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Dalradian Resources (TSX:DNA) released its Q2 results for the quarter ended June 30 2015, reporting $36.1 million in cash and equivalents, and a narrowed net loss ($1.2 million vs $1.7 million during the previous year).
Dalradian Resources (TSX:DNA) released its Q2 results for the quarter ended June 30 2015, reporting $36.1 million in cash and equivalents, and a narrowed net loss ($1.2 million vs $1.7 million during the previous year).
The company is now targeting a more advanced feasibility study instead of the prefeasibility study previously planned for the Curraghinalt project.
As quoted in the press release:
In September 2014, Dalradian commenced a PFS with SRK Consulting (Canada) Inc. as the principal consultant. Work on the PFS has included an options analysis looking at alternatives to several aspects of the Preliminary Economic Assessment, including but not limited to dry stack tailings and the addition of a flotation circuit. Subsequent to the end of Q2 2015 management decided to transition to a FS based on the technical results received to date.
The feasibility study will include an economic assessment of the project in a technical report prepared in accordance with NI-43-101 and is proceeding on the basis of:
— mining primarily by longhole but with additional methods as required;
— mineral processing incorporating a flotation circuit;
— dry stack tailings; and
— approximately 50% of waste rock to be returned underground as paste backfill.
The FS is being supported by the Underground Program, including expanded infill drilling of at least 30,000 metres. Publication of the FS depends on continued positive results from the infill drilling program.
Subsequent to the end of Q2 2015, the Company added to its surface rights for a potential mill site in proximity to the Curraghinalt gold deposit. Additional land acquisitions are targeted for the remainder of 2015 and will be reported on a quarterly basis if and when they occur. The cost of additional land purchases is not included in the budget because of uncertainties in cost and timing and for competitive reasons.
Financial highlights were as follows:
— Cash and cash equivalents were $36.1 million at June 30, 2015 compared with $14.7 million at June 30, 2014
— Net loss of $1.2 million ($0.01 per share) in the three months ended June 30, 2015 compared to a net loss of $1.7 million ($0.02 per share) in the comparable period of 2014; net loss for the six months ended June 30, 2015 was $2.6 million ($0.02 per share) compared to a net loss of $2.9 million ($0.03 per share) in the comparable period of 2014
— Spending on asset evaluation, which includes development planning, permitting and other activities associated with the Underground Program, was $9.4 million in the three months ended June 30, 2015 compared with $0.9 million in the comparable period of 2014 due to increased development activities associated with the Underground Program; similarly for the six months ended June 30, 2015, asset evaluation spending was $14.9 million compared to $1.8 million in the comparable period of 2014
— Exploration expenditures were nominal in the three months ended June 30, 2015 compared with $0.4 million in the comparable period of 2014; for the six months ended June 30, 2015 exploration expenditures were $0.1 million compared to $0.8 million in the comparable period of 2014
— As of August 14, 2015 Dalradian had 163,890,205 Common Shares issued and outstanding