Dalradian Releases New PEA for Curraghinalt Gold Deposit

Dalradian Resources Inc. (TSX:DNA) announced that it has completed a new preliminary economic assessment (PEA) for its Ireland-based Curraghinalt deposit. It is based on a May 2014 resource update.

PEA highlights include:

• After-tax and royalties Internal Rate of Return (‘IRR’) of 36.2% based on a gold price of $1,200 per ounce (pre-tax IRR of 42.9%);
• Average mined grade of 9.3 g/t gold;
• An average production rate of 194,000 oz of gold per year for the first five years and an average of 149,000 oz of gold per year over the remainder of the 18 year mine life;
• LOM gold production of 2.9 million ounces;
• Average LOM cash operating costs of US$485 per ounce, including royalties, refining costs and by-product credits of $5.29/oz gold;
• Project payback of 2.6 years from first gold production;
• An after-tax Net Present Value (‘NPV’) of $504 million using an 8% discount rate, $716 million using a 5% discount rate and $402 million using a 10% discount rate;
• Initial capital expenditures of approximately $249 million prior to production start-up (including contingencies of $48 million); and
• Underground mining using mechanized longhole methods with ramp access and truck haulage.

Patrick F.N. Anderson, CEO of Dalradian, commented:

Our Curraghinalt project continues to deliver industry-leading results. Even at a significantly lower gold price, it is still yielding an IRR north of 35%, after tax and royalties. Offsetting the lower gold price is a higher head grade of 9.3 g/t, lower cash costs of $485 per ounce and a lower tax-rate, as the government continues to work to attract foreign investment. This PEA is just a snapshot in time as we have begun our PFS and underground program, with the aim of further de-risking the project.

Click here to read the full Dalradian Resources Inc. (TSX:DNA) press release.