Patrick F.N. Anderson President & CEO

Transcription

1 AGM June 23, 2017 Patrick F.N. Anderson President & CEO

2 FORWARD-LOOKING INFORMATION AND QUALIFIED PERSON This presentation contains forward looking information which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its subsidiaries (collectively, Dalradian ) and its mineral projects, the future price of metals, the estimation of mineral resources, the realization of mineral resource estimates, the timing and amount of estimated future production, costs of production, capital, operating and exploration expenditures, costs and timing of the development of new deposits, costs and timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending regulatory matter and the realization of the expected production, economics and mine life of the gold deposit. Often, but not always, forward looking statements can be identified by the use of words and phrases such as plans, expects, is expected, budget, scheduled, estimates, forecasts, intends, anticipates, or believes or variations (including negative variations) of such words and phrases, or state that certain actions, events or results may, could, would, might or will be taken, occur or be achieved. Forward looking statements are based on the opinions and estimates of management as of the date such statements are made and are based on various assumptions such as the continued political stability in Northern Ireland, that permits required for Dalradian s operations will be obtained on a timely basis in order to permit Dalradian to proceed on schedule with its planned exploration and mine development, construction and production programs, that skilled personnel and contractors will be available as Dalradian s operations continue to grow, that the price of gold will be at levels that render Dalradian s mineral projects economic, that the Company will be able to continue raising the necessary capital to finance its operations and realize on mineral resource and mineral reserve estimates and current mine plans and that the assumptions, qualifications, parameters and methods contained in the Technical Report FS (as defined below) are accurate and complete, that the results of the ESIA will be positive and that a permitting application for mine construction will be approved. Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Dalradian to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current and future exploration activities; the actual results of reclamation activities; conclusions of economic evaluations; meeting various expected cost estimates; changes in project parameters and/or economic assessments as plans continue to be refined; future prices of metals; possible variations of mineral grade or recovery rates; the risk that actual costs may exceed estimated costs; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; political instability; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled Risk Factors in the Company s Annual Information Form for the year ended December 31, 2016 dated March 23, 2017 (the AIF ). Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward looking statements contained herein are made as of the date of this presentation and the Company disclaims any obligation to update any forward looking statements, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements. Certain scientific and technical data in this presentation is based on and was derived from the Technical Report Feasibility Study (the Technical Report FS ) titled NI Feasibility Study Technical Report on the Gold Project Northern Ireland with an effective date of December 12, 2016, prepared by: (i) Garett Macdonald, P.Eng.; Michael Makarenko, P.Eng., Stacy Freudigmann, P.Eng. and Indi Gopinathan, P.Eng., each of JDS Energy & Mining Inc. ( JDS ); (ii) William Harding, C.Geol. of SRK Consulting (UK) Ltd.; and (iii) Jean-François Couture, P.Geo., Bruce Murphy, P.Eng., and Cam Scott, P.Eng., each of SRK Consulting (Canada) Inc. Each of the authors of the Technical Report FS is a qualified person within the meaning of NI See Interests of Experts. The scientific and technical data contained herein is subject to and qualified by all of the assumptions, qualifications and procedures described in the Technical Report FS, as applicable. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Eric Tremblay, P.Eng., Chief Operating Officer, and Greg Hope, M.Sc., MAIG, Exploration and Geology Manager with Dalradian Resources Inc., are the Qualified Persons who have reviewed and approved the scientific and technical information in this presentation. 2 2

3 MINCO ROYALTY ACQUISITION - IRISH TAKEOVER RULES Until the Minco Royalty Acquisition has closed, Dalradian must adhere to a number of restrictions on public statements, including but not limited to: No disclosures of any material new information or expressions of any significant new opinion No statements which, even if not factually inaccurate, may mislead shareholders No estimates of the anticipated financial effects of the takeover (including, an estimate of a resulting change in profit, cash flow, operating costs or earnings per share) Restrictions on referring to Feasibility Study (FS) and offer for Minco No disclosure of information/ opinions amounting to profit forecasts and asset valuation 3 3

4 ACCOMPLISHMENTS (including subsequent period) Geology Resource update expanded total ounces and doubled M&I 1 Deposit still open in all directions 1 Added 2 new licences; land package now totals 120,000 ha with many gold showings 2 Engineering Positive results from 3 test stopes and milling reconciliation 3 Simple flow sheet and metallurgy 4 94% gold recovery 4 Feasibility Study Base-case FS demonstrated economic rationale for developing program of drilling, geotechnical and ore-sorting testing 6 Jurisdiction All political parties in NI focused on economy and job creation Simple and transparent permitting process Submission of Planning Application during 2017 Financing $34 million in warrants exercised to date Additional warrants on issue with potential to provide a further CAD$39 million if exercised 7 Strategy Permit a mine Continue to improve quality and value of Gold Project 1 Refer to press release dated May 5, Refer to press release dated July 6, Refer to press releases dated September 14, 2016 and December 8th, Refer to press release dated June 22, Refer to press release of December 12, Refer to press release dated March 27, Refer to Dalradian s Annual Report posted March 27, 2017 for full details on outstanding warrants

5 5 STOCK PRICE PERFORMANCE $2.00 $1.75 $1.50 $1.25 $1.00 $1.57 June 22, million warrants at $1.50 expire July 31, million warrants at $1.04 expire Oct 7, 2017 $0.75 $0.50 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Data provided by TSX Infosuite. All dollars quoted in $ CAD ANALYST COVERAGE SHARE CAPITALIZATION AND CASH POSITION Adam Melnyk Stephen Walker Jonathan Guy Ryan Walker Eric Zaunscherb Andrew Mikitchook Shares outstanding of 251 million and fully diluted of 302 million as of June 2017 Tyron Breytenbach Michael Curran Craig Stanley Cash position of $36 million as of March 31, 2017

6 6 RESOURCES & RESERVES Since 2010, we have grown the resource more than 7-fold over 4 updates Based on more than 130,000 m of drilling and ~1,700 m of underground development High-grade gold resource open in all directions 1 Measured: 0.03 MT grading g/t Au for 25,000 contained ounces Indicated: 5.58 MT grading g/t Au for 2.07 million contained ounces Inferred: 7.13 MT grading g/t Au for 2.31 million contained ounces Reserves of 1.44 million ounces ( g/t Au) 1 Refer to Technical Report FS filed on SEDAR

7 7 RESOURCE EXPANSION Deposit Rylagh Deposit Alwories Discovery Holes g/t Au 2a g/t Au 2b g/t Au 2c 12km Trend Attagh Burn g/t Au 4 Deposit Resource effective as of May Measured: 0.03 Moz Au ( g/t) Indicated: 2.07 Moz Au ( g/t) Inferred: 2.31 Moz Au ( g/t) 400 m Step-out 5.34 g/t Au m Step-out g/t Au 5 Proposed mill site 1 Refer to Technical Report FS 2 2a 12-CT-173 drilled at 150/-60; 2b and 2c 12-CT-162 drilled at 180/-55; 2b from m m, 2c from m m; true width undetermined 3 11-CT-99 drilled from m 4 12-CT-167 drilled from m 5 12-CT-154 Vein and Vein Intersections

8 8 HIGH GRADE REGIONAL DISCOVERIES Deposit Deposit Rylagh 12km Trend Fallagh SAMPLES g/t Au (B0641) g/t Au (B0633) g/t Au (B0625) g/t Au (B0627) Rylagh SAMPLES 1 - New Discovery g/t Au (F11601) 1.37 g/t Au (F11627) 168 g/t Au (F36011) 42.4 g/t Au (F36011) kilometres kilometres kilometres 1 See press release dated December 2, 2015 for details 2 See press release dated January 22, 2013 for details

9 9 REGIONAL EXPLORATION New licence areas DG5/DG6 added in June 2016 DG5 and DG6 anomalies are the largest on our licences outside of Soil sampling, panning and stream sediment sampling on all six licences Over 120,000 hectares under licence Note: All data can be found in the Technical Report FS

10 WORK PROGRAM 40,000 metres of infill, step-out and geotechnical drilling Additional geotechnical studies and ore-sorting tests

11 SUMMARY

12 DNA HIGHLIGHTS Large, high-grade vein system Technical work ongoing to expand, with a focus on reserves Business-friendly jurisdiction with transparent permitting Planning Application is nearing completion