Technical Report for the Curraghinalt Gold Project, Northern Ireland
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Technical Report for the Curraghinalt Gold Project, Northern Ireland Report Prepared for Dalradian Resources Inc. Report Prepared by SRK Consulting (Canada) Inc. 3CD016.002 June 22, 2018 3CD016.002 – Dalradian Resources Inc. Technical Report, Curraghinalt Gold Project, Northern Ireland Page i Technical Report for the Curraghinalt Gold Project, Northern Ireland Dalradian Resources Inc. Queen's Quay Terminal, Suite 416, 207 Queen's Quay West Toronto, Ontario, Canada M5J 1A7 E-mail: [email protected] Website: www.dalradian.com Tel: +1 416 583 5600 SRK Consulting (Canada) Inc. Suite 1500, 155 University Avenue Toronto, Ontario, Canada M5H 3B7 E-mail: [email protected] Website: www.srk.com Tel: +1 416 601 1445 Fax: +1 416 601 9046 SRK Project Number 3CD016.002 Effective date: May 10, 2018 Signature date: June 22, 2018 Qualified Persons: [“Original signed”] [“Original signed”] Oy Leuangthong, PhD, PEng Dominic Chartier, PGeo Principal Consultant (Geostatistics) Senior Consultant (Geology) SRK Consulting (Canada) Inc. SRK Consulting (Canada) Inc. [“Original signed”] [“Original signed”] David Machuca, PhD, PEng Stacy Freudigmann, PEng Senior Consultant (Geostatistics) Principal Consultant SRK Consulting (Canada) Inc. Canenco Consulting Corp. Peer Reviewed by: [“Original signed”] Glen Cole, PGeo Principal Consultant (Resource Geology) SRK Consulting (Canada) Inc. Contributing Authors: Joycelyn Smith, PGeo James Siddorn, PhD, PGeo Cover: Landscape at the Curraghinalt Gold Project, Northern Ireland SRK Team Dalradian_Curraghinalt_2018_TR_3CD016002_JCS_DC_gc_ol_ah_20180620.docx June 22, 2018 3CD016.002 – Dalradian Resources Inc. Technical Report, Curraghinalt Gold Project, Northern Ireland Page ii IMPORTANT NOTICE This report was prepared as a National Instrument 43-101 Standards of Disclosure for Mineral Projects Technical Report for Dalradian Resources Inc. (Dalradian) by SRK Consulting (Canada) Inc. (SRK). The quality of information, conclusions, and estimates contained herein is consistent with the quality of effort involved in SRK’s services. The information, conclusions, and estimates contained herein are based on: i) information available at the time of preparation, ii) data supplied by outside sources, and iii) the assumptions, conditions, and qualifications set forth in this report. This report is intended for use by Dalradian subject to the terms and conditions of its contract with SRK and relevant securities legislation. The contract permits Dalradian to file this report as a Technical Report with Canadian securities regulatory authorities pursuant to National Instrument 43-101. Except for the purposes legislated under provincial securities law, any other uses of this report by any third party is at that party’s sole risk. The responsibility for this disclosure remains with Dalradian. The user of this document should ensure that this is the most recent Technical Report for the property as it is not valid if a new Technical Report has been issued. Copyright © 2018 SRK Consulting (Canada) Inc. This document, as a collective work of content and the coordination, arrangement and any enhancement of said content, is protected by copyright vested in SRK Consulting (Canada) Inc. (SRK). Outside the purposes legislated under provincial securities laws and stipulated in SRK’s client contract, this document shall not be reproduced in full or in any edited, abridged or otherwise amended form unless expressly agreed in writing by SRK. SRK Team Dalradian_Curraghinalt_2018_TR_3CD016002_JCS_DC_gc_ol_ah_20180620.docx June 22, 2018 3CD016.002 – Dalradian Resources Inc. Technical Report, Curraghinalt Gold Project, Northern Ireland Page iii Executive Summary Introduction The Curraghinalt project is a pre-development gold exploration project located in Northern Ireland, United Kingdom. It is located approximately 115 kilometres west of Belfast, the capital of Northern Ireland. Dalradian Resource Inc. (Dalradian) wholly owns 100 percent of the property. This technical report documents the Mineral Resource Statement prepared by Dalradian and SRK for the Curraghinalt gold project. This technical report was prepared following the guidelines of the Canadian Securities Administrators’ National Instrument 43-101 and Form 43-101F1. In December 2016, Dalradian disclosed the results of a feasibility study detailing additional exploration, hydrogeology, rock and soil geotechnical work, metallurgical and geochemical characterization of the gold mineralization and the waste rock, and mine engineering studies to design a new underground mine and mill complex targeting the mineral resources disclosed on May 5, 2016. The economic viability was evaluated at a feasibility level and documented in a publically disclosed technical report (JDS, 2017). The 2016 mineral resource evaluation is now obsolete and is replaced by the mineral resource evaluation reported herein. The updated mineral resource statement reported herein, along with a revised geotechnical study and ore sorting testwork, will support an ongoing updated feasibility study initiated by Dalradian. In this context, the results of the feasibility study reported on December 12, 2016 are no longer valid or current. This technical report supports a revised mineral resource model only, with the sections reported in the JDS (2017) technical report that support the feasibility study now obsolete and no longer required (Sections 14 to 21). Property Description and Ownership The Curraghinalt project is situated in Counties Tyrone and Londonderry, Northern Ireland. The Curraghinalt gold deposit, located near the centre of the property is approximately 115 kilometres west of Belfast by road. The property measures approximately 120,000 hectares comprising six contiguous areas (DG1, DG2, DG3, DG4, DG5, and DG6), to which Dalradian has mining lease option agreements for gold and silver. Dalradian also has prospecting licences that exclude gold and silver for four areas (DG1, DG2, DG5, and DG6) with the other two areas (DG3 and DG4) under application. Dalradian holds, through its wholly-owned subsidiary Dalradian Gold Ltd. (Dalradian Gold), a 100 percent interest, subject to four percent royalty payable to the Crown Estate Commissioners upon production of silver and/or gold. The Department for the Economy has granted to Dalradian Gold Prospecting Licences for all metals over four areas with two others under application. Access to the property is via a number of highways and local roads from Omagh to Gortin and Greencastle. Local country roads, private roads, and farm tracks provide generally good access within the property. The topography consists of rolling hills and broad valleys. Much of the property occurs within the Sperrin Mountains, a designated Area of Outstanding Natural Beauty. Dalradian commenced the environmental and social impact assessment at the end of 2014 to examine the potential impacts of a full mine build, as well as options for the elimination or mitigation of such impacts. The report, together with a project description, has formed the basis of a planning application for the full mine build which was submitted to the Department for Infrastructure in November 2017. During 2018, activities in permitting are expected to include preparation of responses to queries on the planning application and submission of supporting applications. SRK Team Dalradian_Curraghinalt_2018_TR_3CD016002_JCS_DC_gc_ol_ah_20180620.docx June 22, 2018 3CD016.002 – Dalradian Resources Inc. Technical Report, Curraghinalt Gold Project, Northern Ireland Page iv History Gold was recognized in the gravels of the Moyola River to the east of the property in 1652, and in the 1930s, an English company reported plans for alluvial gold mining in a prospectus. Documented exploration in the area dates back to the early 1970s. The property containing the Curraghinalt deposit was initially acquired by Ulster Base Metals (which later became Ulster Minerals) in 1981, an entity which later became a wholly-owned subsidiary of Ennex International plc (Ennex). Ennex conducted exploration on the property between 1982 and 1999, and then sold its interest in Ulster Minerals to Nickelodeon in January 2000. In February 2003, Tournigan Gold Corp (Tournigan) entered into an option agreement with Strongbow to earn an interest of up to 100 percent in the Curraghinalt deposit. In October 2009, Dalradian completed a purchase and sale agreement with Tournigan to acquire the licences, mineral rights, and surface rights (including easements). Historical exploration on the licences has included many phases of surface drilling, trenching, soil and stream sampling, prospecting, panning, ground and airborne geophysics, underground development, underground drilling, and underground channel sampling. Geological Setting and Mineralization The bedrock geology of Northern Ireland is a complex assemblage of Mesoproterozoic to Paleogene rock units. It can be sub-divided into four quadrants: • Northwest - composed predominantly of the Proterozoic Dalradian Supergroup and the early Ordovician Tyrone Igneous Complex • Southeast - composed mainly of rocks of the Southern Uplands/Longford-Down Terrane, an allochthonous prism composed of an Ordovician and Silurian turbidite sequence • Southwest - underlain mainly by Upper Palaeozoic sedimentary rock deposited in continental to marine environments • Northeast - underlain by the early Palaeogene (60 – 55 Ma), subaerial Antrim Lava Group and minor underlying Paleozoic units The local geology of the project area comprises three