Dalradian Reports Update from C-Vein Sampling at the Curraghinalt Gold Deposit in Northern Ireland: 0.76 m of 33.6 g/t Gold Becomes 7.21 m of 7.58 g/t Gold
TORONTO, ONTARIO -- (Marketwired) -- 04/23/13 -- Dalradian Resources Inc. ("Dalradian" or the "Company") (TSX: DNA)(OTCQX: DRLDF) is pleased to provide an update on its on-going evaluation of a previously overlooked vein set (the "C-veins") at the Curraghinalt gold deposit in Northern Ireland. While work is ongoing to assess the potential impact of the C-veins on the existing resource, early results are very encouraging. A previously reported intercept in Hole 12-CT-170 of 0.76 metres grading 33.60 g/t of gold (PR Feb 13), has been expanded considerably to 7.21 metres grading 7.58 g/t of gold by incorporating the adjacent C-vein material.
"Although final results from this study are expected to take several more months, initial findings show the C-veins may have a positive influence on future resource estimates, at least in key portions of the deposit," says Patrick F.N. Anderson, Dalradian's CEO. "It is becoming apparent we need to think of the deposit in terms of broader mineralized zones rather than discrete narrow veins."
Until recently, the main resource veins (D-veins) at Curraghinalt have been thought of as discrete, individual units hosted in barren wall rock and historically the system was sampled on this basis, with little or no attention paid to the material outside of the main vein intercepts. The July 2012 Preliminary Economic Assessment, for instance, incorporates more than 2.5 million tons of material that falls outside of the main veins and was calculated to contain 0 g/t of gold.
Recent and ongoing work recognizes that this discrete single vein interpretation is overly simplistic. New results from sampling over broader intervals on existing and historical core support the idea that mineralization at Curraghinalt is hosted in a suite of sub-parallel Vein Zones comprising one or more shear veins (the historically recognized main veins) and Extension Veinlets (C-veins). By interpreting the mineralization into wider Vein Zones, the historical D-vein mineralization would still remain as the key or anchoring component, however, the wider zones of mineralization and structures will increase confidence in correlating mineralization on cross-section and from section to section. The result both advances our understanding of the geometry of the mineralization, and provides an improvement on the geological model previously utilized in resource estimation.
Ongoing logging and sampling of drillholes from key cross-sections, using both the current drill program and the historical core, will provide data to support a re-interpretation of the Vein Zones, leading to an updated resource estimate in Q4 of 2013. The updated resource will include approximately 35,000 m of new drilling and a portion of the historical core which was previously un-sampled.
Preliminary C-Vein Data
While the evaluation of the C-veins is expected to continue through to at least mid-2013, preliminary data from three holes shows that the C-veins are capable of contributing to wider mineralized intercepts than would previously have been defined by the main veins (D-veins) alone. The locations of the three holes are shown in Figure 1.
Hole 11-CT-94
Hole 11-CT-94 was the first of the historical holes selected for resampling, as it intersects seven of the main D-veins as well as numerous footwall veins, some of which are now recognized as C-veins. Previous sampling of 11-CT-94 had 27 assays reporting greater than 1 g/t of gold. As a result of re-logging and additional sampling, another fifty-five assays reported greater than 1 g/t of gold, with ten of those assaying greater than 10 g/t of gold (Figure 2).
Hole 12-CT-170
Hole 12-CT-170, had previously reported 0.76 m grading 33.60 g/t of gold (PR Feb 13). Additional results incorporating C-vein material have expanded that zone considerably to 7.21 m grading 7.58 g/t of gold. This interval is interpreted as part of the T17 - No. 1 Vein Zone, which consists of a principal D-vein as well as a number of gold bearing C-veins. By interpreting and sampling mineralized zones, rather than individual veins as was done historically at Curraghinalt, we are able to identify wider mineralized envelopes (Figure 3).
Hole 13-CT-182
Another example of C-vein impact is seen in the Mullan Vein Zone in hole 13-CT-182. Assaying only the discrete D-vein gives 2.19 m grading 8.80 g/t of gold. By incorporating adjacent C-veins, this can be expanded to 7.38 m grading 4.2 g/t of gold. This intercept is likely conservative due to 0.5 m of core loss between 33.71 m and 41.09 m, which was treated as having a grade of 0.0 g/t of gold.
Qualified Person
Michele L. Cote, MSc., P. Geo., VP Exploration, Dalradian Resources, is the Qualified Person who supervised the preparation of the technical data in this news release.
Drill core was halved with samples averaging between 0.10 m and 0.30 m in mineralized material and up to 1 m in wall rock were submitted to ALS Laboratories in the Republic of Ireland. Rigorous quality assurance and quality control procedures have been implemented including the use of blanks, standards and duplicates. Core samples were analyzed by a 50 gram gold fire assay with an atomic absorption finish.
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 TSX-listed, Canadian based exploration company engaged in the acquisition, exploration and development of precious and base metals projects. With a European focus, our most advanced property is in Northern Ireland and around the high-grade lode gold deposit, Curraghinalt.
The Company's wholly owned subsidiary, Dalradian Gold Limited, holds a 100% interest, subject to certain royalties, in mineral prospecting licences and mining lease option agreements in counties Tyrone and Londonderry, Northern Ireland. The Department of Enterprise, Trade and Investment ("DETI") and the Crown Estate Commissioners ("CEC") have together granted to Dalradian base and precious metal mineral exploration rights to four contiguous areas collectively known as the Tyrone Project.
Dalradian's flagship deposit, Curraghinalt hosts an NI 43-101 compliant measured mineral resource of 0.02 MT grading 21.51 g/t gold for 10,000 contained ounces, indicated mineral resource of 1.11 MT grading 12.84 g/t gold for 460,000 contained ounces and inferred mineral resource of 5.45 MT grading 12.74 g/t for 2,230,000 contained ounces. Mineral resources which are not mineral reserves do not have demonstrated economic viability. Dalradian's Preliminary Economic Assessment reported positive results for a proposed underground mine at Curraghinalt including an after-tax IRR of 41.9% and NPV of $467 million based on an 8% discount rate using a 3 year trailing average gold price of $1378 per ounce.
Dalradian's NI 43-101 report, "A Preliminary Economic Assessment of the Curraghinalt Gold Deposit, Tyrone Project, Northern Ireland" is dated September 6, 2012, and was prepared by Mr. B. Terrence Hennessey, P.GEO., Mr. Barnard Foo, P.ENG., Mr. Bogdan Damjanovic, P.ENG., Mr. Andre Villeneuve, P.ENG., and Mr. Christopher Jacobs, CEng MIMMM of Micon International Limited, and is available on SEDAR at www.sedar.com.
In Norway, Dalradian holds mineral rights for approximately 1.3 million hectares over three greenstone belts, as well as an area hosting an historical silver mining district. Dalradian is engaged in data acquisition and analysis over all its concessions, with the 2013 field program commencing shortly.
Dalradian's Common Shares are listed on the Toronto Stock Exchange under the symbol "DNA". For further information, please see www.dalradian.com.
FORWARD-LOOKING INFORMATION
This news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future, including, without limitation, test work and confirming results from work performed to date, estimation of mineral resources 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 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.
Forward-looking statements involve known and unknown risks, uncertainties 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, competitive, political and social uncertainties; the actual results of current exploration activities; actual results of reclamation activities; conclusions of economic evaluations; meeting various expected cost estimates; changes in project parameters as plans continue to be refined; future prices of metals; possible variations of mineral grade or recovery rates; 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.
To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/Drillholelocationmap.jpg.
To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/histogram.jpg.
To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/cross_section.jpg.
Contacts:
Dalradian Resources Inc.
Shae-Lynn Mathers
Director, Investor Relations
+1.416.583.5622
investor@dalradian.com
www.dalradian.com