Shares in Dalradian Resources (TSX:DNA) closed 5.3% higher today at $0.79 on relatively high volume after the company announced metallurgical test results for its 100% owned Curraghinalt project in Northern Ireland. 1,025,740 shares changed hands as the news added some positive attributes to the company’s flagship property.
ALS Metallurgy of Kamloops, BC performed the testing for Dalradian and recovered 99.4% of gold using a sequential gravity-flotation circuit. Recoveries of 29.4% and 70.0% were attributed to the gravity circuit and bulk rougher concentrate, respectively. These results are an improvement from the base-case scenario of Dalradian's Preliminary Economic Assessment (September 2012), which assumed whole-ore cyanidation with 91% recovery. In addition to the positive news on the gold recovery, Dalradian sees other benefits from the use of these methods.
Today's metallurgical results may also improve the marketing and permitting aspects of Curraghinalt. Dalradian will consider the economics of doing business with different smelters, while they also may have the ability to produce doré metal bars on site from the gravity concentrate. Additionally, Dalradian claims that the gravity-flotation circuit will produce low-sulfide tailings that will not be subjected to cyanide, which should ease some of Curraghinalt's permitting. The company will continue to explore these options with further metallurgical testing.
Curraghinalt is a high-margin, high-grade project with 2.7 million contained ounces of gold (measured, indicated, and inferred). Dalradian applied for a permit in February 2013 to extend its underground exploration tunnel by 2,000 meters, from which they will collect a 40,000-tonne bulk sample for additional metallurgical testing. Extensions from the main adit and new drifts will be used to demonstrate vein continuity. Others have pointed out difficulties in mining narrow veins and will look for answers during Curraghinalt's continued development. The planned underground exploration should address (or reinforce) some of these lingering doubts.
For further reading, see DNA - Is Dalradian on Your Radar? or visit the company website.
Disclosure: I own shares in Dalradian Resources. This is NOT investment advice. Always perform your own due-diligence.