Dalradian’s Preliminary Economic Assessment (PEA), dated July 25, 2012, reported positive results for a proposed underground mine at Curraghinalt including:
Production of an average of 145,000 ounces of gold per year 15-year mine life
After-tax IRR of 41.9% using a 3 year trailing average gold price of $1378 per ounce
After-tax IRR of 33.4% using a 5 year trailing average gold price of $1166 per ounce
After-tax IRR of 20.2% using a 10 year trailing average gold price of $814 per ounce
Initial capex of $192 million which includes $38 million in contingency
Cash costs of $532 per ounce
The application for the next phase of underground development and bulk sampling has been progressing through the Department of Environment’s (DOE) planning approval process, with the Strategic Planning Division of the DOE recently recommending approval of the project. The remaining steps in the approval process and key milestones that will follow on approval include:
Omagh District Council (final stakeholder) vote on December 2 to ratify the positive recommendation from the Strategic Planning Division for the underground exploration program;
Issuance by the Strategic Planning Division of final planning permission, including terms and conditions, shortly thereafter; Compliance by Dalradian with planning pre-conditions, including approval of various environmental management plans, by end ofJanuary 2014;
Awarding of surface and underground contracts by Dalradian in early Q1 2014;
Commencement of earthworks in Q1 2014;
Mineral Resource update in Q1 2014;
Preliminary Economic Assessment update in Q2 2014;
Commencement of underground blasting in Q2 2014;
Stoping begins in Q3 2014;
Metallurgical testing commencing in Q4 2014.
