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Dalradian Recovers 54% More Gold Than Predicted in Resource Model From Two Long-Hole Test Stopes

Sep 14, 2016

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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

                                                 Contained gold
                                           Resource      Dalradian      Test
                                              model  grade control   stoping
                                         estimation          model   results
Stope 1 (oz)                                    353            369       439
Stope 2 (oz)                                    562            667       973
Total (oz)                                      915           1036      1412
Variation from resource model
 estimation (%)                                                13%       54%

Table 2: Comparison of stope design vs. actual results

                 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.
         results     1.4        73   1,029     13.27          439        29%
Stope 2 Design       1.3        76   1,128     18.40          667       N.A.
         results    1.33        76   1,244     24.34          973        10%

(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 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.


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.

Dalradian Resources Inc.
Marla Gale
Vice President Communications
+1 416 583 5622

Grant Thornton UK LLP (Nominated Adviser) Philip Secrett / Richard Tonthat / Harrison Clarke +44 (0)20 7383 5100

Canaccord Genuity Limited (Broker)
Henry Fitzgerald-O'Connor / Martin Davison
+44 20 7523 8000

Source: Dalradian Resources Inc.