Initial revised mineral resource modeling approach for two veins at Curraghinalt show increase in ounces

TORONTO, ONTARIO–(Marketwired – Sept. 11, 2017) – Dalradian Resources Inc. (TSX:DNA)(AIM:DALR) (“Dalradian” or the “Company”) announces that a sensitivity study estimation performed on two of the major veins in the Curraghinalt gold deposit (T17 and V75 veins) resulted in a 37% increase in grade and a 10% increase in ounces. In the new study, the geology wireframes were re-modelled using assays with a heavier emphasis on logged geology. This approach yields 24% narrower veins accompanied by a 20% decrease in tonnage. (See Tables 1 and 2 below.) Composite length was adjusted from 0.5 to 0.3 metres to reflect the narrower domains, but all other parameters remain unchanged with the aim to isolate the impact of re-wireframing.

Dalradian assessed the impact of the revised modelling methodology on potentially mineable material for the two veins by applying the same parameters as those used in the December 2016 feasibility study (FS). It was found that the revised vein block models resulted in a higher potentially mineable tonnage of 34% and a corresponding increase in mineable ounces of 32% at the expense of a marginal decrease in grade (1.5%). (See Tables 3 and 4 below.)

This change in modelling sequence, where wireframing is carried out on geology and assays, followed by compositing within these wireframes, can in part explain the positive reconciliation between mill and resource (42% more ounces) resulting from the test stopes completed in 2016. (See news releases of September 14 and December 8.)

Patrick F.N. Anderson, President and CEO said, “We are pleased with the results of this exercise, which uses the same drill data to compare the impact of wireframing prior to compositing, in estimating the mineral resources and resulting mineral reserves at Curraghinalt. The new method is the culmination of a great amount of hard work and reflects our better understanding of the deposit. The resulting shapes for the T17 and V75 veins are more heavily influenced by geology as opposed to previous models which were largely grade driven. This has resulted in smoother, higher grade veins that are only slightly narrower than in the previous model. The implications are that we can use longhole mining methods more extensively and bring new ounces into the mine plan which had previously been below the cut-off grade (see Figure 1). The bottom line is that we have 32% more mineable ounces for the two veins tested.”

Figure 1 is also available at: http://www.dalradian.com/news-and-events/news-releases/news-releases-details/September-11-2017-News-Release-Figures/

The sensitivity study estimation announced today does not represent a new resource update. However, the Company expects that this revised wireframing approach will be used in the updated resource estimate planned once the current drill program is completed and expects similar positive results from the other modelled veins.

Table 1: Comparative V75 Vein Estimates

Comparison of V75 Mineral Resource 2016 with revised mineral modeling estimates 2017

2016 Mineral Resource
2017 Estimates
% Change
Mineral Resource Category
Tonnes
(‘ 000 t)

Au
GPT

Au Oz
(‘ 000 oz)

Tonnes
(‘ 000 t)

Au
GPT

Au Oz
(‘ 000 oz)

Tonnes
Au
GPT

Au
Oz

Measured Indicated
497
13.15
210
377
17.88
217
-24%
36%
3%
Inferred
1,085
9.57
334
881
12.95
367
-19%
35%
10%

Table 2: Comparative T17 Vein Estimates

Comparison of T17 Mineral Resource 2016 with revised mineral modeling estimates 2017

2016 Mineral Resource
2017 Estimates
% Change
Mineral Resource Category
Tonnes
(‘ 000 t)

Au
GPT

Au Oz
(‘ 000 oz)

Tonnes
(‘ 000 t)

Au
GPT

Au Oz
(‘ 000 oz)

Tonnes
Au
GPT

Au
Oz

Measured Indicated
709
14.30
326
593
19.70
375
-16%
38%
15%
Inferred
481
8.78
136
380
12.13
148
-21%
38%
9%

Table 3: Comparative T17 and V75 Mineral Reserve 2016 vs. Veins Estimates Mineable Material 2017

2016 Mineral Reserve
(0.328 oz/t mined)

2017 Estimates Mineable Material
(0.323 oz/t mined)

Tonnes
GPT Au
Oz Au
% of Total
Tonnes
GPT Au
Oz Au
% of Total
Longhole
421,291
10.58
143,300
35%
687,408
10.00
220,905
43%
Uppers
248,058
8.36
66,683
21%
279,514
7.84
70,424
17%
Pillars
131,887
7.38
31,313
11%
147,379
7.89
37,385
9%
Cut and Fill
182,353
11.41
66,914
15%
227,525
11.26
82,351
14%
Development
217,865
12.18
85,281
18%
262,803
12.63
106,737
16%
Total/Average
1,201,454
10.19
393,492
100%
1,604,628
10.04
517,802
100%

Table 4: Variation from Mineral Reserve 2016 and Vein Estimates Mineable Material 2017

Change in Vein Estimates from 2016 to 2017

Tonnes
%
GPT Au
%
Ounces
%
Longhole
266,117
63%
-0.58
-6%
77,606
54%
Uppers
31,456
13%
-0.52
-6%
3,741
6%
Pillars
15,492
12%
0.51
7%
6,072
19%
Cut and Fill
45,172
25%
-0.16
-1%
15,436
23%
Development
44,938
21%
0.46
4%
21,456
25%
Total/Average
403,174
34%
-0.15
-1.5%
124,310
32%

Qualified Persons

Eric Tremblay, P. Eng., Chief Operating Officer and Greg Hope, MSc, MAIG, Exploration and Geology Manager, are the Qualified Persons who supervised and reviewed the preparation of the technical data in this news release.

For additional details on the Curraghinalt high-grade lode gold deposit, please refer to the Company’s technical report titled “NI 43-101 Feasibility Study Technical Report on the Curraghinalt Gold Project Northern Ireland” (the “Technical Report”), dated January 25, 2017 and prepared by Garett Macdonald, P.Eng., Michael Makarenko, P.Eng., Indi Gopinathan, P.Eng. and Stacy Freudigmann, P.Eng., all of JDS Energy Mining Inc., and Jean-François Couture, P.Geo., Bruce Murphy, P.Eng., Cam Scott, P.Eng., all of SRK Consulting (Canada) Inc., and William Harding, C.Geol., of SRK Consulting (UK) Ltd., all of whom are independent Qualified Persons as defined by NI 43-101. The Technical Report is available on the Company’s website and on SEDAR at www.sedar.com.

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.

FORWARD LOOKING STATEMENTS

This press release contains “forward looking information” which may include, but is not limited to, statements with respect to future financial or operating performance of the Company and its subsidiary 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 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 mine development, construction and production programs, 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 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 and mineral reserve estimates and current mine plans, that the assumptions contained in the Company’s Technical Report dated January 25, 2017 are accurate and complete, that the results of the ESIA 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 for the year ended December 31, 2016 dated March 23, 2017 (the “AIF”).

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.