Dalradian Resources Inc.
TSX : DNA

Dalradian Resources Inc.

August 29, 2012 10:56 ET

Dalradian Provides Update on Norwegian Exploration Programs

TORONTO, ONTARIO--(Marketwire - Aug. 29, 2012) - Dalradian Resources Inc. ("Dalradian") (TSX:DNA) is pleased to provide an update on its ongoing exploration programs in Norway, where the company holds exploration concessions over 1.7 million hectares of prospective ground in both the northern and southern parts of the country.

Dalradian geological teams have been on the ground since May of this year. In this first phase of regional exploration, we are executing a program of systematic stream sediment sampling and till sampling over 2 of the 6 land packages, at Kongsberg in the south and Kautokeino in the north. To date our teams have collected:

  • 461 samples of a projected 1,000 samples over the Kongsberg Silver District.
  • 427 samples of a projected 2,300 samples over the Kautokeino greenstone belt.

Results are expected from the completed surveys in these areas in Q4 of this year at which point they will be compiled and interpreted. Areas for detailed follow-up will be identified by analyzing Dalradian's results in conjunction with historical geochemical and geophysical data. The remaining four project areas will be covered next year.

Southern Norway Concession Groups:

Dalradian holds a dominant land position, totaling approximately 3,115 km2, in the historic Kongsberg Silver District, located approximately 70 km southwest of the capital Oslo along the western margin of the Oslo rift structure. The company's concessions also include a further 2,777 km2 over the fault-offset continuation of the same geology in the Bamble area. The Kongsberg Silver District comprises over 80 former underground mines that produced more than 40 million ounces of silver between 1623 and 1958, with average grades reported in the early 1950s of 356 g/t silver. Despite a long history of production, little or no modern exploration has been carried out over the Kongsberg District prior to Dalradian acquiring the concessions. Approximately 32 precious metal occurrences are located on Dalradian concessions in the Kongsberg Silver District, according to the Norwegian government database.

Fieldwork began over the Kongsberg concession in May, with a regional stream sampling program aimed at covering the entire license area by year end. The program is now approximately 50% complete including an orientation survey to examine the optimal size fraction to analyze from the stream sediment samples. The field crews have now shifted their efforts to northern Norway, and will return to complete the Kongsberg program in October. Results for sampling completed thus far are expected over the next 4-6 weeks, and will be reviewed and prioritized for follow-up.

Dalradian is also reviewing and reprocessing existing airborne geophysical data over the southern concessions to aid in targeting. In addition, new high-resolution airborne data recently flown by the Norwegian government is expected to be released in the coming months.

Northern Greenstone Belts:

The northern concessions cover almost the entire Norwegian portion of three Paleoproterozoic greenstone belts (Pasvik - 387.5 km2, Karasjok - 3,819 km2 and Kautokeino - 5,765 km2), as well as a Paleoproterozoic basement window (Rombak - 1,449 km2), that extend across the border into Finland, Sweden and Russia. In these neighbouring countries, these greenstone belts host a number of significant gold and base metal discoveries, including Agnico-Eagle's producing Kittila gold mine in Finland. The Norwegian portion of these belts are remarkably underexplored despite good infrastructure, large population centres, thin forest cover and both bedrock and alluvial gold occurrences.

Dalradian is focusing its initial exploration program on the Kautokeino greenstone belt, the largest of the four belts covered by its concessions. The Kautokeino belt hosts the former producing Bidjovagge gold mine, as well as numerous other gold and base metal showings. Dalradian's 2012 exploration program has adopted an approach used very successfully in neighbouring Sweden, consisting of an initial grid of glacial till samples to identify down-ice dispersal trains from mineralized bedrock occurrences. The program will collect approximately 2,300 samples this season, including an already completed orientation survey around the former Bidjovagge gold mine. The program is expected to be completed by mid-October 2012, with priority areas identified for follow-up.

Dalradian is also compiling and reprocessing new and historical airborne geophysical data over the four northern concessions, and has already identified a number of compelling exploration targets for ground follow-up.

Qualified Person

Michele L. Cote, MSc., P.Geo, Dalradian, is the Qualified Person who supervised the preparation of the technical data in this news release.

About Dalradian Resources Inc.:

Dalradian Resources Inc. is a TSX-listed, Canadian based exploration company engaged in the acquisition, exploration and development of gold, base metals and other precious metals projects. With a European focus, our most advanced property is in Northern Ireland and focuses on and around the high-grade mesothermal gold deposit, Curraghinalt.

The Company's wholly owned subsidiary, Dalradian Gold Limited, holds a 100% interest, subject to certain royalties, in mineral prospecting licences and mining lease option agreements in counties Tyrone and Londonderry, Northern Ireland. The Department of Enterprise, Trade and Investment ("DETI") and the Crown Estate Commissioners ("CEC") have together granted to Dalradian base and precious metal mineral exploration rights to four contiguous areas collectively known as the Tyrone Project.

Dalradian's flagship deposit, Curraghinalt hosts an NI 43-101 compliant measured mineral resource of 0.02 MT grading 21.51 g/t gold for 10,000 contained ounces, indicated mineral resource of 1.11 MT grading 12.84 g/t gold for 460,000 contained ounces and inferred mineral resource of 5.45 MT grading 12.74 g/t for 2,230,000 contained ounces. Dalradian's NI 43-101 report, "An updated Mineral Resource Estimate for the Curraghinalt Gold Deposit, Tyrone Project, County Tyrone and County Londonderry, Northern Ireland" is dated January 10, 2012 and effective November 30, 2011, prepared by Messrs. Hennessey and Mukhopadhyay of Micon International Limited, and is available on SEDAR at www.sedar.com.

In Norway, Dalradian holds mineral rights for approximately 1.7 million hectares over three greenstone belts, as well as an area hosting an historic silver mining district. Dalradian is engaged in data acquisition and analysis over all its concessions, with field programs underway over its Kongsberg and Kautokeino concession areas.

Dalradian's Common Shares are listed on the Toronto Stock Exchange under the symbol "DNA". For further information, please see www.dalradian.com.

FORWARD-LOOKING INFORMATION

This news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the estimation of mineral resources. 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.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company 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 exploration activities; actual results of reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of metals; possible variations of mineral grade or recovery rates; 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. 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 news release 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.

To view "Figure 1: Kongsberg - Stream Sediment Sampling Program", please visit the following link: http://media3.marketwire.com/docs/Kongsberg.jpg.

To view "Figure 2: Kautokeino 2012 Till Sampling Program", please visit the following link: http://media3.marketwire.com/docs/Kautotillsample.jpg.

To view "Figure 3: Dalradian Team Sampling in Kautokeino", please visit the following link: http://media3.marketwire.com/docs/DalradianTeam.jpg.

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