Dalradian Resources losses slightly widen as it continues development

Dalradian Resources announced its results for the three and nine months ended September 30 on Thursday, including closing cash and cash equivalents of $43.1m, down from $43.3m on 31 December 2015.

The TSX and AIM-traded company also reported that the work program at its Curraghinalt Gold Project in Northern Ireland has remained on track and on budget with permitting and ESIA activities continuing into Q4 2016.

It said the process to submit the Planning Application has commenced and submission is expected in early Q1 2017.

During the quarter, common share purchase warrants, originally issued on October 7, 2015, were exercised by several shareholders at a price of C$1.04, resulting in proceeds to the company of $24.8 million.

The firm made a net loss of $4.8m, or two cents per share, in the nine months to 30 September, compared with a net loss of $4.7m, or three cents per share, in the comparable period of 2015.

Net losses were $1.4m, or one cent per share, in the three months to 30 September, compared with a net loss of $2.1m, or one cent per share, in the comparable period of 2015.

Spending on asset evaluation, which includes infill drilling, underground development, field and desktop studies, permitting and other activities associated with the ‘Underground Programme’, in the nine months was $19.6m compared with $22.3m last year.

That spending for the quarter was $4.8m, compared with $7.3m during the 2015 period.

Exploration expenditures outside of the Curraghinalt gold deposit during the nine months were $0.8m compared to $1.7m for the comparable period of 2015.

For the three months, exploration expenditures were $0.4m compared with $1.3m for the comparable period of 2015.

Regional exploration spending decreased in 2016 as the programme included soil and overburden sampling, panning and stream sediment testing on all six licence areas compared to the 2015 program which included limited drilling.

As of November 9, Dalradian had 242,432,276 common shares issued and outstanding.

“As we move into Q4, we build on three solid quarters of progress and de-risking at our Curraghinalt project,” said president and CEO Patrick F.N. Anderson.

“So far this year we have: increased mineral resources through extensive infill drilling; staked additional ground to expand our total land package; and completed a successful test stoping and grade reconciliation programme in support of mine planning.

“We look forward to the culmination of this work in Q4 with the publication of a feasibility study and environmental assessment, which will form the basis of our planning application.”

Anderson said with proceeds of almost $26m from warrant exercises, the company remained well positioned to embark on further work to enhance the results of its soon to be released feasibility study.

“Details of this work plan will be released prior to year-end.”