Dalradian Resources, Inc. DRLDF

News - Results from New Drill Program

[R_J_]

Dalradian intersects 1.72 metres at 28.23 g/t gold at Curraghinalt in first results from new drill program
[ PDF Version ]
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https://s1.q4cdn.com/162468244/files/doc_news/DNA_PR_April_26_2017_FINAL.pdf
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Louis James Comments
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This is an excellent first batch of infill drill results from Dalradian’s 2017 drill campaign at Curraghinalt.
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All 10 holes hit economic-looking gold mineralization.
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Granted, quite a few of the intersections were narrow, less than a meter, but most were high-grade enough to still work, even when diluted across machine-mineable widths.
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Others hit several longer intercepts, including the highlighted 1.72 meters of 28.23 g/t gold that fill in gaps and add new high-grade veins in the wall-rock surrounding the main vein, potentially converting what would be waste to ore.
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But the most important aspect of these results is that the holes hit the veins where they were supposed to.
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This shows the all-important continuity low-cost mining depends upon, and will help upgrade Curraghinalt’s Inferred resource to the Indicated category.
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That will allow the upgraded material to be included in the updated mine plan and the optimized feasibility study the company is working on.
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By the way of that, we spoke with management recently, and understand that they are even more optimistic about the impact of the optimized feasibility study than we understood before.
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Permitting work continues (we understand that they are going the extra mile to submit the best environmental impact statement [EIS] possible, to minimize chances for setback at the public hearing stage), but the company has is not pushing hard for project finance at this stage.
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That makes sense, if the optimized study will include more gold in the mine plan, for much the same cost up front.
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That would increase NPV and IRR, which should make for better terms on whatever loans, streams, and equity options the company ends up taking.
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This is all sound and as it should be, but it does mean we’re not likely to see a Construction Decision until after this year, or perhaps early next year, once the permits and financing are in hand.
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Still, this de-risking and value-adding work should make for all the better an outcome, when the time comes. . . .
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End Quote.
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By the way.
RE:RE:buyout of Minco plc and Buchans demerger?
[ Some extra scuttlebutt follow-on, from a few days ago, about a previous {March} news release ]
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Louis James Comments
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. . . We did learn from external sources about management’s plans to extinguish Minco’s 2% royalty on the Curraghinalt gold project.
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The deal is set up to look like a takeover (by Dalriadian) but in reality all that it gets is the royalty.
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As commented at the time, eliminating this 2% hit off the top is an obvious plus for Dalradian.
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 Of course, the deal means additional expenses for the company, but it can afford them.
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Of course, for most hesitant investors that’s still likely an ‘if’ question given that we haven’t yet had a Construction Decision.
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We see this as a ‘when’ question, given that the company is working on securing the $192 million needed to build the mine.
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With a base-case IRR of 24.4% and an NPV of 301.1 million, we think Dalradian will succeed.
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End Quote.
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RJ