Ni43-101Feasibility Study Technical Report on the Curraghinalt Gold
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DALRADIAN RESOURCES INC. CURRAGHINALT FEASIBILITY STUDY NI 43-101 FEASIBILITY STUDY TECHNICAL REPORT ON THE CURRAGHINALT GOLD PROJECT NORTHERN IRELAND Qualified Persons Company Prepared for: Garett Macdonald, P.Eng. JDS Energy & Mining Inc. Michael Makarenko, P.Eng. JDS Energy & Mining Inc. Indi Gopinathan, P.Eng. JDS Energy & Mining Inc. Dalradian Resources Inc. Stacy Freudigmann, P.Eng. JDS Energy & Mining Inc. Suite 416 – 207 Queens Quay West Jean-François Couture, P.Geo SRK Consulting (Canada) Inc. Toronto, ON M5J 1A7 Bruce Murphy, P.Eng. SRK Consulting (Canada) Inc. Cam Scott, P.Eng. SRK Consulting (Canada) Inc. EFFECTIVE DATE: DECEMBER 12, 2016 William Harding, C.Geol. SRK Consulting (UK) Ltd. Effective Date: December 12, 2016 REPORT DATE: JANUARY 25, 2017 i DALRADIAN RESOURCES INC. CURRAGHINALT FEASIBILITY STUDY NOTICE JDS Energy & Mining, Inc. prepared this National Instrument 43-101 Technical Report, in accordance with Form 43-101F1, for Dalradian Resources Inc. The quality of information, conclusions and estimates contained herein is 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. Dalradian Resources Inc. filed this Technical Report with the Canadian Securities Regulatory Authorities pursuant to provincial securities legislation. Except for the purposes legislated under provincial securities law, any other use of this report by any third party is at that party’s sole risk. Effective Date: December 12, 2016 ii DALRADIAN RESOURCES INC. CURRAGHINALT FEASIBILITY STUDY Contents Contents ........................................................................................................................ iii Tables and Figures...................................................................................................... xii List of Appendices ..................................................................................................... xix 1 Executive Summary ...................................................................................... 1-1 1.1 Introduction ........................................................................................................................... 1-1 1.2 Location, Access and Ownership ........................................................................................... 1-1 1.3 History, Exploration and Drilling ............................................................................................. 1-2 1.4 Geology & Mineralization ....................................................................................................... 1-2 1.5 Mineral Resource Estimate .................................................................................................... 1-4 1.6 Mineral Reserve Estimates .................................................................................................... 1-1 1.7 Mining ................................................................................................................................... 1-1 1.8 Metallurgical Testing and Mineral Processing ........................................................................ 1-5 1.9 Recovery Methods ................................................................................................................ 1-6 1.10 Infrastructure ......................................................................................................................... 1-7 1.11 Environment and Permitting .................................................................................................. 1-9 1.12 Capital Costs ....................................................................................................................... 1-10 1.13 Reclamation & Closure ........................................................................................................ 1-12 1.14 Operating Costs .................................................................................................................. 1-13 1.15 Economic Analysis .............................................................................................................. 1-15 1.16 Conclusions ........................................................................................................................ 1-17 1.17 Recommendations .............................................................................................................. 1-19 2 Introduction ................................................................................................... 2-1 2.1 Qualifications and Responsibilities ......................................................................................... 2-1 2.2 Units, Currency and Rounding ............................................................................................... 2-2 2.3 Sources of Information .......................................................................................................... 2-2 3 Reliance on Other Experts ........................................................................... 3-1 4 Property Description and Location.............................................................. 4-1 4.1 Location ................................................................................................................................ 4-1 4.2 Mineral Tenure ...................................................................................................................... 4-1 4.3 Location of Mineralized Zones ............................................................................................... 4-5 4.4 Underlying Agreements ......................................................................................................... 4-8 4.5 Permits and Authorization...................................................................................................... 4-8 4.6 Environmental Liabilities & Considerations ............................................................................ 4-8 5 Accessibility, Climate, Local Resources, Infrastructure and Physiography 5-1 6 History ............................................................................................................ 6-1 6.1 Acquisition History ................................................................................................................. 6-1 6.2 Exploration History ................................................................................................................ 6-2 6.3 Historical Mineral Resource Estimates ................................................................................... 6-9 6.4 Historical Production ............................................................................................................. 6-9 Effective Date: December 12, 2016 iii DALRADIAN RESOURCES INC. CURRAGHINALT FEASIBILITY STUDY 7 Geological Setting and Mineralization......................................................... 7-1 7.1 Regional Geology .................................................................................................................. 7-1 7.2 Property Geology .................................................................................................................. 7-5 7.2.1 Dalradian Supergroup – Licences DG1, DG2, DG3, DG4, DG5 and DG6............................... 7-5 7.2.2 Tyrone Igneous Complex – Licence DG2............................................................................... 7-8 7.2.3 Carboniferous ..................................................................................................................... 7-11 7.3 Mineralization ...................................................................................................................... 7-13 7.3.1 The Curraghinalt Gold Deposit ............................................................................................ 7-13 7.3.2 Tyrone Volcanic Group ........................................................................................................ 7-16 8 Deposit Types ................................................................................................ 8-1 8.1 Orogenic Gold Deposits ........................................................................................................ 8-1 8.2 Volcanic Massive Sulphide Deposit Model ............................................................................. 8-3 9 Exploration .................................................................................................... 9-1 9.1 Exploration 2010 – 2011 ........................................................................................................ 9-1 9.2 Exploration 2012 – 2013 ........................................................................................................ 9-6 9.3 Exploration 2014 – 2016 ........................................................................................................ 9-8 9.3.1 Underground Development Program ..................................................................................... 9-9 10 Drilling .......................................................................................................... 10-1 10.1 Drilling by Riofinex (1970’s) ................................................................................................. 10-3 10.2 Drilling by Celtic Gold (1987) ............................................................................................... 10-3 10.3 Drilling by Ennex (1984 – 1999) ..........................................................................................