2.3 million ounces of contained gold in the Inferred category (7.13 million tonnes at 10.06 g/t gold). For
further information, see the NI 43-101 technical report entitled, "Technical Report for the Northern Ireland Gold
Project, Northern Ireland", dated June 17, 2016 and prepared by Dr. Jean-Francois Couture, PGeo (APGO#0197) and Dr. Oy
Leuangthong, PEng (PEO#90563867), both of SRK Consulting (Canada) Inc. and Stacy Freudigmann, PEng (APEGBC #33972) of
JDS Energy & Mining Inc.
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking information" which may include, but is not limited to, statements with
respect to the 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, the realization of mineral resource 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 economics 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 statements 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 such as the continued political stability in Northern Ireland, that permits
required for Dalradian's operations will be obtained on a timely basis in order to permit Dalradian to proceed on
schedule with its planned exploration and development programs, that skilled personnel and contractors will be available
as Dalradian's operations continue to grow, that the price of gold will be at levels that render Dalradian's mineral
project economic, that the Company will be able to continue raising the necessary capital to finance its operations and
realize on mineral resource estimates and current mine plans, that the assumptions contained in the Company's
Preliminary Economic Assessment are accurate and complete, that results from the infill drilling program continue to be
positive, that the mineral resource update is positive, that the results of the Environmental and Social Impact
Assessment and the Feasibility Study will be positive and that a permitting application for mine construction will be
approved.
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; 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. 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 news
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Dalradian Resources Inc.
Marla Gale
Vice President Communications
+1 416 583 5622
investor@dalradian.com
www.dalradian.com
OR
Grant Thornton UK LLP (Nominated Adviser)
Philip Secrett / Richard Tonthat / Harrison Clarke
+44 (0)20 7383 5100
OR
Canaccord Genuity Limited (Broker)
Henry Fitzgerald-O'Connor / Martin Davison
+44 20 7523 8000
Dalradian Resources Inc.
(END) Dow Jones Newswires
September 14, 2016 02:00 ET (06:00 GMT)
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