Curraghinalt will be the first gold mine in Northern Ireland if permitted (Image: Dalradian Resources)

Curraghinalt will be the first underground gold mine in Northern Ireland if permitted (Image: Dalradian Resources)

Invest Northern Ireland, which is a regional business development agency and part of the European Regional Development Fund, has offered Dalradian Resources (DNA:TSX) 326,000 pounds sterling ($590,000) worth of job training support in order to expedite the development of the Curraghinalt gold mine located in Northern Ireland.

Patrick F.N. Anderson, Dalradian's CEO, commented: "Our board, which has developed mining projects all over the globe, is focused on the Curraghinalt deposit in Northern Ireland because it has the right combination of geology, infrastructure, work force and a business-friendly government. To date, the gold deposit has responded exactly as we'd hoped; as we've invested, it has grown, and the preliminary economic assessment is very positive. This next phase of underground exploration, which will be managed and operated out of our Tyrone facilities, will take us through the more advanced economic assessment required to reach a mine construction decision."

Dalradian's Curraghinalt project is a high-grade gold deposit which hosts over 1 million ounces of high-grade gold in the M&I category, including 15,100 ounces of gold grading above 20 g/t and an additional 2.5 million ounces in the inferred category at an average gold grade of 9.67 g/t.

Based on the most recent economic study, the project is estimated to produce 145,000 ounces of gold annually through a 1,700tpd plant for 15 years.  The project is expected to cost $192 million in initial capital and will produce gold at $532 per ounce on a cash cost basis.

The company plans to complete infill drilling to convert much of the 2.5 million ounces from Inferred to the M&I category (Image: Dalradian Resources)

The company plans to complete infill drilling to convert much of the 2.5 million ounces from Inferred to the M&I category (Image: Dalradian Resources)

With those exceptional grades, the deposit shows robust economics.  Based on $1,378 per ounce gold, the project generates an after-tax NPV (8%) of $467 million and an after-tax IRR of 41.9%.  With the grade and associated operating margin, the project is viable even when you stress test it against a much lower gold price.  At $814 per ounce gold (10-year trailing average), the project still produces an after-tax IRR of over 20%.  Most projects are lucky to achieve that return using $1,500 per ounce gold.

The company is still working to permit the project but claims they are making good progress.

In the release today, Northern Ireland's Enterprise, Trade and Investment Minister Arlene Foster said: "I first met with Dalradian Resources last year on a visit to Canada, and I very much welcome that those initial talks, combined with the company's attendance at the Northern Ireland Investment Conference last October, have led to this investment. The company is looking to develop the first underground gold mine in Northern Ireland, and this offers a unique opportunity to introduce specialist skills and sophisticated international resource investment into our important professional services sector."

This investment and support by this regional agency should give investors more comfort in the company's ability to permit the project in a timely manner.

Theey just closed a $27 million bought deal financing at $0.90 per unit (3 year 1/2 warrant at $1.50) which will allow them to continue permitting and underground drilling.

Read: Dalradian Receives £326,000 Investment from Northern Ireland Government to Support Curraghinalt Project